This recently listed stock surged 10% today; zoomed 107% over issue price

Interarch Building Products share price hit a new high of Rs 1,860, zooming 107 per cent against its issue price of Rs 900 per share

Interarch Building Products shares rallied 10 per cent to touch Rs 1,860 on the BSE in Tuesday’s intra-day trade amid heavy volumes on a healthy business outlook. In two days, the stock of the civil construction company has gained 13 per cent. 

 

Interarch, a leading player in the Pre-Engineered Building (PEB) Industry, hit its highest level since market debut on August 26, 2024. The market price of the company has more than doubled, or zoomed 107 per cent against its issue price of Rs 900 per share, since listing on the bourses.

 

At 11:53 AM, Interarch Building share price was 9 per cent higher at Rs 1,837.25, as compared to the 0.26 per cent rise in the BSE Sensex. The average trading volumes on the counter jumped over two-fold, with a combined nearly 1 million equity shares changing hands on the NSE and BSE.

 

 

Interarch is one of the leading turnkey pre-engineered steel construction solution providers in India with integrated facilities for design and engineering, manufacturing, and on-site project management capabilities for the installation and erection of pre-engineered steel buildings.

 

On Friday, December 20, after market hours, Interarch informed that it has projected a 50 per cent growth in North India for FY 25-26, with the majority of this growth coming from Uttar Pradesh. The North region is expected to contribute 30 per cent to the company’s overall business volume during this period, it added.

 

Based on inquiries and pipeline, the management anticipates revenue growth of around 10 per cent, majorly driven by decent volume growth for the current financial year (FY25), followed by 10-15 per cent growth for FY26.

 

The management said the company has executed major projects for brands like Hindustan Unilever, PepsiCo, Addverb Technologies, and Yamaha Motor, which have driven its success in the North region.

 

The company is involved in the engineering, manufacturing and erecting of a large PEB facility for Ashok Leyland in Uttar Pradesh, focused on electric bus production, marking a significant step in sustainable transportation, the management said, adding that Interarch is also undertaking significant capacity expansion at its Kichha, Uttarakhand, plant to enhance its regional footprint.

 

With the Andhra Pradesh Phase 2 unit expected to be operational, and the Kichha upgrade completed by April 2025, Interarch’s total installed capacity is projected to surpass 200,000 metric tons per annum.

 

The company’s aim for 2025 is to achieve an installed capacity of over 200,000 metric tons annually, reinforcing its commitment to supporting the country’s growing demand for high-quality sustainable building solutions.

 

Also, recently, the company has acquired land in Gujarat. With this investment, the company aims to boost its production capabilities and cater to the rising demand for high-quality pre-engineered building solutions in key markets.

 

Meanwhile, last week, Interarch Buildings also announced a strategic partnership with Jindal Steel & Power Ltd (JSPL), a leading name in steel manufacturing, with the aim to promote the use of steel as the preferred material for multi-story buildings, data centers, and heavy structures.

 

Rapid industrialisation, urbanisation and the high adoption rate of advanced construction practices, growing Investments in renewable energy, smart city mission and favorable government initiatives leading to an increase in overall capex investments for tourism, warehousing and better public infrastructure connectivity will enable sustainable growth for Interarch in the next few years. Interarch's domain expertise, early mover advantage in the segment, a diverse customer base, and demonstrated financial performance are added strengths, said analysts at Reliance Securities in the company's IPO note.

 

Interarch is strategically positioned to capitalise on the dynamic growth of the Indian PEB industry, which has expanded significantly due to rising infrastructure development, industrialisation and a growing demand for efficient construction solutions. Interarch’s strong financial performance (Revenue CAGR- 24.5 per cent, PAT CAGR- 124.4 per cent from FY22-24) marked by a growing order book and a solid balance sheet, positions it well to leverage these industry trends, according to Deven Choksey Research.