New Delhi, 29 August (Kiran News). Shares of ARC Insulation and Insulators, a company engaged in manufacturing high-performance glass fibre reinforced polymer composite products, made a strong entry in the stock market today. However, after listing, the shares came under selling pressure and quickly hit the lower circuit. Under the IPO, the company’s shares were issued at a price of ₹125. Today, they were listed at ₹145 on the NSE SME platform, a 16 percent premium.
Following the strong listing, profit booking began, and within a short time, the shares slipped to the lower circuit level of ₹137.75. As a result, IPO investors’ gains reduced to 10.20 percent on the very first day of trading.
The ₹41.19 crore IPO of ARC Insulation and Insulators was open for subscription from 21 to 25 August. The IPO received a good response from investors, resulting in an overall subscription of 18.71 times. The qualified institutional buyers (QIB) portion was subscribed 15.12 times, the non-institutional investors (NII) portion saw 24.84 times subscription, and the retail investors’ portion was subscribed 17.27 times. New shares worth ₹38.06 crore were issued under this IPO, and 2.5 lakh shares with a face value of ₹10 were sold through the offer for sale window.
The funds raised through the IPO will be used by the company to set up a factory shed in its new manufacturing unit, purchase new office space, reduce old debt, meet working capital requirements, and for general corporate purposes.
As per the claims made in the prospectus, the company’s financial position has shown continuous improvement. In the financial year 2022-23, the company posted a net profit of ₹2.64 crore, which increased to ₹6.10 crore in 2023-24, and jumped to ₹8.57 crore in 2024-25. During this period, the company’s revenue grew at a compound annual growth rate (CAGR) of more than 16 percent, reaching ₹33.15 crore. The company’s debt levels fluctuated during this period. At the end of FY 2022-23, the debt was ₹5.30 crore, which fell to ₹2.78 crore at the end of FY 2023-24, but rose again to ₹5.97 crore by the end of FY 2024-25.
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