Explore the key details of Interarch Building Products’ IPO
Interarach Building Products has published that its IPO is going to be open on 19th August and will end on 21st August. It is a leading provider of integrated, high-quality pre-engineered steel construction solutions. It aims to gather INR 600.29 crores; it consists of INR 200.00 Crore fresh issue and INR 400.29 Cr offer for sale.
Table of Contents
- Company Overview
- Company Strategy
- Details on IPO Date and Price Band
- IPO Objective
- Market Lot Information on Interarch Building Products IPO
- Allotment Dates for Interarch Building Products IPO
- Application Process of IPO
- Financial Analysis of Company
- IPO Valuation
- Competitor Analysis
- Registrar for Interarch Building Products IPO
- Offer Lead Manager
- Company Address
Company Overview
Interarch Building Products offers pre-engineered metal buildings, building parts and sections, and steel structures as a manufacturer and turnkey vendor. Interarch was established in 1984 and has been a leader in offering metal construction services through the incorporation and application of efficient engineering methods, sophisticated production technology, and unique design solutions. This company deals in the steel trade and manufacturing of building fabrications, providing pre-engineered buildings, roofing systems, facades, and mezzanine floors for industrial, commercial, and institutional sectors. Through quality, sustainable, and customer-oriented solutions, Interarch has established itself as a leading architectural building solutions provider with unmatched service delivery.
Company Strategy
Interarch Building Products’ strategy aims to become a premium solution provider of pre-engineered building solutions. Focusing on high engineering and modern manufacturing technology. It has a vision to offer specialized, optimized, and environmentally friendly building systems in various segments. Research and development is an important area that the company continues to fund as a means of ensuring that it is in touch with the latest trends and technology. The company has strict quality control measures that are effective in making sure customers are satisfied and hold long-term business with the company. Expanding into new markets as well as constant enhancement of the company’s product portfolio also contribute to Interarch’s growth, thus solidifying its position as a market leader in the industry of metal building construction.
Details on IPO Date and Price Band
| IPO Open: | August 19, 2024 |
| IPO Close: | August 21, 2024 |
| IPO Size: | Approx INR 600.29 Crore |
| Offer for Sale: | Approx INR 400.29 Crore |
| Fresh Issue: | Approx INR 200 |
| Face Value: | INR 10 Equity Per Share |
| IPO Price Band: | INR 850 to INR 900 Per Equity Share |
| IPO Listing on: | NSE SME |
| IPO Discount: | Employee: 85.00 |
| Promoter Holding Pre IPO: | 87.53% |
| Promoter Holding Post IPO: | N/A |
IPO Objective:
The IPO objective for Interarch Building Products is to gain a better market position and brand recognition in the growing precast steel market in India. The funds will permit additional synchronization of manufacturing processes, aided by internal design, engineering, and local project management teams. The investment will build on sales and marketing organizational capacity and ensure that success in one project transfers directly to the next. The IPO will also enable the utilization of a diverse customer base as well as strong key customer relationships. Interarch wants to carry out its IPO strategy from a sound financial base, combined with a firm order backlog, as a way to sustain and build on its status as a market leader in the delivery of metal building construction.
Market Lot Information on Interarch Building Products IPO
The lot size and corresponding amounts are as follows:
| Issue Price: | INR 850 – INR 900 |
| Market Lot: | 16 Shares |
| Cost of 1 Lot: | INR 14,400 |
| Minimum Small HNI lots | 224 Shares (14 lots) – INR 2,01,600 |
| Minimum Big HNI lots | 1120 Shares (70 lots) – INR 10,08,000 |
Allotment Dates for Interarch Building Products IPO
Interarch Building Products IPO open date is August 19 and the IPO close date is August 21. The IPO allotment date is August 22 and the listing date is August 26.
| IPO Open Date: | August 19, 2024 |
| IPO Close Date: | August 21, 2024 |
| Basis of Allotment: | August 22, 2024 |
| Refunds: | August 23, 2024 |
| Credit to Demat Account: | August 23, 2024 |
| IPO Listing Date: | August 26, 2024 |
Application Process of IPO
The IPO can be accessed by submitting an application through the online ASBA (Application Supported by Blocked Amount) facility from the bank through ‘Internet banking’, going to ‘Invest’, and applying for the Interarch Building Products. On the other hand, the IPO forms are also available for download on the NSE and BSE websites which the candidates can fill and submit.
Financial Analysis of the Company
Financials in INR Crores.
| Year | Asset | Revenue | PAT | Net Worth | Total Borrowing |
| 2022 | 534.75 | 840.86 | 17.13 | 262.65 | 3.36 |
| 2023 | 675.03 | 1,136.39 | 81.46 | 343.8 | 11.38 |
| 2024 | 755.01 | 1,306.32 | 86.26 | 262.65 | 3.36 |
The company has shown significant growth from 2022 to 2024. Assets increased from INR 534.75 crore in 2022 to INR 755.01 crore in 2024, while revenue rose from INR 840.86 crore to INR 1,306.32 crore. PAT surged from INR 17.13 crore to INR 86.26 crore, reflecting improved profitability. However, net worth saw a notable fluctuation in 2024, returning to INR 262.65 crore from INR 343.8 crore in 2023. Total borrowings remained low, with a peak of INR 11.38 crore in 2023, dropping back to INR 3.36 crore in 2024. Thus, the company indicates good financials with substantial revenue and profit growth despite fluctuations in net worth.
IPO Valuation
The company’s EPS stands at a value of INR 58.68 with a Return on Net Worth (RoNW) of 22.26% and a Net Asset Value (NAV) of INR 268.8. The IPO price band range of INR 850-900 to raise INR 6000.29 crore, to enhance its market position and brand presence in India and gain a competitive advantage in the precast steel industry.
| Earning Per Share (EPS): | INR 58.68 per Equity Share |
| Price/Earning P/E Ratio: | 15.04 |
| Return on Net Worth (RoNW): | 22.26% |
| Net Asset Value (NAV): | INR 268.8 |
Competitor Analysis
Everest Industries Ltd
Everest Industries Limited is an established Indian firm dealing in building solutions and providing roofing, ceiling, wall, flooring, and cladding solutions, amongst others. It was founded in 1934 and it is a leading firm in the production of new-generation building materials for residential, commercial, and industrial construction with high quality that complies with international standards. The company is a market leader in terms of technology as well as its distribution network across the length and breadth of India.
Pennar Industries Ltd.
Pennar Industries Limited is a leading engineering company in India engaged in providing precision engineering solutions and steel products. This company was founded in 1975 and currently enjoys being involved in the production and supply of a broad assortment of products, such as cold-rolled steel, steel strips, engineered components, and pre-engineered building systems in the automotive, engineering, rail, and infrastructure sectors. The company has emphasized the need to create innovative and quality products, hence making it famous for providing high-performance products that meet customers’ specific needs.
Other Lead Manager
Axis Capital Limited
Axis Capital Limited is a leading India-based financial services provider that is engaged in investment banking and institutional equities. It is a wholly-owned subsidiary of Axis Bank and it is involved in advisory services such as equity capital markets, mergers and acquisitions, private equity advisory, and structured finance. Axis Capital enjoys a market leadership position with the company widely recognized for its proficiency in the management of IPOs, QIPs, and other capital mobilization activities. It aims to offer the best solutions to its clients based on its vast experience in the market, industry expertise, and a team of professionals.
Ambit Private Limited
Ambit Private Limited is among the leading financial service providers in India with a focus on investment banking, asset management, wealth management, and institutional equity. Established as a leading financial advisory firm, Ambit offers exceptional knowledge in almost every industry along with unique strategic and financial solutions that encompass mergers and acquisition advisory, private equity, corporate finance, and capital market products. The firm offers its services to a wide range of customers such as corporations, financial institutions, and high-net-worth individuals, and helps to increase their value in the market.
Conclusion
Interarch Building Products’ upcoming IPO presents a significant opportunity for investors, opening from August 19th to August 21st, 2024. With a strong financial track record and a strategic focus on expanding its pre-engineered building solutions, the company aims to raise INR 600.29 crores. The IPO is poised to strengthen Interarch’s market position and drive future growth in the rapidly expanding construction industry.
