ARC Insulation shares set for NSE SME debut. GMP signals strong debut

Strong demand in subscription phase Live Events About the company as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now! (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel ARC Insulation and Insulators is preparing to make its stock market debut on the NSE SME platform on Friday. The company’s Rs 41.19 crore public issue, which combined a fresh issue of Rs 38.06 crore and an offer for sale of Rs 3.13 crore, drew a strong investor response during its subscription window from August 21–25.In the unlisted market, the ARC Insulation IPO is commanding a grey market premium (GMP) of around 48% over its upper price band of Rs 125. That suggests listing expectations near Rs 185 per share, though actual performance will depend on broader market sentiment at the time of debut.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.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.