Shares of Interarch Building Products will be listed on the exchanges today. The company has fixed the IPO pride at ₹900, at the upper end of the price band ₹850-900 after the issue closed with strong subscriptions.
The IPO closed 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 had reserved ₹2 crore worth shares for eligible employees.
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.
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 facilities I & II, and Pantnagar manufacturing facility.
₹10.971 crore will be used for funding investments 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.