Interarch Building Products rises another 2% after IPO; Should you buy, sell, hold?
After a strong debut on Dalal Street, Interarch Building Products shares surged another 2 percent on August 27, extending gains from the previous day when the share closed over 35 percent higher. The company saw a robust stock market debut on August 26 after listing at Rs 1,299 apiece, a premium of 44.3 percent over the issue price of Rs 900.
Wondering whether to buy, sell or hold? Here's what market experts say.
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With its solid market position, diverse and loyal customer base, and proven track record of quality and efficiency, Interarch is well-poised to continue its growth and leadership in the PEB industry. The company’s integrated operations and ability to deliver cost-effective, timely projects make it a strong contender for long-term success. Therefore, shareholders should hold the stock for the medium to long term, says Akriti Mehrotra, Research Analyst at StoxBox.
Interarch Building Products' IPO saw massive demand, achieving a subscription rate of 93.53 times on the final day of bidding. Investors across all categories sought 43.88 crore equity shares, far exceeding the offer size of 46.91 lakh shares.
Read: Grey market premiums point towards strong listing for upcoming IPOs
"The company has created a niche place in pre-engineered steel buildings segment and is one of the leading players in India. Its top and bottom lines showed consistent growth, with greater margins resulting from a balanced product mix and on-time project completion and advise investors to book short-term profit after IPO," Amit Goel, Co-founder and Chief Global Strategist at Pace 360, said.
Mehta Equities, with a 'hold' rating on the company, suggests that the issue was reasonably priced by looking at its financial performance and market position and believes that the market could give Interarch a premium multiple towards its leadership position. "We believe the investor demand has come considering reasonable valuations and an opportunity to invest in a leading player in the PEB segment with a strong market position, ranking 3rd in operating revenue with the 2nd largest installed capacity and commands a healthy market share in the organized markets," it added.
Read more: Tata Tech sees 3.3% stake change hands in Rs 1,367.4 crore large deal
The turnkey pre-engineered steel construction solutions provider raised Rs 179.5 crore through its anchor book launched on August 16. The public issue opens on August 19. Institutional investors including ICICI Prudential Mutual Fund, Whiteoak Capital, Mirae Asset, Pinebridge Global Funds, LC Pharos Multi-Strategy Fund, and Eastspring Investments India Infrastructure Equity Open participated in the anchor book.
At about 11 am on August 27, shares of the company were 1,202, higher by just 0.5 percent, shedding most of its early gains.
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