August 17, 2024
New Delhi, India
Interarch Building Products IPO
Interarch Building Products Ltd, a leading provider of pre-engineered steel construction solutions, is set to launch its Initial Public Offering (IPO) on August 19, 2024. The IPO, which aims to raise ₹600.29 crore, will be open for subscription until August 21, 2024. Ahead of the IPO, the company has already mobilized ₹179.49 crore from anchor investors.
Anchor Investor Participation: On August 16, 2024, Interarch allocated 19,94,288 equity shares at ₹900 per share to anchor investors, raising ₹179.49 crore. Notably, 35.93% of the total anchor book, amounting to ₹64.49 crore, was subscribed by three domestic mutual funds through eight schemes. Major participants in the anchor round included ICICI Prudential MF, Whiteoak Capital MF, Mirae Asset MF, and Pinebridge Global Funds, among others.
IPO Details:
- Issue Size: The IPO is a book-built issue totaling ₹600.29 crore. It comprises a fresh issue of 0.22 crore shares worth ₹200 crore and an offer for sale of 0.44 crore shares aggregating ₹400.29 crore by the promoter and investor-selling shareholders.
- Price Band: The price band for the IPO has been set at ₹850 to ₹900 per equity share, with a face value of ₹10.
- Subscription Dates: The IPO will open for subscription on August 19, 2024, and close on August 21, 2024.
- Lot Size: Investors can bid for a minimum of 16 shares, with subsequent bids in multiples of 16 shares.
- Employee Reservation and Discount: The IPO includes a reservation of ₹2 crore for eligible employees, with a discount of ₹85 per share.
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Allocation and Listing: The IPO is structured through a book-building process, with 50% of the offer allocated to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 35% to retail individual investors. The shares are proposed to be listed on both the BSE and NSE, with the listing expected on August 26, 2024.
Company Overview: Interarch Building Products Ltd is a prominent player in India’s pre-engineered steel construction market, offering integrated solutions for design, engineering, manufacturing, and on-site project management. As of March 31, 2023, the company had the second-largest installed capacity in India, at 141,000 metric tonnes per year, and held a 6.1% market share among integrated PEB players.
The company has a diverse customer base across various sectors, including industrial, manufacturing, and infrastructure construction. Key clients include Grasim Industries Ltd, Berger Paints India Ltd, and Blue Star Climatech Ltd. In the financial year ending March 31, 2024, Interarch’s revenue grew by 15%, with a 6% increase in profit after tax.
Investment Considerations: With its strong market position and growing demand for pre-engineered buildings in India, Interarch Building Products presents an attractive investment opportunity. The funds raised through the IPO will support the company’s growth plans, including expanding its production capacity and enhancing its market presence.
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