Interarch Building Products IPO is a book built issue of Rs 600.29 crores. The issue is a combination of fresh issue of 0.22 crore shares aggregating to Rs 200.00 crores and offer for sale of 0.44 crore shares aggregating to Rs 400.29 crores.
Interarch Building Products IPO opens for subscription on August 19, 2024 and closes on August 21, 2024. The allotment for the Interarch Building Products IPO is expected to be finalized on Thursday, August 22, 2024. Interarch Building Products IPO will list on BSE, NSE with tentative listing date fixed as Monday, August 26, 2024.
Interarch Building Products IPO price band is set at ₹850 to ₹900 per share. The minimum lot size for an application is 16 Shares. The minimum amount of investment required by retail investors is ₹14,400. The minimum lot size investment for sNII is 14 lots (224 shares), amounting to ₹201,600, and for bNII, it is 70 lots (1,120 shares), amounting to ₹1,008,000.
Ambit Private Limited and Axis Capital Limited are the book running lead managers of the Interarch Building Products IPO, while Link Intime India Private Ltd is the registrar for the issue.
Interarch Building Products IPO Details
| IPO Date | August 19, 2024 to August 21, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹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) |
| Offer for Sale | 4,447,630 shares of ₹10 (aggregating up to ₹400.29 Cr) |
| Employee Discount | Rs 85 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 14,415,892 |
| Share holding post issue | 16,638,114 |
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 (Tentative Schedule)
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 |
| 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 |
Interarch Building Products IPO Lot Size
Investors can bid for a minimum of 16 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| 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 |
About Interarch Building Products Limited
Incorporated in 1983, Interarch Building Limited provides 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).
As of March 31, 2023, the company had the second-highest installed capacity of 141,000 metric tonnes per year. In the financial year 2023, it also held a 6.1% market share in operating income among integrated PEB players in India.
The company offers PEBs through pre-engineered steel building contracts (“PEB Contracts”) and the sale of pre-engineered steel building materials (“PEB Sales”), including metal ceilings, corrugated roofing, PEB steel structures, and light gauge framing systems.
The company’s industrial/manufacturing construction category customers include Grasim Industries Limited, Berger Paints India Limited, Blue Star Climatech Limited, Timken India Limited, and Addverb Technologies Limited. In the infrastructure construction category, the company serves InstaKart Services Private Limited.
The company has four manufacturing facility out of which two are situated in Sriperumbudur, Tamil Nadu, India, one in Pantnagar, Uttarakhand and and one in and Kichha, Uttarakhand, India.
The company has sales and marketing employees in Chandigarh, Punjab, and Haryana; Lucknow, Uttar Pradesh; Coimbatore, Tamil Nadu; Bhubaneshwar, Odisha; and Raipur, Chhattisgarh.
The company’s Manufacturing Facilities are each accredited as ISO 9001:2015 certified in Quality Management System.
As of September 30, 2023, the company has 111 qualified structural design engineers and detailers in its in-house design and engineering team. On average, these team members have 8.05 years of work experience with the company.
Company Financials
Interarch Building Products Limited Financial Information (Restated)
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 |
| Total Borrowing | 3.36 | 11.38 | 3.36 |
Key Performance Indicator
The market capitalization of Interarch Building Products IPO is Rs 1497.43 Cr.
KPI as of March 31, 2024.
| KPI | Values |
|---|---|
| ROE | 19.40% |
| ROCE | 25.79% |
| Debt/Equity | -0.11 |
| RoNW | 22.26% |
| P/BV | 0 |
Objects of the Issue (Interarch Building Products IPO Objectives)
The company proposes to utilize the Net Proceeds towards funding the following objects (collectively, the “Objects”):
- 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;
- Funding incremental working capital requirements; and
- General Corporate Purposes