Noida-based Interarch Building Products Ltd, a leading provider of turnkey pre-engineered steel construction solutions, has set a price band of ₹850-900 per share for its upcoming initial public offering (IPO), which will open for subscription on August 19.
The offering consists of a fresh issue of shares valued at ₹200 crore, along with an offer for sale (OFS) of up to 44.48 lakh shares by existing promoters and shareholders. The OFS is estimated to be worth around ₹400 crore at the upper price band.
The net proceeds from the fresh issuance will be used for capital expenditures, system upgrades, and general corporate purposes.
Half of the issue size is allocated for qualified institutional investors, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors. Additionally, investors can place bids for a minimum of 16 equity shares, with increments in multiples of 16 shares.
Interarch Building Products stands out as a top provider of turnkey pre-engineered steel construction solutions in India. They offer comprehensive services, including design and engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings.
For the fiscal year 2023, Interarch Building Products Ltd experienced a 34.6% rise in operational revenue, totaling ₹1,123.93 crore, up from ₹834.94 crore the previous year. This growth was fueled by increased revenue from pre-engineered building contracts and product sales, supported by a broader sales and marketing presence in West Bengal and Telangana, as well as expansion into new sectors. Additionally, profit after tax skyrocketed by 375.54%, reaching ₹81.46 crore compared to ₹17.13 crore the previous year.
For the six months ending September 30, 2023, the company reported revenue from operations of ₹591.53 crore and a profit after tax of ₹34.57 crore. As of September 30, 2023, the company's order book amounted to ₹1,036.27 crore.
Ambit Pvt Ltd and Axis Capital Ltd are the lead managers for the issue. The equity shares are expected to be listed on both BSE and NSE.
