Interarch Building Products Limited’s Initial Public Offering to open on Monday, August 19, 2024, price band set at ₹850/- to ₹900/- per Equity Share

 

Interarch Building Products Limited’s Initial Public Offering to open on Monday, August 19, 2024, price band set at ₹850/- to ₹900/- per Equity Share

Mumbai, August 13, 2024: Interarch Building Products Limited, one of the leading turnkey pre-engineered steel construction solution providers in India with integrated facilities for design and engineering, manufacturing, and on-site project management capabilities for installation and erection of pre-engineered steel buildings (“PEB”), has fixed the price band of ₹850/- to ₹900/- per Equity Share of face value ₹10/- each for its maiden initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Monday, August 19, 2024, for subscription and close on Wednesday, August 21, 2024. Investors can bid for a minimum of 16 Equity Shares and in multiples of 16 Equity Shares thereafter.

The IPO consists of fresh issue of up to Rs 200 crore and an offer for sale (OFS) of up to 44,47,630 equity shares by Promoter Selling Shareholders and Investor Selling Shareholder.

 

The proceeds from the fresh issue, to the extent of Rs 58.53 crore for financing the capital expenditure towards setting up the Project, Rs 19.25 crore for financing the capital expenditure towards upgradation of the Kichha Manufacturing Facility, Tamil Nadu, Manufacturing Facility I, Tamil Nadu Manufacturing Facility II and Pantnagar Manufacturing Facility, Rs 11.39 crore for funding investment in information technology assets for upgradation of existing information technology infrastructure of the Company, Rs 55 crore for funding incremental working capital requirements and General corporate purposes.

 

Interarch Building Products was incorporated in 1983 and has more than three decades of experience in the pre-engineered steel buildings (PEB) industry, under the brands, “TRAC®” and “TRACDEK®”. Over the years, the company has evolved into a turn-key PEB solutions provider, with integrated facilities for design and engineering, manufacture, and on-site project management capabilities for the installation and erection of PEBs supplied by the company which enable it to deliver end-to-end solutions to its customers.

 

The company's PEB offerings are categorized into pre-engineered steel building contracts ("PEB Contracts") and the sale of pre-engineered steel building materials ("PEB Sales"). PEB Sales includes sale of metal ceilings and corrugated, under the brand, “TRAC®”, metal roofing and cladding

systems under the brand, “TRACDEK®” and permanent/metal decking (lost shuttering) over steel framing under the brand, “TRACDEK® Bold-Rib”; supply of PEB steel structures under the brand, “Interarch Life” and light gauge framing systems (“LGFS”).

 

Interarch's customers under the industrial/manufacturing construction category include Grasim Industries Limited, Berger Paints India Limited, Blue Star Climatech Limited, Timken India Limited and Addverb Technologies Limited and infrastructure construction category includes InstaKart Services Private Limited.

 

As of March 31, 2024, Interarch Building Products' Order Book stood at ₹ 1,153.29 crore.

 

Interarch Building Products Limited’s revenue from operations during the fiscal year 2024 increased to Rs 1,293.30 crore from Rs 1,123.93 crore in the previous year, primarily due to an increase in revenue generated from pre-engineered building contracts and sale of products by expanding its sales and marketing presence in West Bengal and Telangana and diversification into new sectors/industries. Profit after tax grew from Rs 81.46 crore for the Financial Year 2023 to Rs 86.26 crore for the Financial Year 2024.

 

Ambit Private Limited, and Axis Capital Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

 

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the net offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

 

Notes for Reference:

Issue Size of the IPO based on the upper and lower end of the price band

	Fresh (Rs 200 crore)	OFS (44,47,630 equity shares)	Total
Lower Band (@Rs 850)	Rs 200 crore	Rs 378.05 crore	Rs 578.05 crore
Upper Band (@Rs 900)	Rs 200 crore	Rs 400.29 crore	Rs 600.29 crore