Interarch Building Products IPO: Here's how much the company raised in anchor round ahead of subscription

On Friday, August 16, the company informed the stock exchanges that it allocated around 19.94 lakh equity shares to anchor investors at price of ₹900 apiece.

Out of the total allocation, 35.93% or about 7.16 lakh equity shares were allotted to eight domestic mutual funds. These shares were worth ₹64.49 crore.

The entities that participated in anchor investment round included domestic and foreign domestic institutions, such as Bajaj Allianz Insurance Company, Chartered Finance & Leasing Ltd, Bengal Finance and Investment, ICICI Prudential MF, Aryabhata MF, Carnelian Capital Compounder Fund, SBI General Insurance, and Eastspring Investment India.

IPO size & dates

The Noida-based Interarch Building Products, which offers turnkey pre-engineered steel construction solutions, will launch the initial share sale on Monday, August 19. The subscription window will close on Wednesday, August 21. The price band has been fixed in the range of ₹850-900 per share.

The IPO would comprise a fresh issue of shares worth ₹200 crore, along with an offer-for-sale (OFS) of up to 44.48 lakh shares.

At the upper end of the IPO price band, the OFS could fetch the company around ₹400 crore. This takes the overall issue size to around ₹600 crore.

The book-running lead managers for the initial share sale will be Ambit Private Limited and Axis Capital Limited.

According to Interarch Building, the net proceeds from the fresh issue will be used towards addressing general corporate purposes related expenses, system upgrades, and for capital expenditures.

Interarch Building's financials

In the first half of FY24 or the six-month period ending September 30, 2023, Interarch Building had reported a net profit of ₹34.57 crore, and a revenue from operations of ₹591.53 crore. The order book was worth ₹1,036.27 crore as of the date.

For the full financial year ended March 31, 2023, the company had reported a 34.6% jump in revenue from operations at ₹1,123.93 crore, as against ₹834.94 crore in FY22. The net profit had grown nearly four-fold to ₹81.46 crore from ₹17.13 crore in the preceding fiscal year.