Shares of Interarch Building Products experienced a significant surge of over 7% on the National Stock Exchange (NSE) after the company inaugurated a new manufacturing plant in Andhra Pradesh on 5th September. This development has garnered substantial interest among investors, especially those looking to buy shares online, as the company's expansion signals promising growth potential.
Expansion with new manufacturing plant
Interarch's latest manufacturing facility is its fifth unit, representing a significant investment of Rs 95 crore. The inauguration of the first phase of this plant marks a key milestone for the company, which aims to boost production capacity and cater to growing market demands.
The first phase, covering 4 acres of land, has been established with an investment of Rs 40 crore, fully funded by internal accruals. With this expansion, Interarch expects to increase its production capacity by 20,000 MT annually. This new plant will also provide employment to 250 individuals, further strengthening the company's operational capacity.
Future plans and further expansion
Interarch's expansion doesn't stop with the first phase. The second phase of the 6 acres-long manufacturing plant is expected to be completed within the next 7-8 months. This phase will further boost the company’s installed capacity by 40,000 MT, taking the overall production capacity to 2 lakh MT per annum.
The second phase, with an estimated investment of Rs 57 crore, will be funded through proceeds raised from Interarch's recent IPO. This strategic expansion is poised to meet the rising demand for the company’s products and services, making it an attractive proposition for those looking to buy shares online.
IPO success and stock market performance
Interarch Building Products made its stock market debut only last week, listing at Rs 1,299 per share—a premium of over 44% above its issue price of Rs 900. Despite an initial dip due to profit booking, which led to a decline of nearly 15% from its listing price, the company's stock regained momentum following the announcement of its new manufacturing plant.
At noon on 5th September, Interarch shares were trading at Rs 1,210.40 on the NSE, reflecting renewed investor confidence. The stock’s movement and the company’s ongoing expansion plans make it an appealing option for those who buy shares online, especially as the company looks to increase its market presence with a focus on pre-engineered buildings (PEBs).
A leader in pre-engineered buildings
Interarch Building Products specialises in pre-engineered buildings, offering a range of services that include turnkey PEB contracts and the sale of related products. The company's expertise spans the design, manufacture, and installation of PEBs, along with the supply of metal ceilings, corrugated roofing, steel structures, and light gauge framing systems.
This expansion, combined with the company’s innovative product line, positions Interarch to capitalise on growing infrastructure demands across India. For investors looking to buy shares online, this presents a unique opportunity to tap into a sector with robust growth potential.
Wrapping up
Interarch Building Products’ decision to expand its manufacturing capabilities is already showing positive market reactions, with shares surging over 7% after the recent plant inauguration. As the company moves forward with the second phase of its expansion, investors keen on capitalising on its growth potential are exploring opportunities to buy shares online. This development reinforces the firm’s vision for growth and makes it an attractive stock in the pre-engineered building sector.
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