Interarch Building Products Limited IPO

NiftyTrader • August 13, 2024

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Interarch Building Products Limited IPO opens on August 19, 2024, and closes on August 21, 2024. The allotment for the Interarch Building Products Limited IPO is anticipated to be completed on Thursday, August 22, 2024. The IPO will be listed on the BSE and NSE, with a tentative date set for Monday, August 26,2024.

The Interarch Building Products Limited IPO’s price band is Rs 850 to Rs 900 per share. The IPO is a book-built issue of Rs 600.29 crores, entirely a fresh issue of 0.22 crores shares.

Interarch Building Products IPO Details

IPO Date	August 19, 2024 to August 21, 2024
Listing Date	[.]
Face Value	₹10 per share
Price	₹850 to ₹900 per share
Lot Size	16 Shares
Total Issue Size	6,669,852 shares (aggregating up to ₹600.29 Cr)
Fresh Issue	2,222,222 shares (aggregating up to ₹200.00 Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Shareholding pre-issue	14,415,892
Shareholding post-issue	16,638,114
Employee Discount	Rs 85 per share
Offer for Sale	4,447,630 shares of ₹10 (aggregating up to ₹400.29 Cr)

Interarch Building Products IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	16	₹14,400
Retail (Max)	13	208	₹187,200
S-HNI (Min)	14	224	₹201,600
S-HNI (Max)	69	1,104	₹993,600
B-HNI (Min)	70	1,120	₹1,008,000

Interarch Building Products IPO Objectives

The company proposes to utilize the Net Proceeds towards funding the following objects (collectively, the “Objects”):

Purchase of Machineries;
General Corporate Purpose.
Financing the capital expenditure towards setting up a new PEB manufacturing unit (classified as Phase 2 of the capacity development plan at the Planned Andhra Pradesh Manufacturing Facility) (“Project”)
Financing the capital expenditure towards the upgradation of the Kichha Manufacturing Facility, Tamil Nadu Manufacturing Facility I, Tamil Nadu Manufacturing Facility II and Pantnagar Manufacturing Facility;
Funding investment in information technology (“IT”) assets for upgrading the company’s existing information technology infrastructure;

About Interarch Building Products Limited

Interarch Building Limited, established in 1983, is a key player in India’s pre-engineered steel construction industry. The company provides comprehensive turnkey solutions, encompassing design, engineering, manufacturing, and on-site project management for pre-engineered steel buildings (PEB). With a significant market presence, Interarch held a 6.1% market share in FY 2023, boasting the second-largest installed capacity of 141,000 metric tonnes per year. Their offerings include PEB Contracts and PEB Sales, featuring products like metal ceilings, corrugated roofing, and light gauge framing systems, catering to prominent clients such as Grasim Industries, Berger Paints, and InstaKart Services.

Interarch operates four ISO 9001:2015 certified manufacturing facilities across Tamil Nadu and Uttarakhand, supported by a sales network in key regions like Punjab, Uttar Pradesh, Tamil Nadu, Odisha, and Chhattisgarh. Their in-house design and engineering team, consisting of 111 qualified structural design engineers and detailers, averages over eight years of experience with the company, ensuring high-quality and efficient project execution.

Interarch Building Products Limited Financial Information

Interarch Building Products Limited’s revenue increased by 15% and profit after tax (PAT) rose by 6% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	755.01	675.03	543.75
Revenue	1,306.32	1,136.39	840.86
Profit After Tax	86.26	81.46	17.13
Net Worth	262.65	343.8	262.65
Reserves and Surplus	3.36	11.38	3.36

Interarch Building Products IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50.00% of the Net offer
Retail Shares Offered	Not less than 35.00% of the Offer
NII (HNI) Shares Offered	Not less than 15.00% of the Offer

Interarch Building Products IPO Timeline

Interarch Building Products IPO opens on August 19, 2024, and closes on August 21, 2024.

IPO Open Date	Monday, August 19, 2024
IPO Close Date	Wednesday, August 21, 2024
Basis of Allotment	Thursday, August 22, 2024
Initiation of Refunds	Friday, August 23, 2024
A credit of Shares to Demat	Friday, August 23, 2024
Listing Date	Monday, August 26, 2024
Cut-off time for UPI mandate confirmation	5 PM on August 21, 2024

Conclusion

The Interarch Building Products Limited IPO presents an investment opportunity for a key player in India’s pre-engineered steel construction industry. With a price band of Rs 850 to Rs 900 per share, the IPO aims to raise Rs 600.29 crores through a combination of fresh issues and offers for sale. The funds will be utilized to purchase machinery, upgrade manufacturing facilities, and enhance IT infrastructure. The IPO opens on August 19, 2024, and closes on August 21, 2024, with the listing expected on August 26, 2024. Investors can participate in this book-built issue with a minimum investment of Rs 14,400.