The initial public offering (IPO) of Interarch Building Products will open for subscription on August 19. The issue closes on August 21. Through the public offer, the company plans to raise around Rs 600 crore. Here are 10 things to know about the Interarch Building Products IPO before subscribing to the issue.
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1) What is the business overview of Interarch Building Products?
The company designs, manufactures and sells pre-engineered steel buildings and offer them by way of PEB contracts, wherein we provide complete PEBs on a turn-key basis to customers, and also provide on-site project management for installation and erection at customers’ sites.
2) What is the industry overview of Interarch Building Products?
Pre-engineered steel construction has emerged as an innovative building method due to the rapid growth of automation in the construction industry. The global pre-engineered steel buildings market is estimated at $16-17 billion as of calendar year 2022 and is expected to clock at 11-12% of CAGR over the medium term till 2027.
3) What is the current GMP of Interarch Building Products?
According to market analysts, the current GMP of Interarch Building Products is Rs 375 in the unlisted market, indicating a premium of 42% to the issue price.
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4) What is the size of Interarch Building Products IPO?The IPO comprises a fresh issue of shares worth Rs 200 crore and an offer for sale (OFS) of up to 44.47 lakh shares.
5) What is the price band for Interarch Building Products IPO?
The IPO is priced in the range of Rs 850-900 per share, where investors can bid for 16 shares in one lot.
6) What is the structure of Interarch Building Products IPO?
About 50% of the public offer is reserved for qualified institutional buyers, 35% for retail investors, and the rest 15% for non-institutional investors.
7) How is the financial performance of Interarch Building Products?
Its revenue from operations during the fiscal year 2024 increased to Rs 1,293.30 crore from Rs 1,123.93 crore in the previous year, primarily due to an increase in revenue generated from pre-engineered building contracts and sale of products by expanding its sales and marketing presence in West Bengal and Telangana and diversification into new sectors/industries. Profit after tax grew from Rs 81.46 crore for the FY23 to Rs 86.26 crore for the FY24.
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8) What are the objects of Interarch Building Products IPO?
The proceeds from the fresh issue will be utilised for financing the capital expenditure towards setting up the project, upgradation of various manufacturing facilities, funding investment in information technology assets, incremental working capital requirements and general corporate purposes.
9) Who are the book-running lead managers for Firstcry IPO?
Ambit Private, and Axis Capital are the book-running lead managers to the issue, while Link Intime India is the registrar to the offer.
10) When is the share allotment and listing date of Firstcry IPO?
The share allotment for the IPO will likely be finalised on August 22 and the company is anticipated to list on stock exchanges on August 26.
