Interarch Building Products IPO: Steel major mobilises ₹179 crore from anchor investors ahead of subscription

Interarch Building Products IPO: Interarch Building Products Ltd has raised ₹179.49 crore from anchor investors ahead of its IPO subscription opening for bidding. The steel construction solutions provider's initial public offering (IPO) is all set to hit the D-Street for its three-day subscription on Monday, August 19, and will close on August 21. The price band for the IPO has been fixed in the range of ₹850 to ₹900 per equity share with a face value of ₹10.

The company informed the bourses that on Friday, August 16, 2024, it allocated 19,94,288 equity shares at Rs. 900 per share to anchor investors. Out of the total allocation of 19,94,288 equity shares to the anchor investors, 7,16,592 equity shares were allocated to three domestic mutual funds through a total of 8 schemes amounting to Rs. 64.49 crore, i.e. 35.93 per cent of the total anchor book size.

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Foreign and domestic institutions who participated in the anchor round were ICICI Prudential MF, Whiteoak Capital MF, Mirae Asset MF, 3P India MF, Pinebridge Global Funds, LC Pharos MF, SBI General Insurance, Eastspring Investment India, Bajaj Allianz Insurance Company, Chartered Finance & Leasing Ltd, Bengal Finance and Investment, Aryabhata MF, Carnelian Capital Compounder Fund, Societe Generale, and Subhkam Ventures (I) Pvt. Ltd.

Interarch Building Products IPO Details

Interarch Building Products IPO is a book-built issue worth ₹600.29 crore. It consists of a fresh issue of 0.22 crore shares aggregating ₹200.00 crore and an offer for sale of 0.44 crore shares aggregating ₹400.29 crore by promoter-selling shareholders and investor-selling shareholders. 

The offer includes a reservation of ₹2 crore for eligible employees and an employee discount of ₹85 per share. The IPO will fetch ₹600.29 crore at the upper end of the price band. Investors can bid for a minimum of 16 equity shares and in multiples of 16 equity shares thereafter.

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The offer is being made through the book-building process, wherein not more than 50 per cent shall be available for allocation to qualified institutional buyers (QIBs), not less than 15 per cent of the net offer shall be available for allocation to non-institutional investors (NIIs), and not less than 35 per cent o shall be available for allocation to retail individual investors.

Ambit Private Limited and Axis Capital Limited are the book-running lead managers, and Link Intime India Private Limited is the offer's registrar. The equity shares are proposed to be listed on the BSE and NSE.

Interarch Building Products Company Details

Interarch Building Products Limited is one of the leading turnkey pre-engineered steel construction solution providers in India. It has integrated facilities for design and engineering, manufacturing, and on-site project management capabilities for the installation and erection of pre-engineered steel buildings (PEBs).

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As of March 31, 2023, the company had the second-highest installed capacity of 141,000 metric tonnes per year. In the financial year 2023, it also held a 6.1 per cent market share in operating income among integrated PEB players in India.

The company's industrial/manufacturing construction category customers include Grasim Industries Ltd, Berger Paints India Ltd, Blue Star Climatech Ltd, Timken India Ltd, and Addverb Technologies Ltd. In the infrastructure construction category, the company serves InstaKart Services Private Ltd.

Interarch Building Products Limited's revenue increased by 15 per cent, and profit after tax rose by six per cent between the financial year ending with March 31, 2024 and March 31, 2023.