Interarch Building Products IPO - AstroIPO

Interarch Building Products IPO


August 14, 2024 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

Interarch Building Products Ltd., a prominent name in the steel and iron products industry, is preparing to enter the public market with its Initial Public Offering (IPO) scheduled from August 19 to August 21, 2024. This book-built issue aims to raise between ₹566.94 crore and ₹600.29 crore.

The company has set the price band at ₹850 to ₹900 per share, with a face value of ₹10. Interarch Building Products is offering 66.70 lakh shares to the public. The maximum retail application amount is capped at ₹500,000.

Upon completion of the IPO process, Interarch Building Products will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), providing liquidity options for potential shareholders.

As a steel and iron products manufacturer, Interarch Building Products operates in a sector that’s fundamental to India’s infrastructure and construction growth.

Interarch Building Products IPO Details

IPO Size 600.29
Price Range ₹850 - ₹900
Retail Quota 35%
QIB Quota 50%
NII Quota 15%
Employee Discount ₹85 per share
Listing at NSE and BSE
Minimum Quantity 16
Investment (cut-off price) ₹14,400
Pre IPO Promotor Holding 87.53%
Post IPO Promotor Holding --
DHRP Draft Click Here
RHP Draft Click Here
Anchor Investors List Click Here

Interarch Building Products IPO Timelines

19/08/2024
Start Date
21/08/2024
End Date
22/08/2024
Allotment Date View Status
23/08/2024
Refund Initiation
23/08/2024
Credit of Shares to Demat Ac
26/08/2024
Listing Date

Interarch Building Products IPO Lot Size

Application Lot Size Shares Amount
Retail Minimum 1 16 ₹14,400
Retail Maximum 13 208 ₹187,200
S-HNI Minimum 14 224 ₹201,600
B-HNI Minimum 70 1120 ₹1,008,000

Interarch Building Products IPO Subscription Status

QIB NII Retail EMP Total
197.29 x 130.84 x 19.36 x -- 93.72 x

IPO Performance on Listing Day

Opening Price Closing Price Day High Day Low
₹1299 ₹1195.70 ₹1314.80 ₹1179.05

Interarch Building Products IPO Company Financials

Year Total Income Total Expense PAT
FY 2022 ₹840.86 ₹818.27 ₹17.13
FY 2023 ₹1136.39 ₹1027.44 ₹81.46
FY 2024 ₹1306.32 ₹1190.43 ₹86.26

About Company

Interarch Building Products Limited is one of India’s leading providers of turnkey pre-engineered steel construction solutions. The company offers a comprehensive range of services, including design, engineering, manufacturing, on-site project management, and installation of pre-engineered steel buildings (PEBs). Interarch was ranked third in terms of operating revenue from PEB business in the Financial Year 2023 and held the second-largest aggregate installed capacity in the sector as of March 31, 2024, with a market share of 6.5%.

Interarch’s PEBs are custom-designed to meet customer requirements and serve various sectors, including industrial, infrastructure, and building (residential, commercial, and non-commercial) applications. The company has a strong track record, completing 677 PEB contracts between the Financial Year 2015 and 2024. These projects range from multi-level warehouses for e-commerce to manufacturing units for the FMCG sector and large-span PEBs for indoor stadiums and the cement industry.

Four manufacturing facilities support the company’s operations, with a total installed capacity of 141,000 metric tonnes per annum. Additionally, three design and engineering centers ensure that the PEBs meet the highest standards of efficiency and compliance. Interarch’s commitment to quality and innovation has been recognised through multiple awards, including the ‘Pre-Engineered Building Project of the Year’ in 2022.

With plans to expand its manufacturing capacity further. The company’s experienced management team continues to drive its success in the competitive market.

Incorporation Date Sector Managing Director
1983 Construction Arvind Nanda

Know Before Investing

Interarch Building Products IPO Strengths

  • Interarch Building is ranked third in operating revenue among PEB players in FY 2024.
  • The company holds the second-largest installed capacity of 141,000 MTPA in India’s PEB industry.
  • Interarch operates eight sales and marketing offices across India to serve its diverse customer base.
  • The company has completed 677 PEB contracts from FY 2015 to FY 2024, showcasing extensive experience.
  • Interarch’s vertically integrated manufacturing covers all stages, from design to on-site installation.
  • The company has been recognised with multiple awards, including ‘Pre-Engineered Building Company of the Year’ in 2022.

Interarch Building Products IPO Risks

  • Interarch is highly dependent on the availability and cost of steel, making price volatility a significant threat.
  • Any disruption in the supply chain of raw materials can adversely impact Interarch Building Products Limited’s business and financial health.
  • Interarch Limited’s reliance on a few key suppliers poses a concentration risk that could affect production if these suppliers fail to deliver.
  • Loss or reduction in repeat orders can significantly impact the revenue of Interarch Building Products Limited.
  • Interarch Limited faces risks from potential disruptions or slowdowns in its manufacturing operations.
  • Outsourcing services to third parties introduces risks, as any failure in their service delivery can negatively affect the company.

Swot Analysis for Interarch Building Products IPO

Strengths

Weaknesses

Opportunities

Threats

Company Details

Interarch Building Products Limited

Farm No. 8, Khasara No. 56/23/2,
Dera Mandi Road
Mandi Village, Mehrauli, New Delhi -110047,

Phone: +91-12041 70200

Email: [email protected]

Website: https://www.interarchbuildings.com/

IPO Registar Details

Link Intime India Private Ltd

Phone: +91-22-4918 6270

Email: [email protected]

Website: https://linkintime.co.in/initial_offer/public-issues.html

FAQs

The key objectives of Interarch Building Products IPO are:

  • Allocate ₹585.33 million to establish a new PEB manufacturing unit in Andhra Pradesh, enhancing its production capacity.
  • Invest ₹192.46 million to modernise its Kichha, Tamil Nadu I & II, and Pantnagar manufacturing facilities for improved efficiency.
  • A total of ₹113.92 million is earmarked for upgrading the company’s information technology systems, which will ensure better operational support.
  • ₹550 million will be directed towards boosting the company’s working capital, supporting its day-to-day operations.
  • The remaining funds will be used for general corporate purposes.

Ambit Pvt Ltd.Axis Capital Ltd. is the book-running lead managers for the Interarch Building Products IPO.

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