Ahead of listing, the IPO commanded a grey market premium of about 48% over the upper price band of Rs 125, with unlisted market expectations near Rs 185 per share. Actual performance, however, will depend on broader market sentiment.
Strong demand in subscription phase
The IPO was subscribed 18.71 times overall, with robust participation across categories. The retail quota saw 17.27 times bids, non-institutional investors (NIIs) put in 26.84 times the demand, and qualified institutional buyers (QIBs) subscribed 15.12 times. The anchor book had already brought in Rs 11.71 crore a day before the opening.The IPO proceeds will be used for capital expenditure towards set up of factory shed for new manufacturing unit, purchase of new office spaces, repayment/pre-payment of certain debt facilities including Bridge Finance, working capital requirements and general corporate purposes.
About the company
Founded in 2008, ARC Insulation specializes in glass fiber reinforced polymer (GFRP) products, which are used in sectors like construction, infrastructure, power, marine, and chemicals.
Its portfolio includes GFRP rebars, tubes, gratings, fencing, and cable trays, known for durability and corrosion resistance.
Financially, ARC Insulation has shown consistent growth. Revenue rose 15% year-on-year to Rs 33.15 crore in FY25, while profit after tax surged 40% to Rs 8.57 crore. Its margins remain strong, with EBITDA margin at 38.2% and PAT margin above 26%. The return on equity stood at an impressive 45.5% in FY25.
While analysts note the sharp jump in profits from FY24 onwards augurs well for the company, the performance from the listing will depend on the company will sustain its financial growth in the coming quarters.
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