Interarch Building Products IPO subscribed 3.19 times on Day 1; NII, retail lead

Interarch Building Products IPO

Interarch Building Products' initial public offering has received decent response from investors on the first day of bidding, i.e. August 19. The participants bought 1.49 crore equity shares, higher by 3.19 times over the offer size of 46.91 lakh shares, the subscription data on the exchanges showed.

The turnkey pre-engineered steel construction solutions provider targets to raise Rs 600.29 crore via public issue, at the upper price band. The IPO is mix of fresh issuance of shares worth Rs 200, and an offer-for-sale of 44.47 lakh shares worth Rs 400.29 crore by promoters and investor. The price band for the issue has been fixed at Rs 850-900 per share.

Non-institutional investors were at the leading position, buying 7.85 times the allotted quota, followed by retail investors who bid 2.75 times the portion set aside for them. Qualified institutional buyers also participated in the IPO on day 1, picking 27 percent shares of the reserved portion.

Employees of the company also looked aggressive in bidding as they bought 4.97 times the allotted quota. Interarch has reserved Rs 2 crore worth shares for its employees, who will get those shares at a discount of Rs 85 per share to the final IPO price.

The company that offers integrated facilities for design, engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings (PEB) has already raised Rs 179.5 crore via anchor book on August 16. Institutional investors including Whiteoak Capital, Pinebridge Global Funds, ICICI Prudential Mutual Fund, Mirae Asset, Eastspring Investments India, Bajaj Allianz Life Insurance, SBI General Insurance Company, Societe Generale, and Carnelian Capital Compounder Fund invested in the company via anchor book.

The fresh issue money will be utilised for setting up a new PEB manufacturing unit, and upgradation of the Kichha manufacturing facility, Tamil Nadu manufacturing facility I, Tamil Nadu manufacturing facility II and Pantnagar manufacturing facility.

Further, the company will use IPO money for upgrading existing information technology infrastructure, incremental working capital requirements; and general corporate purposes.

Interarch's PEB offerings find use in construction for industrial, infrastructure and building end-use applications. It has four manufacturing facilities comprising two in Sriperumbudur, Tamil Nadu, and one each in Pantnagar, and Kichha, Uttarakhand, which had an aggregate installed capacity of 1,41,000 MTPA.