Interarch Building Plans Capacity Expansion With Rs 1,300 Crore Order Book In Hand
The company's capacity addition is on track, with expansion of Gujarat operations and building of a new plant in Andhra Pradesh.
Interarch Building Products Ltd. has an order book of Rs 1,300 crore and expects faster growth in the pre-engineered steel construction business as manufacturing activity picks up with India's rapid economic ascendancy, Managing Director Arvind Nanda said on Monday.
The customers include semiconductors, data centres, FMCG, renewables, automobiles and warehousing sectors. The company manufactures pre-engineered steel structures in its plants and then assembles them at client locations.
"Our current order book is nearly Rs 1,300 crore and growing fast. We are holding back on new orders as the pre-engineered steel construction business requires delivery within 10 months," Nanda told NDTV Profit.
Nanda said the government's manufacturing push through schemes like Make in India and Production-Linked Incentives will boost demand for the company's products.
To meet such demand, the company's capacity addition is on track, with the expansion of Gujarat operations and the building of a new plant in Andhra Pradesh.
"Phase 1 of a production facility in Andhra Pradesh will be completed in a week, while the second phase will finish by March next year. Land acquisition has been done for its Gujarat project and based on demand, production capacity will be added starting in August next year," Nanda said.
Interarch 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.
Of the net proceeds from the fresh issue, Rs 58.5 crore will be used to fund a manufacturing facility in Andhra Pradesh.
Shares of Interarch opened on the National Stock Exchange at Rs 1,299 per share, a premium of 44% over the issue price of Rs 900 apiece. The scrip debuted at Rs 1,291.2 per share on the BSE, marking a premium of 43%.
The Rs 600.3-crore initial public offering was subscribed 93.53 times on its third and final day, led by demand from institutional investors and non-institutional investors.
