Interarch Building Products Limited IPO is a leading provider of turnkey pre-engineered steel construction solutions in India, offering integrated services that include design, engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings (PEBs). According to CRISIL, they ranked third in operating revenue from the PEB business in FY 2023 and held the second-largest installed capacity of 141,000 metric tonnes per annum as of March 31, 2024, with a 6.5% market share among integrated PEB players in India.
Issuance Period :
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.
IPO Size :
Total amount to be raised Rs Rs 600.29 crores.
GMP ( Grey /market Premium )
Current GMP is 395 rupees per share as on 11 august 2024, In Percentage is 43.89%.
Current GMP is 325 rupees per share as on 18 august 2024, In Percentage is 36.11%.
Current price is 330 rupees per share as on 19 august 2024, In Percentage is 36.67%.
Current price is 340 rupees per share as on 20 august 2024, In Percentage is 37.78%.
Current price is 365 rupees per share as on 22 august 2024, In Percentage is 40.56%
Current price is 351 rupees per share as on 23 august 2024, In Percentage is 39.00%.
Lot Size :
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.
IPO Details :
| Details | Description |
|---|---|
| IPO Date | August 19, 2024 to August 21, 2024 |
| Listing Date | [To be announced] |
| 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 (aggregating up to ₹400.29 Cr) |
| Employee Discount | ₹85 per share |
| Issue Type | Book Built Issue |
| Listing At | BSE, NSE |
| Shareholding Pre-Issue | 14,415,892 shares |
| Shareholding Post-Issue | 16,638,114 shares |
Table of Contents
Objectives of the Issue :
- 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
- 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.
- 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.
About Company
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.
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.
Promoters Names:
Arvind Nanda
Viraj Nanda
Gautam Suri
Ishaan Suri
Interarch Building Products Limited Financial Information :
| Financial Metric | Period Ended 31 Mar 2024 | Period Ended 31 Mar 2023 | Period Ended 31 Mar 2022 |
|---|---|---|---|
| Assets | ₹755.01 Cr | ₹675.03 Cr | ₹543.75 Cr |
| Revenue | ₹1,306.32 Cr | ₹1,136.39 Cr | ₹840.86 Cr |
| Profit After Tax | ₹86.26 Cr | ₹81.46 Cr | ₹17.13 Cr |
| Net Worth | ₹262.65 Cr | ₹343.80 Cr | ₹262.65 Cr |
| Total Borrowing | ₹3.36 Cr | ₹11.38 Cr | ₹3.36 Cr |
Here’s a quick look at Interarch Building Products Limited IPO’s strengths, weakness, opportunities and risks.
Strengths and opportunities
1. Established brand presence with an experience of 30 years and third position in India in terms of operating revenue from PEB business in FY24.
2. Vertically integrated manufacturing facilities supported by dedicated design and engineering centers in Noida, Chennai, and Hyderabad.
3. Track record of execution capabilities with major current projects such as big box fulfillment center for a warehousing and logistics service provider, an automotive component manufacturing unit for Timken India, an air conditioning manufacturing unit, and PEBs at 5 locations for Grasim Industries.
4. Customer base operating in diverse industries such as infrastructure construction, industrial/ manufacturing construction, building construction and others.
5. Demonstrated financial performance with EBITDA margins of 3%, 9%, and 8% in FY22, FY23, and FY24, respectively.
Risks and threats
1. Dependent on the same customers as repeat orders made up 81% of its revenue from operations in FY24.
2. Customers do not commit to long-term or continuing contracts and cancel or modify their orders, or postpone or default in their payments.
3. Operates in a cyclical industry and is affected by seasonal variations which affects the consistency of its results.
4. Manufacturing facilities concentrated in the states of Tamil Nadu and Uttarakhand, exposing it to social, political, economic or seasonal risks.
5. Benefits from the National Steel Policy and withdrawal might affect its finances.
6. Inability to collect trade receivables will affect its operations as they amass to ₹218 crore as of FY24.
7. Has incurred indebtedness totalling to ₹298 crore as of 31 May 2024.