August 20, 2024
New Delhi, India
Interarch Building Products IPO
Interarch Building Products Limited, a leading provider of pre-engineered steel construction solutions in India, has launched its initial public offering (IPO) to raise ₹600.29 crore. The IPO, which includes a combination of fresh issues and an offer for sale (OFS), has garnered significant interest from investors, with the issue already being subscribed multiple times by the second day of bidding.
IPO Subscription Status: As of the second day of bidding, the Interarch Building Products IPO has been subscribed 4.47 times. According to data from the National Stock Exchange (NSE), the IPO received bids for 2.09 crore shares against the 46.91 lakh shares on offer.
- Retail Investors: The retail portion was subscribed 3.72 times, with bids for 88.32 lakh shares compared to the 23.71 lakh shares reserved for this category.
- Non-Institutional Investors (NIIs): This category saw robust demand, with the NII portion being subscribed 11.42 times, receiving bids for 1.16 crore shares against the 10.16 lakh shares reserved.
- Qualified Institutional Buyers (QIBs): The QIB portion lagged, with only 27% subscription, as QIBs applied for 3.45 lakh shares against the 12.76 lakh shares available.
Interarch Building Products IPO Offer Size, Price Band, and Lot Size:
- Total Issue Size: The IPO is valued at ₹600.29 crore, comprising 66.47 lakh shares.
- Fresh Issue: The fresh issue consists of 22 lakh shares, amounting to ₹200 crore.
- Offer for Sale (OFS): The OFS includes over 44 lakh shares, valued at ₹400.29 crore.
- Price Band: The price band for the IPO is set between ₹850 and ₹900 per equity share.
- Minimum Lot Size: Investors can apply for a minimum of one lot, which includes 16 shares, amounting to ₹14,400.
Important IPO Dates:
- Subscription Period: The IPO is open for subscription until August 21.
- Allotment Date: The allotment status is expected to be finalized on August 22.
- Refunds: Refunds for unsuccessful bidders will be initiated on August 23.
- Shares Credited: Shares will be credited to the demat accounts of successful bidders on August 23.
- Listing Date: Interarch Building Products shares are expected to be listed on the NSE and BSE on August 26.
IPO Objectives: The proceeds from the IPO will be used to finance several strategic initiatives:
- Capital Expenditures: Funds will be allocated for setting up a new pre-engineered building (PEB) manufacturing unit and upgrading the Kichha Manufacturing Facility.
- IT Infrastructure: Investment in information technology assets for upgrading operations.
- Working Capital: A portion of the proceeds will be used to meet incremental working capital requirements.
- General Corporate Purposes: Remaining funds will be utilized for general corporate purposes.
Registrar and Lead Managers:
- Registrar: Link Intime India Private Limited is the registrar for the IPO.
- Lead Managers: Abit Private Limited and Axis Capital Limited are the book-running lead managers, while ICICI Bank Ltd and HDFC Bank Limited are the sponsor banks.
About Interarch Building Products Limited: Founded in 1983 as Luxalon Building Products Private Limited, Interarch Building Products Limited has evolved into a comprehensive provider of pre-engineered steel construction solutions in India. The company offers integrated services, including design and engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings. Interarch has played a crucial role in supporting critical industrial, commercial, and infrastructure projects across the country.
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