Interarch Building Products shares list at over 43% premium on BSE, NSE

IPO listing today: The company's shares were listed at Rs 1,291 on the BSE, marking a 43.46 per cent premium over the upper end of its issue price of Rs 900

Interarch Building Products IPO listing today: Interarch Building Products, a provider of turnkey pre-engineered steel construction solutions, made a stellar debut on the stock market on Monday, driven by positive market sentiment.

The company's shares were listed at Rs 1,291 on the BSE, marking a 43.46 per cent premium over the upper end of its issue price of Rs 900.

On the NSE, Interarch Building Products shares opened at Rs 1,299, reflecting a 44.43 per cent premium.  As a result, investors saw a return of Rs 399 per share, or over 44 per cent, post-listing.

Commenting on the listing of Interarch Building Products shares, Shivani Nyati, Head of Wealth at Swastika Investmart, said, "This positive performance is attributed to the company's established market position, integrated manufacturing capabilities, and consistent financial growth." Nyati further highlighted that the IPO was well-received by investors, with a subscription rate of 93.79 times, indicating strong demand. 

 

"This strong response reflects investor confidence in IBPL's continued growth and potential for success. Interarch Building Products' strong listing is a positive indicator of its future prospects. Therefore, those who want to hold it for the long term are suggested to keep a stop-loss at Rs 1200," said Nyati. 

Ahead of its debut on the stock exchanges, Interarch Building Products' shares were trading at a premium of Rs 320, or 35.56 per cent, in the grey market, signaling a strong listing gains for investors. 
 

The public issue, which closed on Wednesday, August 21, 2024, received favourable reviews from brokerage firms including Reliance Securities, Deven Choksey Research, SBI Securities, and Swastika Investmart. 

The IPO was offered at a price band of Rs 850-900 per share, with a lot size of 16 shares. It comprised a fresh issue of 2,222,222 shares, aggregating up to Rs 200 crore, along with an offer for sale where the company's promoters and investors offloaded 4,447,630 equity shares with a face value of Rs 10 per share. The basis of allotment for Interarch Building Products IPO shares was finalised on Thursday, August 22, 2024. 

Interarch Building Products Limited is one of India's leading providers of turnkey pre-engineered steel construction solutions, offering integrated facilities for design and engineering, manufacturing, and onsite project management for the installation and erection of pre-engineered steel buildings.

Interarch Building Products, in its Red Herring Prospectus (RHP) papers, stated that its revenue from operations grew from Rs 834.94 crore in FY22 to Rs 1,293.30 crore in FY24, achieving a Compound Annual Growth Rate (CAGR) of 24.46 per cent per cent. Additionally, the company's profit after tax (PAT) rose from Rs 17.13 crore in FY22 to Rs 81.46 crore in FY23, and further to Rs 86.26 crore in FY24.