New Delhi. Shares of ARC Insulation and Insulators, a company that makes high-performance glass fiber reinforced polymer composite products, made a strong start in the stock market today. However, due to the selling pressure after the listing, the company’s shares were lower circuit in a short time. Under the IPO, the company’s shares were released at a price of Rs 125. Today, its listing on NSE SME platform was at Rs 145 with 16 percent premium. The company’s shares slipped to the lower circuit level of Rs 137.75 shortly after the profit recovery started after the strong listing. In this way, the profit of the company’s IPO investors declined to 10.20 percent in the first day trading.

The IPO of Rs 41.19 crore of ARC Insulation and Insulators was opened for subscription between 21 and 25 August. This IPO received good response from investors, due to which it was subscribed to 18.71 times. Among them, the reserve post for qualified Institutional Buyers (QIB) was subscribed to 15.12 times. Similarly, there was 24.84 times subscription in the reserve post for non -institutional investors (NII). Apart from this, the reserve post for retail investors was 17.27 times subscribed. Under this IPO, new shares of Rs 38.06 crore have been issued. Apart from this, 2.50 lakh shares with a face value of Rs 10 have been sold through offers for cell windows. The company will use the money raised through the IPO, setting up factory sheds in its new manufacturing unit, buying new office space, reducing the old debt burden, meeting the needs of working capital and in common corporate purposes.

Talking about the financial condition of the company, according to the claim made in the prospectus, its financial health has been strongly strengthened. In the financial year 2022-23, the company had a net profit of Rs 2.64 crore, which increased to Rs 6.10 crore to Rs 6.10 crore and 2024-25 to Rs 8.57 crore. During this period, the revenue of the company increased to Rs 33.15 crore from a compound rate (compound annual growth rate) of more than 16 percent annually. During this time the company continued to fluctuate debt. At the end of FY 2022-23, the company’s debt of Rs 5.30 crore, which declined to Rs 2.78 crore at the end of FY 2023-24. However, at the end of FY 2024-25, the company’s debt once again increased to Rs 5.97 crore.