ARC Insulation IPO: Issue subscribed 7.77x so far on the third bidding day; check GMP, subscription status, more

ARC Insulation IPO commenced on Thursday, August 21 and will conclude on Monday, August 25. ARC Insulation IPO price band has been set at ₹119 to ₹125 equity share, each with a face value of ₹10. Investors can place bids for a minimum of 1,000 equity shares and in multiples of 1,000 shares thereafter.

Founded in September 2008, Arc Insulation and Insulators Limited focuses on producing high-performance glass fiber reinforced polymer (GFRP) products that offer corrosion-resistant solutions for the construction industry.

The range of products includes GFRP rebars, tubes, gratings, and fencing, all recognised for their durability and lightweight strength.

These products are utilised in various sectors such as infrastructure, power, cooling towers, chemicals, composites, electrical substations, and mining.

The company has pioneered the use of innovative GFRP solutions in the chemical processing and marine construction industries.

The manufacturing facility is located in Ramdevpur Village, Parganas South, West Bengal.

As per the red herring prospectus (RHP), the company's sole listed peer is Aeron Composite Ltd (with a P/E of 12.22).

ARC Insulation IPO subscription status

ARC Insulation IPO subscription status is 7.77x on day 3 so far, as per chittorgarh.com. The retail portion was subscribed 9.69x, and NII portion was booked 8.94 times. The qualified institutional buyers portion is booked 3.53 times.

The company has received bids for 1,70,41,000 shares against 21,93,000 shares on offer on the first bidding day, at 12:44 IST, according to data on chittorgarh.com.

ARC Insulation IPO details

The SME issue amounts to ₹41.19 crore, which includes a fresh issue of ₹38.06 crore and an offer for sale totaling ₹3.13 crore.

ARC Insulation IPO intends to use the net proceeds for various purposes, including capital expenditures for establishing a factory shed for a new manufacturing unit, acquiring new office space, paying off debts, meeting working capital needs, and addressing general corporate purposes.

Gretex Corporate Services serves as the primary lead manager, while Maashitla Securities Pvt Ltd acts as the issue registrar. The market makers for the company include Gretex Share Broking Pvt Ltd and Nikunj Stock Brokers Ltd.

ARC Insulation IPO GMP today

ARC Insulation IPO GMP today is +10. This indicates ARC Insulation share price were trading at a premium of ₹10 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of ARC Insulation share price was indicated at ₹135 apiece, which is 8% higher than the IPO price of ₹125.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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