The initial public offering (IPO) of Interarch Building Products opens for bidding next week on August 19 (Monday). The company will be offering its shares in the fixed price band of Rs 850-900 per share. Investors can apply for a minimum of 16 equity shares and its multiples thereafter until Wednesday, August 21, when the issue closes for bidding.
Interarch Building Products, incorporated in 1983, is a leading provider of turnkey pre-engineered steel construction solutions in India. The company offers integrated facilities for design, engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings (PEB).
The company is looking to raise a total of Rs 600.29 crore via IPO, which includes a fresh share sale of Rs 200 crore and an offer-for-sale (OFS) of up to 44,47,630 shares by its promoters and existing shareholders amounting to Rs 400.29 crore. Anchor book for the issue opens on Friday, August 16.
The net proceeds from the issue shall be utilized towards financing the capital expenditure of a new PEB manufacturing unit, upgradation of existing manufacturing facilities, funding investment in IT assets, funding incremental working capital requirements; and general corporate purposes.
Interarch Buildings had the second-highest total installed capacity of 141,000 metric tonnes per year as of March 31, 2023. It held a 6.1 per cent market share in operating income among integrated PEB players in India in FY23. The company offers PEBs through pre-engineered steel building contracts and the sale of pre-engineered steel building materials.
Interarch Building's industrial/manufacturing construction category customers include Grasim Industries, Berger Paints India, Blue Star Climatech, Timken India, and Addverb Technologies. The company serves InstaKart Services in the infrastructure construction category.
The company has four manufacturing facilities out of which two are situated in Sriperumbudur, Tamil Nadu; one in Pantnagar, Uttarakhand and one in Kichha, Uttarakhand, India. It has sales and marketing projects in Chandigarh, Punjab, and Haryana; Lucknow, Uttar Pradesh; Coimbatore, Tamil Nadu; Bhubaneshwar, Odisha; and Raipur, Chhattisgarh.
Interarch Building Products had reported a net profit of Rs 86.26 crore with a revenue of Rs 1,306.32 crore for the financial year ended on March 31, 2024. The company had clocked a bottomline of Rs 81.46 crore with a revenue of Rs 1,136.39 crore for the financial year 2022-23.
Interarch Building has reserved 75 per cent of the net for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the net offer. Remaining 10 per cent of the net offer shall be allocated towards the retail investors.
Ambit and Axis Capital are the book running lead managers of the Interarch Building Products IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with xx as the tentative date of listing at the bourses.