Interarch Building Products IPO: Subscription To Open On August 19; Price Band Set At Rs 850-900/Sh

Noida-based Interarch Building Products Ltd, a player in the pre-engineered steel construction industry, is set to launch its much-anticipated Initial Public Offering (IPO) on August 19. The company, known for providing comprehensive turnkey steel construction solutions, has set the price band for its IPO at Rs 850-900 per share, sparking considerable interest in the financial markets.

The upcoming IPO of Interarch Building Products is structured to include both a fresh issue of shares valued at Rs 200 crore and an Offer for Sale (OFS) component of up to 44.48 lakh shares by existing promoters and shareholders. The OFS, based on the upper price band, is projected to raise around Rs 400 crore, bringing the total issue size to approximately Rs 600 crore.

The fresh issue aims to raise capital for strategic purposes, including capital expenditures, system upgrades, and general corporate needs. This infusion is expected to boost the company's operational capacity.

Interarch's IPO is structured to attract a diverse group of investors. Half of the issue size is reserved for qualified institutional buyers (QIBs), ensuring that major financial players have a stake in the company's future. Retail investors, who have shown growing interest in the equity markets, are allocated 35% of the issue, while non-institutional investors (NIIs) are set to receive 15%.

Investors can place bids for a minimum of 16 equity shares, with further bids required to be in multiples of 16 shares. This approach is typical for IPOs of this nature, allowing both small and large investors to partake according to their investment capacity.

Interarch Building Products Ltd has established itself as a leader in India's pre-engineered steel construction sector. The company offers an end-to-end service model that includes design, engineering, manufacturing, and on-site project management, making it a preferred choice for clients seeking efficient and reliable construction solutions. Its expertise extends to the installation and erection of pre-engineered steel buildings, a niche that has seen growth in recent years due to the demand for faster and more cost-effective construction methods.

For the fiscal year 2023, the company reported a 34.6% increase in operational revenue, which surged to Rs 1,123.93 crore from Rs 834.94 crore in the previous fiscal year. This growth was primarily driven by an uptick in revenue from pre-engineered building contracts and product sales. The company's expansion into new geographical regions such as West Bengal and Telangana, coupled with forays into new industry sectors, further fueled this growth.

Even more noteworthy was the company's profit after tax, which soared by a staggering 375.54%, reaching Rs 81.46 crore in FY2023, compared to Rs 17.13 crore in the previous fiscal year.

For the first half of the current fiscal year ending September 30, 2023, Interarch reported revenue from operations of Rs 591.53 crore and a profit after tax of Rs 34.57 crore. The company's order book, a key indicator of future revenue, stood at Rs 1,036.27 crore as of the same date.

Post-IPO, Interarch Building Products Ltd's shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), offering liquidity and trading flexibility to investors. The IPO is being managed by Ambit Pvt Ltd and Axis Capital Ltd, two of India's leading investment banking firms.