ARC Insulation & Insulators IPO fully subscribed on day one

ARC Insulation & Insulators IPO

Glass fiber reinforced polymer solutions provider ARC Insulation & Insulators' initial public offering received a decent response from investors on August 21, getting fully subscribed on the first day of bidding, with bids from across categories of investors.

The public issue has been subscribed 1.92 times on day one, with investors bidding for 45.36 lakh shares against the offer size of 23.58 lakh shares via 1,044 applications.

The West Bengal-based company launched an offer to raise Rs 41.19 crore via a maiden public issue of 32.95 lakh shares, which consists of fresh issue of 30.45 lakh shares, and an offer-for-sale of 2.5 lakh shares by promoter Manish Bajoria.

The price band for the offer has been pegged at Rs 119-125 per share.

Of the total IPO size, the company has already mobilised Rs 11.71 crore via anchor book of 9.37 lakh shares on August 20 at the upper price band.

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Innovative Vision Fund, IMAP India Capital Investment Trust, AL Maha Investment Fund, Compact Structure Fund, Nav Capital and Raghunath Capital Vision Fund were the investors that participated in the anchor book.

ARC Insulation intends to utilise fresh issue proceeds mainly for setting up of factory shed for new manufacturing unit, purchase of new office space, repayment of borrowings and working capital requirements.

With one manufacturing plant in West Bengal, the company provides corrosion-resistant, tensile strength and insulating glass fiber reinforced polymer (GFRP) solutions which can be used as a substitute for steel bars or rebars. ARC Insulation's products are used in industries like infrastructure, power, cooling tower, chemical, composite, electrical substation and mining.

Gretex Corporate Services is the sole book running lead manager for the ARC Insulation & Insulators IPO which will remain open till August 25.