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Introduction To Interarch Building Products IPO
The Interarch Building Products IPO is a book-built issue worth Rs 600.29 crores in total. It consists of a fresh issue of 0.22 crore shares valued at Rs 200.00 crores and an offer for sale of 0.44 crore shares valued at Rs 400.29 crores.
The IPO opens for subscription on August 19, 2024, and closes on August 21, 2024. The allotment of shares is expected to be finalised on Thursday, August 22, 2024. The IPO will be listed on BSE and NSE. This listing is tentatively scheduled for Monday, August 26, 2024.
The Interarch Building Products IPO price band for each share ranges from Rs 850 to Rs 900. The minimum number of shares for application is 16. Retail investors need to invest a minimum of Rs 14,400. Small non-institutional bidders (sNII) investors must invest in 14 lots (224 shares) amounting to Rs 2,01,600. Meanwhile, big non-institutional bidders (bNII) investors must invest in 70 lots (1,120 shares) amounting to Rs 10,08,000.
Ambit Private Limited and Axis Capital Limited are the book-running lead managers for Interarch Building Products’ IPO. Link Intime India Private Ltd is the registrar for the issue.
Interarch Building IPO Details:
| Particulars | Details |
| IPO Date | August 19, 2024 to August 21, 2024 |
| Face Value | Rs 10 per share |
| Interarch Building Products IPO Price Band | Rs 850 to Rs 900 per share |
| Interarch Building Products Lot Size | 16 Shares |
| Interarch Building Products IPO Total Issue Size | 6,669,852 shares (aggregating up to Rs 600.29 Cr) |
| Fresh Issue | 2,222,222 shares (aggregating up to Rs 200.00 Cr) |
| Offer for Sale | 4,447,630 shares of Rs 10 (aggregating up to Rs 400.29 Cr) |
| Employee Discount | Rs 85 per share |
| Issue Type | Book Built Issue IPO |
| Interarch Building Products Listing At | BSE, NSE |
| Share-holding pre-issue | 1,44,15,892 |
| Share-holding post issue | 1,66,38,114 |
Tentative Dates of IPO Events in Interarch Building Products Ltd
| Particulars | Tentative dates |
| 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 |
| The credit of Shares to Demat | Friday, August 23, 2024 |
| Interarch Building Listing Date | Monday, August 26, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 21, 2024 |
The Investor categories and shares offered
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Application sources – Interarch Building Products Ltd IPO Lot Size and their value
| Application | Lots | Shares | Amount (in Rs) |
| Retail (Min) | 1 | 16 | 14,400 |
| Retail (Max) | 13 | 208 | 1,87,200 |
| S-HNI (Min) | 14 | 224 | 2,01,600 |
| S-HNI (Max) | 69 | 1,104 | 9,93,600 |
| B-HNI (Min) | 70 | 1,120 | 10,08,000 |
Interarch Building Products Limited – Company details
Since 1983, Interarch Building Limited has been a reliable supplier of complete pre-engineered steel construction solutions in India. The company’s wide-ranging offerings include design. Engineering. Production and on-site project supervision for assembly and raising of pre-engineered steel buildings (PEB)
As of March 31, 2023, Interarch Building Limited had positioned itself as a significant contender in the industry. It holds the second-highest installed capacity of 141,000 metric tonnes annually. Additionally, in 2023, the company achieved a noteworthy 6.1% market share in operating income among integrated PEB players in India.
The company provides PEBs through contracts for pre-engineered steel buildings (“PEB Contracts”). It also engages in the sale of materials for pre-engineered steel buildings (“PEB Sales”). These include metal ceilings, corrugated roofing, PEB steel structures and light gauge framing systems.
The company’s industrial/manufacturing construction clients include Grasim Industries Limited, Berger Paints India Limited, Blue Star Climatech Limited, Timken India Limited and Addverb Technologies Limited. InstaKart Services Private Limited is also served by a company in the infrastructure construction sector.
The company has manufacturing facilities in four locations: two in Sriperumbudur, Tamil Nadu, India; one in Inha, Uttarakhand; and one in Pantnagar, Uttarakhand.
Employees who handle sales and marketing operations are located in Chandigarh, Punjab Haryana; Lucknow, Uttar Pradesh; Coimbatore, Tamil Nadu; Bhubaneshwar, Odisha; and Raipur, Chhattisgarh.
Each manufacturing facility is certified as compliant with the ISO 9001:2015 standard for Quality Management Systems. As of September 30, 2023, the company employs 111 skilled structural design engineers and detailers in its internal design and engineering team. On average, these team members have 8.05 years of experience working with the company.
Financials Of Interarch Building Products:
Major financials for the year ended March 31 2022. March 31, 2023. And March 31 2024.
| Period Ended | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
| Assets (Rs in crores) | 755.01 | 675.03 | 543.75 |
| Revenue (Rs in crores) | 1,306.32 | 1,136.39 | 840.86 |
| Profit After Tax (Rs in crores) | 86.26 | 81.46 | 17.13 |
| Net Worth (Rs in crores) | 262.65 | 343.8 | 262.65 |
| Total Borrowing (Rs in crores) | 3.36 | 11.38 | 3.36 |
Key performance indicators and their values
| Key performance indicator (KPI) | Values |
| Return on Equity (ROE) | 19.40% |
| Return on capital employed (ROCE) | 25.79% |
| Debt/Equity | -0.11 |
| Return on net worth (RoNW) | 22.26% |
| P/BV | 0 |
Objectives of Interarch Building Products IPO
The company plans to use Net Proceeds for financing the following purposes:
1) Securing funds needed to establish a new PEB manufacturing facility as part of Phase 2 of an expansion plan for the planned Andhra Pradesh Manufacturing Facility (“Project”)
2) Financing capital expenditure for enhancement of Kichha Manufacturing Facility, Tamil Nadu Manufacturing Facility I, Tamil Nadu Manufacturing Facility II and Pantnagar Manufacturing Facility
3) Funding investment in information technology (“IT”) assets to upgrade the company’s current information technology infrastructure
4) Providing funds for additional working capital needs
5) For general corporate purposes.
Interarch Building Products Ltd IPO GMP
The most recent Grey Market Premium (GMP) for Interarch Building Products IPO is Rs 345. Information is updated as of 10:32 AM on August 16 2024. Considering the price range for IPO is Rs 850 to Rs 900, the anticipated listing price is Rs 1245 (upper price band + current GMP). This implies an expected per-share gain or loss of 38.33%.
The retail price subject to cauda for Interarch Building Products IPO is Rs 4200. The small HNI price subject to cauda for Interarch Building Products IPO is Rs 58800.
Interarch Building Products IPO RHP Details – Risks associated
1) The company’s success depends heavily on the availability and cost of raw materials, including steel. Any supply disruptions or price volatility may negatively impact operations, cash flows and financial health.
2) Underutilisation of manufacturing capacities can lead to inefficiencies and increased costs. This impacts the business’s overall productivity and profitability. Additionally, the inability to effectively utilise expanded capacities can result in missed opportunities. These include revenue generation and market share expansion. This situation may also affect the company’s future financial performance and cash flows. It poses risks to long-term sustainability and growth prospects.
3) Business customers sometimes commit to short-term contracts. They may cancel or change orders. They might need to be able to make payments. These actions could hurt cash flow, revenues and earnings. The company relies on a few customer groups. Repeat orders account for most of the revenue.
4) The company’s operations rely on its manufacturing facilities. They will continue to depend on them. The manufacturing process poses certain risks. Any interruptions, delays, or cessation of manufacturing operations could hurt the company’s business. This includes financial condition, the results of operations, and cash flows.
5) Insurance policies may not be adequate to cover all losses incurred in business. An inability to maintain sufficient insurance coverage may protect us from adverse material incidents in connection with our company. This situation may adversely affect our business results. It may also impact operations, financial conditions, and cash flows.
Frequently Asked Questions (FAQs)
What is the latest Interarch Building Products Ltd IPO GMP?
Interarch Building Products IPO’s latest Grey Market Premium (GMP) stands at Rs 345. This data was last updated at 10:32 AM on August 16, 2024.
What is Interarch Building Products Ltd IPO Price Band?
Each share’s Interarch Building Products IPO price band ranges from Rs 850 to Rs 900.
What are Interarch Building Products Ltd’s owner details?
Interarch Building Products’ owners are promoters Arvind Nanda, who serves as managing director, and Gautam Suri, the company’s full-time director. Non-Executive Directors include Viraj Nanda and Ishaan Suri.
Is Interarch Building Products Limited ISO certified?
Yes, the company is ISO 9001:2015 standard certified for Quality Management Systems (QMS).
Name a source from which you can obtain the Red herring prospectus (RHP) of the above IPO.
The RHP of Interarch Building Products Limited IPO can be downloaded from the company’s website and SEBI’s website.
Name a source from which you can draft the Red Herring (DRHP) prospectus for the above IPO.
You can download the DRHP of Interarch Building Products Limited IPO from SEBI’s website.
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