Interarch Building Products IPO bought 10.84 times on day 2, QIB portion fully booked

Interarch Building Products IPO

The initial public offering of Interarch Building Products continued to receive strong response from investors who bought 5.08 crore equity shares on August 20, the second day of bidding, higher by 10.84 times the offer size of 46.91 lakh equity shares.

The New Delhi-based company aims to mobilise Rs 600.29 crore via maiden public issue comprising a fresh issuance of Rs 200 crore worth shares and an offer-for-sale of 44.47 lakh shares worth Rs 400.29 crore. The price band for the issue, which closes on August 21, is Rs 850-900 per share.

Non-institutional investors (high networth individuals) remained at the leading position to boost the subscription numbers of Interarch, buying 30.82 times the portion set aside for them. Retail investors were at the second spot, picking 7.31 times the allotted quota, while qualified institutional buyers bought 1.47 times the portion set aside for them.

Employees also looked supportive to the issue as they picked 11.75 times the allotted quota. The company has reserved Rs 2 crore worth of equity shares for its employees who will get those shares at a discount of Rs 85 per share to the final issue price.

The turnkey pre-engineered steel construction solutions provider has already raised Rs 179.5 crore via anchor book on August 16. Institutional investors such as SBI General Insurance Company, ICICI Prudential Mutual Fund, Pinebridge Global Funds, Eastspring Investments India, Bajaj Allianz Life Insurance, Whiteoak Capital, Mirae Asset, and Societe Generale invested in the company.

The fresh issue proceeds will be utilised for setting up a new PEB manufacturing unit, and upgradation of the Kichha manufacturing facility, Tamil Nadu manufacturing facility I & II and Pantnagar manufacturing facility. In addition, the money will also be spent for upgradation of existing information technology infrastructure, incremental working capital requirements; and general corporate purpose.

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

It had the second largest aggregate installed capacity of 1,41,000 metric tonnes per annum (MTPA) as of March 2024 and a market share of 6.5 percent in terms of operating income in FY24 among integrated PEB players in India.