Noida-based pre-engineered steel construction solution provider Interarch Building Products Limited, has filed its draft red herring prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The IPO, with a face value of ₹10 per equity share, is a mix of fresh issue of shares of up to ₹200 crore and an offer of sale of up to 4.45 million by the promoter group and investor-selling shareholders.
The offer for sale consists of the sale of equity shares of up to 7.20 lakh by Arvind Nanda, up to 7.90 lakh shares by Gautam Suri, up to 5.40 lakh shares by Ishaan Suri, up to 6 lakh shares by Shobhna Suri, up to 1.80 million by OIH Mauritius Limited. The offer includes a reservation for subscription by eligible employees.
The company, in consultation with the book-running lead managers, might contemplate a private placement of equity shares totaling ₹40 crore, designated as a "pre-IPO placement." Should this placement transpire, it would lead to a reduction in the size of the fresh issue.
The offer is being conducted through the book-building process, with up to 50% of the net offer earmarked for allocation on a proportional basis to qualified institutional buyers. At least 15% of the net offer will be set aside for non-institutional bidders, while a minimum of 35% will be allocated to retail individual bidders.
The proceeds from the fresh issuance, totaling ₹58.53 crore, will be allocated as follows: ₹19.25 crore for upgrading the Kichha Manufacturing Facility, Pantnagar Manufacturing Facility, and Tamil Nadu Manufacturing Facilities; ₹10.97 crore for investing in information technology assets to enhance the Company's existing infrastructure; ₹55 crore for meeting incremental working capital requirements; and for general corporate purposes.
Ambit Private Limited and Axis Capital Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar of the issue.
