Glass fiber reinforced polymer (GFRP) solutions provider ARC Insulation & Insulators saw strong investor interest in its initial public offering (IPO) on August 21, achieving full subscription on the first day. Investors placed bids for 45.36 lakh shares against the offer size of 23.58 lakh shares, translating to a subscription rate of 1.92x across all investor categories.
The West Bengal-based company launched the IPO to raise Rs 41.19 crore through a total of 32.95 lakh shares, including a fresh issue of 30.45 lakh shares and an offer-for-sale of 2.5 lakh shares by promoter Manish Bajoria. The price band was set at Rs 119-125 per share.
Ahead of the IPO, the company mobilized Rs 11.71 crore via the anchor book of 9.37 lakh shares on August 20 at the upper price band. Anchor investors included Innovative Vision Fund, IMAP India Capital Investment Trust, AL Maha Investment Fund, Compact Structure Fund, Nav Capital, and Raghunath Capital Vision Fund.
ARC Insulation plans to utilize the fresh issue proceeds for constructing a factory shed for its new manufacturing unit, acquiring office space, repaying borrowings, and meeting working capital requirements. The company operates one plant in West Bengal and provides corrosion-resistant, high-tensile GFRP products, which are used as alternatives to steel rebars in industries like infrastructure, power, cooling towers, chemical, composites, electrical substations, and mining.
Gretex Corporate Services is the sole book running lead manager for the IPO, which will remain open until August 25.
Disclaimer: This is for informational purposes only and should not be considered as investment advice. Investors should consult with a qualified financial advisor before making any investment decisions.
