Interarch Building Products IPO Listing: The initial public offering (IPO) of Interarch Building Products Ltd, which received a 93.79 times subscription between August 19 and August 21, witnessed a stellar stock market debut on August 26. On the BSE, shares of Interarch Building listed at a premium of 43.46 per cent at Rs 1,291 apiece as against its issue price of Rs 900. However, the shares started falling soon after on profit-booking. Analysts suggest a ‘hold’ recommendation to the shares.
On the NSE, shares of Interarch Building Products Ltd opened at a premium of 44.33 per cent at Rs 1,299 apiece on Monday. However, later, the shares started falling and were trading lower by around 4 per cent at Rs 1,247 apiece as compared to its opening price of Rs 1,299.
“Interarch Building Products’ strong listing is a positive indicator of its future prospects. So, those who want to hold it for the long term are suggested to keep a stoploss at 1,200,” said Shivani Nyati, head of wealth, Swastika Investmart Ltd.
She added that the positive performance on the listing is attributed to the company’s established market position, integrated manufacturing capabilities, and consistent financial growth.
“The IPO was well-received by investors, with a subscription rate of 93.79 times, indicating strong demand. This strong response reflects investor confidence in IBPL’s continued growth and potential for success,” she said.
Prashanth Tapse, senior vice-president (research), Mehta Equities Ltd, said, “Interarch Building Products received a healthy response from the day one to the last day of the issue from all types of investors. We believe the investor demand has come considering reasonable valuations and an opportunity to invest in a leading player in PEB segment with strong market position, ranking 3rd in operating revenue with the 2nd largest installed capacity and commands a healthy market share in the organised markets.”
Considering all the parameters subscription demand and market sentiments, it is indicating a healthy room for listing gain in the range of ~25-30% and above against the issue price of Rs 900 per share and we continue to recommend allotted investors to hold as Interarch is well-positioned for sustained growth for the long term, he added.
“On valuation parse at the upper price band of Rs 900, the issue was reasonable priced by looking at it financial performance and market position and despite being capital incentive business model we believe the market could give Interarch a premium multiple towards its leadership position and sector agnostic demand and growth triggers; this may result in delivering healthy post listing gains also,” Tapse said.
