Interarch Building Products Share Price Highlights: Stock settles 7.3% lower after listing at 44.3% premium on NSE

Proceeds from the fresh issue will be used for capital expenditures, system upgrades and general corporate purposes.

• Current price: ₹1,222.8 (-5.8%)
• Listing price: ₹1,299
• Issue price: ₹900
• Total m-cap: ₹2,034.8 crore

• Dependent on the same clients as repeat orders made up 81% of its revenue in FY24.
• Customers do not commit to long-term or continuing contracts, cancel or modify their orders, or postpone or default on their payments.
• It operates in a cyclical industry and is affected by seasonal variations, affecting its results' consistency.
• Manufacturing facilities in Tamil Nadu and Uttarakhand expose it to social, political, economic or seasonal risks.
• Benefits from the National Steel Policy (NSP) and withdrawal might affect its finances.
• Inability to collect trade receivables will affect its operations as they amass to ₹218 crore as of FY24.
• Has incurred indebtedness totalling ₹298 crore as of May 31, 2024.

• Established brand presence and third position in India in terms of operating revenue from pre-engineered buildings (PEB) business in FY24.

• Vertically integrated manufacturing units are supported by dedicated design and engineering centres in Chennai, Hyderabad, and Noida.

• Track record of execution capabilities with major current projects like an automotive component manufacturing unit for Timken India, a big box fulfilment centre for a warehousing and logistics service provider, an air conditioning (AC) manufacturing unit, and PEBs at five locations for Grasim Industries.

• The customer base operates in diverse industries, such as industrial/ manufacturing construction, infrastructure construction, and building construction.

• Demonstrated financial performance with EBITDA margins of 3%, 9%, and 8% in FY22, FY23, and FY24, respectively.

The ₹600-crore public offer received bids for 43,87,96,464 equity shares against 46.91 lakh shares on offer.

The part for qualified institutional buyers or QIBs fetched 205.41 times subscription while the portion for non-institutional investors (NIIs) attracted 128.42 times subscription. The retail investors category got subscribed 19.11 times.

The IPO, with price range fixed at ₹850-₹900 per share, was a fresh issue of ₹200 crore and an offer for sale of up to 44,47,630 equity shares.

The fresh issue proceeds will be utilised for system upgrades, capital expenditures, and general corporate purposes.

Interarch Building Products is one of the leading turnkey pre-engineered steel construction solution providers in India with integrated facilities for design and engineering, manufacturing and on-site project management capabilities for the installation and erection of pre-engineered steel buildings.