The IPO of Interarch Building Products closed on a high note with overall subscription figures of 93.46 times, as institutional investors pumped in money on the last day of the issue closing on Wednesday.
The ₹600-crore initial public offering that came out with a price band of ₹850–900 consisted of a fresh issue worth ₹200 crore and an offer for sale of ₹400 crore. The IPO also reserved ₹2 crore worth shares for eligible employees with an employee discount of ₹85 a share.
The portion reserved for HNIs was subscribed 128.35 times and retail investors by 19 times. The employee quota received bids for 24 times, however, QIB portion stole the limelight with a subscription of 205.41 times. As against 46.91 lakh shares on offer, the IPO received bids for 43.85 crore shares.
Interarch Building Products, one of the leading turnkey pre-engineered steel construction solution providers, had garnered ₹179.49 crore from anchor investors as part IPO process. Foreign and Domestic Institutions who participated in the anchor were ICICI Prudential MF, Whiteoak Capital MF, Mirae Asset MF, 3P India MF, Pinebridge Global Funds, LC Pharos MF, SBI General Insurance, Eastspring Investment India, Bajaj Allianz Insurance Company, Chartered Finance & Leasing Ltd, Bengal Finance and Investment, Aryabhata MF, Carnelian Capital Compounder Fund, Societe Generale, and Subhkam Ventures (I).
Utility of funds
Of the proceeds from the fresh issue, ₹58.526 crore will be used for financing the capital expenditure towards setting up the project, ₹19.246 crore for financing the capital expenditure towards upgradation of the Kichha Manufacturing Facility, Tamil Nadu, manufacturing facility I, Tamil Nadu manufacturing facility II and Pantnagar manufacturing facility, ₹10.971 crore for funding investment in information technology assets for upgradation of existing information technology infrastructure of the company and ₹55 crore will be used for funding incremental working capital requirements and general corporate purposes.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.