Interarch Building Products Limited

About Interarch Building Products Limited

Incorporated in 1983, Interarch Building Products Limited is a leading provider of pre-engineered steel construction solutions in India. As of 31 March 2024, the company has the second-largest installed capacity of 141,000 MTPA and a market share of 6.5%  in terms of operating income in FY24. 

Its product portfolio includes pre-engineered steel buildings (PEB) contracts and PEB sales. Under contracts, it offers complete PEBs on a turn-key basis, along with on-site project management expertise. Under PEB sales, it offers metal ceilings and corrugated roofing, steel structures, and light gauge framing systems. More than 75% of the company’s revenue comes from PEB contracts, while product sales contribute the rest.  

Interarch Building Products has four manufacturing facilities in Tamil Nadu and Uttarakhand. The company also owns and operates brands like “TRAC®” and “TRACDEK®.”

It caters to projects such as setting up multi-level warehouses for e-commerce customers, paint production lines for paint manufacturers, and manufacturing units for FMCG companies. It has also supplied large-span PEBs for indoor stadiums, and customers engaged in the cement industry. Between FY15 and FY24, it completed the execution of 677 PEB contracts.

Some of its customers include Grasim Industries, Berger Paints India, Timken India and Addverb Technologies. It has long-standing relationships with its customers, with repeat orders making up 81% of its revenue from operations in FY24.  

The PEB market in India can be divided into three broad end-use segments: industrial/ manufacturing construction, infrastructure, and buildings (residential and commercial). In terms of revenue contribution, the infrastructure segment contributes 30.5% to overall revenue, while industrial/manufacturing contributes 68.5% to the company’s revenue.   

Between FY22 and FY24, it saw a CAGR rise of 15% in its revenue from operations and 71% in its profit. Moreover, the Indian PEB industry is expected to grow at a CAGR of 11-12% between FY24 and FY29, which could benefit the company. 

And now, Interarch Building Products Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹600.29 crore, comprising fresh issue, aggregating to ₹200 crore, as well as an offer for sale, aggregating to ₹400.29 crore. The money raised from the fresh issue will be utilised to set up manufacturing facilities, invest in IT assets, work capital requirements, and general corporate purposes. Its shares will be listed on the NSE and BSE.

Here are key details about the Interarch Building Products IPO:

Financial snapshot

Here’s a quick look at Interarch Building Products Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

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.

Interarch Building Products Limited IPO details

| Interarch Building Products Limited IPO date

According to the offer document filed by the company with the SEBI, the Interarch Building Products IPO’s opening date – in other words, the Interarch Building Products IPO launch date – will be 19th August 2024. The Interarch Building Products IPO closing date is 21st August 2024. After this, investors will be updated about the allotment status on 22nd August 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on 23rd August 2024. The Interarch Building Products IPO listing date is 26th August 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE. 

| Interarch Building Products Limited IPO Price Band

The IPO is a fresh issue and an offer for sale. The Interarch Building Products IPO price band has been set between ₹850 and ₹900 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Interarch Building Products IPO listing price will be determined on 26th August 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

| Interarch Building Products Limited IPO Lot size

The Interarch Building Products IPO details have been declared. The Interarch Building Products IPO lot size is set at 16 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Interarch Building Products IPO issue size is approx ₹600 crore. 

How to pre-apply for the Interarch Building Products Limited IPO?

You can pre-apply for the Interarch Building Products Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Interarch Building Products Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Interarch Building Products Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Interarch Building Products Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Interarch Building Products Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Interarch Building Products Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Interarch Building Products Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Interarch Building Products Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Interarch Building Products Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Interarch Building Products Limited IPO

To apply for the Interarch Building Products Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Interarch Building Products Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Interarch Building Products Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.