Interarch Building Products' shares on August 26 are expected to start the first-day first trade with solid double-digit gains after it was subscribed over 90x. Experts see the listing premium to be in the range of 30-40 percent.
Interarch Building Products' IPO saw a bumper subscription of 93.53 times on the final day of bidding. All kinds of investors boosted the issue as they bought 43.88 crore equity shares against the offer size of 46.91 lakh equity shares.
Its IPO shares seem to be receiving strong demand even in the grey market, trading at around 35 percent premium over the issue price, the market observers said.
Interarch Building Products specialises in the design, manufacturing, and sale of pre-engineered buildings (PEBs) through two primary services. The first involves turnkey PEB contracts, where the company oversees the entire process, from design to on-site installation and erection. The second service focuses on PEB product sales, offering metal ceilings, corrugated roofing, PEB steel structures, and light gauge framing systems.
Amit Goel, co-founder and chief global strategist at Pace 360 said, "The issue appears fully priced, based on the FY24 earnings. We expect a listing at around Rs 1260-1280 per share, resulting in a listing gain of around 40 percent."
"On valuation at the upper price band of Rs 900, the issue was reasonably priced by looking at its financial performance and market position and we believe the market could give Interarch a premium multiple towards its leadership," said Prashanth Tapse, senior VP Research at Mehta Equities.
Akriti Mehrotra, Research Analyst at StoxBox said that the participants should hold on to the share from a medium to long-term perspective.
The company intends to raise Rs 200 crore via fresh issue, and another Rs 400.29 crore through offer-for-sale (OFS), at the upper end of the price band at Rs 850-900 per share.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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