August 19, 2024
New Delhi, India
The Rs 600.29 crore initial public offering (IPO) of Interarch Building Products Limited has opened for bidding today, August 19, 2024. The IPO, which includes a fresh share issue worth Rs 200 crore and an offer-for-sale (OFS) of up to 44,47,630 equity shares by promoters and existing shareholders, is set to close on Wednesday, August 21, 2024.
IPO Details:
- Price Band: The company has set a fixed price band of Rs 850-900 per equity share.
- Lot Size: Investors can bid for a minimum of 16 equity shares and in multiples of 16 thereafter.
- IPO Size: The total IPO size is Rs 600.29 crore, with Rs 200 crore coming from the fresh share sale and Rs 400.29 crore through the OFS.
- Anchor Investors: Ahead of the IPO, Interarch raised Rs 179.5 crore by issuing 19,94,288 shares at Rs 900 per share to anchor investors, including Whiteoak Capital, Mirae Asset, Pinebridge Global Funds, LC Pharos Multi Strategy Fund, ICICI Prudential Mutual Fund, and Eastspring Investments India.
Use of Proceeds: The net proceeds from the IPO will be utilized for:
- Capital Expenditure: Financing the establishment of a new pre-engineered building (PEB) manufacturing unit and upgrading existing facilities.
- Investment in IT Assets: Enhancing the company’s technological capabilities.
- Working Capital: Meeting incremental working capital requirements.
- General Corporate Purposes: Supporting various corporate initiatives.
Company Overview: Founded in 1983, Interarch Building Products is a leading provider of turnkey pre-engineered steel construction solutions in India. The company’s offerings include design, engineering, manufacturing, and on-site project management for PEB installations.
As of March 31, 2023, Interarch had the second-highest installed capacity among integrated PEB players in India, with a total capacity of 141,000 metric tonnes per year and a 6.1% market share in operating income. The company’s customer base spans various sectors, including industrial and infrastructure construction, with clients like Grasim Industries, Berger Paints, Blue Star Climatech, and InstaKart Services.
Financial Performance: For the financial year ended March 31, 2024, Interarch reported:
- Revenue: Rs 1,306.32 crore, up from Rs 1,136.39 crore in FY23.
- Net Profit: Rs 86.26 crore, compared to Rs 81.46 crore in the previous year.
- Market Position: Interarch is ranked third in operating revenue from PEB business among integrated PEB players in India, with a market cap of Rs 1,497.43 crore post-IPO.
Grey Market Premium (GMP): Interarch Building Products shares are trading at a premium of Rs 312 in the grey market, indicating strong investor interest ahead of the IPO listing according to market observers.
Important Dates:
- IPO Opening Date: August 19, 2024
- IPO Closing Date: August 21, 2024
- Allotment Date: August 22, 2024
- Listing Date: August 26, 2024
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