Interarch Building Products IPO: Check price band, business model, financials & other details

Interarch Building Products Limited IPO (Interarch Building Products IPO) is scheduled to open for subscription on Monday, August 19. The promoters of the company are Arvind Nanda, Gautam Suri, Ishaan Suri and Viraj Nanda. The promoters collectively hold 87.53% stake in the company, ahead of the public issue.

The investors looking forward to participate in the Interarch Building Products IPO subscription should check all the important factors before bidding. Here are the key details about the mainboard public offer.

Interarch Building Products IPO: Offer size, price band and lot size

Interarch Building Products IPO is a book-building issue worth ₹600.2 crore. The steel construction solutions provider’s public issue consists of a fresh issue of 22.2 lakh shares worth ₹200 crore and an offer-for-sale of 44.4 lakh shares, amounting to ₹400.2 crore.

Interarch Building Products IPO price band has been fixed at ₹850 to ₹900 per share. The minimum lot size for an application is 16 Shares. The minimum amount of investment required by retail investors is ₹14,400.

Interarch Building Products IPO subscription window will open on Monday, August 19, and close on Wednesday, August 21. The share allotment status is likely to be finalised on Thursday, August 22. Interarch Building Products shares will be listed on the NSE and BSE. The tentative listing date for the IPO is Monday, August 26.

Interarch Building Products has reserved 50% of the net offer for Qualified Institutional Buyers. As much as 35% of the net issue has been set aside for the retail category, and 15% has been kept aside for the Non-Institutional Investors (NIIs) category.

Interarch Building Products IPO: Key financials and major clients

Interarch Building Products’ revenue grew by nearly 15% to ₹1,306.3 crore in FY24 compared to ₹1,136.3 crore in FY23. The company’s profit-after-tax increased nearly 6% to ₹86.26 crore in FY24 compared to ₹81.46 crore in FY23. Interarch Building Products’ net worth decreased over 23% to ₹262.65 crore compared to ₹343.8 crore in FY23.

Interarch Building Products is a turnkey pre-engineered steel construction solution provider in which offers facilities for design and engineering, manufacturing and on-site project management capabilities for the installation and erection of pre-engineered steel buildings (PEB). The company also held a 6.1% market share in operating income among integrated PEB players in India in the financial year 2022-2023.

In its draft red herring prospectus, the company mentioned that the pre-engineered steel building market caters to sectors such as industrial, manufacturing, infrastructure, and buildings (residential, commercial, and non-commercial).

Interarch Building Products' clients in the industrial and manufacturing construction category include Grasim Industries Limited, Berger Paints India Limited, Blue Star Climatech Limited, Timken India Limited, and Addverb Technologies Limited. The company’s key clients in the infrastructure construction category include InstaKart Services Private Limited.

Interarch Building Products IPO: Business model

According to its DRHP, Interarch Building Products primarily follows a business-to-business (B2B) model. The B2B model is based on standalone purchase orders, which contain the commercial terms of supply, such as price, delivery location, payment terms, and warranty-related terms, which warrant conformity of products to specifications, drawings, or descriptions approved by the customers.

The company offers PEBs through pre-engineered steel building contracts (PEB Contracts) and the sale of pre-engineered steel building materials (PEB Sales), including metal ceilings, corrugated roofing, PEB steel structures, and light gauge framing systems.

About Interarch Building Products

Interarch Building Products was incorporated in 1983. The company provides turnkey pre-engineered steel construction solutions and has four manufacturing facilities in Tamil Nadu, Uttarakhand, and Uttarakhand.

Interarch Building Products IPO objective

Interarch Building Products plans to use the money raised via the public issue to set up a new PEB manufacturing unit and upgrade one of its manufacturing facilities. The proceeds will also be used to fund investment in information technology (IT) assets and incremental working capital requirements. The money will also be used for general corporate purposes.