Interarch Building Products IPO

Interarch Building Products IPO: Subscription Opens with Price Band, Lot Size, and Essential Information

IPO Details:

Issue Type: A mix of fresh issuance and an offer-for-sale (OFS)
Total IPO Size: ₹600 crore
- Fresh Issue: ₹200 crore
- Offer-for-Sale: 44.47 lakh equity shares worth ₹400 crore
Price Band: ₹850-₹900 per share
IPO Open Date: Monday, August 19, 2024
IPO Close Date: Wednesday, August 21, 2024

IPO Timeline:

Bidding Dates: August 19, 2024, to August 21, 2024
Allotment Finalization: Thursday, August 22, 2024
Refund Initiation: Friday, August 23, 2024
Credit of Shares to Demat Accounts: Friday, August 23, 2024
Listing Date: Monday, August 26, 2024
Cut-off Time for UPI Mandate Confirmation: 5 PM on August 21, 2024

Lot Size:

Minimum Lot Size: 16 shares
Retail Allocation: 35% of the issue
QIB Allocation: 50% of the issue
NII Allocation: 15% of the issue

Use of Proceeds:

Capital expenditure
System upgrades
General corporate purposes

Key Investors in Anchor Round:

Chartered Finance & Leasing Ltd
Bajaj Allianz Insurance Company
Bengal Finance and Investment
ICICI Prudential Mutual Fund (MF)
Carnelian Capital Compounder Fund
Aryabhata MF
Eastspring Investment India
SBI General Insurance

About the Company:

Interarch Building Products is a leading provider of turnkey pre-engineered steel construction solutions in India. The company offers comprehensive services, including design and engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings.

Financial Performance:

Revenue from Operations FY24: ₹1,293.3 crore (up from ₹1,123.93 crore in FY23)
Net Profit FY24: ₹86.26 crore (up from ₹81.46 crore in FY23)
Order Book: Over ₹1,153 crore as of March 31, 2024

Advantages

Strong Order Book: The company has a substantial order book of over ₹1,153 crore, indicating strong future revenue potential.
Leading Market Position: As a leading provider of pre-engineered steel construction solutions, Interarch has a well-established market presence.
Comprehensive Service Offerings: The company’s integrated approach, offering design, manufacturing, and on-site project management, provides a competitive edge.
Financial Growth: The company has shown consistent revenue and profit growth, reflecting its robust business model.

Disadvantages

Market Dependency: The company’s performance is heavily dependent on the construction sector, which can be cyclical and sensitive to economic conditions.
Customer Concentration Risk: A significant portion of the company’s revenue may be reliant on a few key clients, posing a potential risk if any of these clients reduce their business.
High Competition: The construction solutions market is competitive, with several players offering similar services, which could impact profit margins.
IPO Risk: The IPO’s success depends on market conditions, and a less favorable response could impact the company’s valuation and future plans.

Conclusion

Interarch Building Products’ IPO presents a significant opportunity for investors interested in the pre-engineered steel construction sector. With a robust order book, steady revenue growth, and a strong presence in the industry, the company is well-positioned to capitalize on the increasing demand for steel construction solutions in India. However, potential investors should carefully consider the advantages, disadvantages, and key risks associated with the IPO before making any investment decisions. As with any IPO, it is crucial to conduct thorough research and consult with financial advisors to ensure the investment aligns with one’s financial goals and risk tolerance.

FAQs

What is the price range for the Interarch Building Products IPO?
- The price range is ₹850-₹900 per share.
What is the minimum investment required for retail investors?
- Retail investors need to bid for a minimum lot of 16 shares.
What are the dates for the Interarch Building Products IPO?
- The IPO opens on August 19, 2024, and closes on August 21, 2024.
When will the shares be credited to Demat accounts?
- Shares will be credited on August 23, 2024.
When is the listing date for Interarch Building Products shares?
- The shares are expected to be listed on August 26, 2024.
Who are the lead managers for this IPO?
- Axis Capital Ltd and Ambit Pvt Ltd are the book-running lead managers.
What is the Grey Market Premium (GMP) for the Interarch Building Products IPO?
- The GMP information is currently unavailable.