Interarch Building Sets IPO Price Band At Rs 850–900 Apiece

The initial public offering of Interarch Building Products Ltd. to raise Rs 600.3 crore will open for subscription next week with a price band of Rs 850 to Rs 900 per share.

The public issue consists of a fresh issue of shares worth Rs 200 crore and an offer-for-sale component of Rs 400.3 crore, according to the red herring prospectus. The market value at the upper end of the price band for the issue is valued at Rs 1,497.4 crore.

The minimum lot size for bidding will be 16 shares, with further bids to be made in multiples. Arvind Nanda, Gautam Suri, Ishaan Suri, and Shobhna Suri will be among the promoters selling shareholders during the public offering.

The issue will open for subscription on Aug. 19 and close on Aug. 21. Bidding for the anchor portion will open for a day on Aug. 16. Ambit Pvt. and Axis Capital Ltd. are the book-running lead managers for the issue.

The company is not simply a sleep fabricator and contractor but a very important capital goods supplier to the clients, Managing Director Arvind Nanda told NDTV Profit. "That is how we have been perceived over the last 20 years by the leading names in India."

The company's product is industry, geography and building agonistic. It has not seen this kind of demand from the private sector, Nanda said. "The growth is coming from all kinds of sectors.... What we have seen in the last three years is mind-blowing."

Of the net proceeds from the fresh issue, Rs 58.5 crore will be used to fund a manufacturing facility in Andhra Pradesh. Approximately Rs 19.3 crore will be invested in upgrading facilities in Kichha and Pantnagar in Uttarakhand, and two units in Tamil Nadu.

The company will invest Rs 10.97 crore to upgrade its information technology infrastructure, and another Rs 55 crore to fund incremental working capital requirements.

Interarch Building is a provider of turnkey pre-engineered steel construction solutions in India. It offers integrated facilities for design, engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings.

The company is ranked third in terms of operating revenue from popular pre-engineered business in financial year 2023 in India, according to the company's prospectus. It also has the second largest aggregate installed capacity of 1.41 lakh tonnes per annum as of March 31, 2023.

The company has four manufacturing facilities, of which two are situated in Sriperumbudur, one in Pantnagar and one in Kichha.