Interarch Building Products IPO- Investment Rationale, Financials, Peer Comparison, Risks & More: Anand Rathi

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.Interarch Building Products Ltd. launched its initial public offering today and the issue will close for subscription on Aug. 21. The provider of turnkey pre engineered steel construction solutions in India plans to raise Rs 600.3 crore from the ipo and for the same has fixed price band of Rs 850 to Rs 900 per share.The IPO consists of a fresh issue of shares worth Rs 200 crore and an offer-for-sale component of Rs 400.3 crore. The minimum lot size for bidding will be 16 shares..Objects of the fresh issue Financing the capex towards setting up a new PEB manufacturing unit.Financing the capex towards upgradation of TN manufacturing unit. Funding investment in IT assets for upgradation of existing IT infra.Funding incremental working capital requirements.General Corporate purpose..Valuation & Outlook Interarch Building Products is ranked third in operating revenue from the PEB business in the Financial Year 2024 among integrated PEB players in India. Additionally, as of March 31, 2024, their company held the second-largest aggregate installed capacity at 141,000 mtpa, with a 6.5% market share in terms of operating income in Financial Year 2024 among integrated PEB players in India. Their manufacturing operations are highly vertically integrated, allowing them to participate across the entire product lifecycle of PEBs. This includes estimation, design, engineering, and fabrication of PEBs in completely knock-down condition at their manufacturing facilities, as well as the supply and on-site project management for the installation and erection of PEBs at customer sites. The company's P/E ratio is 17.4 times based on its FY24 earnings, with a market capitalization of Rs 14,974.3 million after the issuance of equity shares and a market cap-to-sales ratio of 1.15 times its FY24 earnings. We believe that the issue is fairly priced, therefore we recommend “Subscribe – Long Term” rating to the IPO..Click on the attachment to read the full IPO report:.Interarch Building Sets IPO Price Band At Rs 850–900 Apiece.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Interarch Building Products IPO- Investment Rationale, Financials, Peer Comparison, Risks & More: Anand Rathi

The Rs 600.3 crore IPO launched today and the company has the fixed price band in the range of Rs 850 to Rs 900 per share.

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Interarch Building Products IPO- Investment Rationale, Financials, Peer Comparison, Risks & More: Anand Rathi

The Rs 600.3 crore IPO launched today and the company has the fixed price band in the range of Rs 850 to Rs 900 per share.

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