The initial public offering (IPO) of Interarch Building Products received a robust response from investors on August 20, the second day of bidding, with 5.08 crore equity shares being subscribed—10.84 times the offer size of 46.91 lakh equity shares.
The New Delhi-based company aims to raise Rs 600.29 crore through its maiden public issue, which includes a fresh issuance of Rs 200 crore worth of shares and an offer-for-sale of 44.47 lakh shares valued at Rs 400.29 crore. The issue, which closes on August 21, is priced between Rs 850 and Rs 900 per share.
Non-institutional investors, primarily high-net-worth individuals, led the strong subscription, buying 30.82 times their allocated portion. Retail investors followed, subscribing to 7.31 times their quota, while qualified institutional buyers purchased 1.47 times their reserved portion. Employees also showed strong support, buying 11.75 times their allocated share, with Rs 2 crore worth of shares reserved for them at a discount of Rs 85 per share.
Interarch, a turnkey pre-engineered steel construction solutions provider, had already secured Rs 179.5 crore through the anchor book on August 16. Institutional investors like SBI General Insurance, ICICI Prudential Mutual Fund, Pinebridge Global Funds, Eastspring Investments India, Bajaj Allianz Life Insurance, Whiteoak Capital, Mirae Asset, and Societe Generale participated in the issue.
The proceeds from the fresh issue will be used to establish a new PEB manufacturing unit, upgrade existing facilities in Kichha, Tamil Nadu, and Pantnagar, enhance IT infrastructure, and meet incremental working capital and general corporate needs.
Interarch is a leading provider of pre-engineered steel construction solutions in India, with the second-largest installed capacity of 1,41,000 metric tonnes per annum (MTPA) as of March 2024, and holds a 6.5 percent market share in terms of operating income among integrated PEB players in India for FY24.
