Interarch Building Products Limited is coming up with an IPO worth INR 600.29 crores, consisting of a fresh issue of 0.22 crore shares worth INR 200 crores and an offer to sell 0.44 shares worth INR 400.29 crores. The company aims to finance new projects, upgrade facilities, and enhance IT to meet working capital needs and general corporate purposes. 

Interarch Building Products IPO – Important Dates 

Interarch Building Products IPO – Company Profile 

Interarch Building Products Limited is a leading turnkey pre-engineered steel construction solution provider in India. It ranks third in operating revenue and second in installed capacity. The company has extensive experience in diverse PEB projects across industries. 

Offers turnkey PEB contracts with on-site management and sales of pre-engineered steel building materials, such as metal ceilings, roofing, PEB structures, and light gauge framing systems, under various brands. 

Manufacturing products in-house across four facilities with a capacity of 141,000 MTPA, the company supports operations with design centers, on-site management, and plans for expansion in Andhra Pradesh and Gujarat to enhance capabilities. 

Interarch Building Products Ltd IPO Fundamental Analysis 

Interarch Building Products Limited’s financial analysis reveals a mixed performance. Revenue increased significantly, with rising profitability and EPS. However, increased debt reliance, lower liquidity, and a higher inventory turnover ratio indicate growth and challenges. 

1. Revenue Trend: The revenue increased from ₹8,349.43 million in March 2022 to ₹11,239.26 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 12,933.02 million. 

2. Equity and Liabilities: Both equity and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 

3. Profitability: The profit after tax (PAT) has increased from ₹171.33 million in March 2022 to ₹862.62 million by March 2024. The rise in profitability could be a source of confidence for investors. 

4. Earnings per Share (EPS): The diluted EPS has also increased from ₹11.42 in March 2022 to ₹58.68 by March 2024, reflecting higher earnings per share for investors. 

5. Return on Net Worth (RoNW): The RoNW has risen from 6.52% to 22.26%, indicating an increase in the company’s ability to generate returns on shareholder equity.

6. Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 

7. Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover   Ratio, which might suggest stronger sales or efficient inventory management. 

Interarch Building Products IPO Financial Analysis 

Interarch Building Products IPO Peer Comparison 

Interarch Building Products Limited shows strong performance with high EPS and return on net worth, outperforming Everest Industries Limited and Pennar Industries Limited in profitability. However, Everest Industries leads in market capitalization. 

Interarch Building Products Ltd IPO Objective 

The main objective of Interarch Building Products Limited is to finance the expansion and upgrade of manufacturing facilities, invest in IT infrastructure, and support incremental working capital requirements for continued growth and development. 

1. Financing the capital expenditures to set up a new pre-engineered steel building manufacturing unit at the Planned Andhra Pradesh Manufacturing Facility: The company intends to utilize ₹58.53 crores from the Net Proceeds to set up a new 40,000 MTPA PEB manufacturing unit in Andhra Pradesh, covering construction, civil work, and machinery purchases. 

2. Financing the capital expenditure towards upgrading the Kichha, Tamil Nadu, Manufacturing Facility I, Tamil Nadu, Manufacturing Facility II, and Pantnagar Manufacturing Facilities: The company plans to utilize INR 19.25 crores from the Net Proceeds to upgrade the Kichha, Tamil Nadu, I, Tamil Nadu II, and Pantnagar Manufacturing Facilities, as approved by the Board, to enhance operational capacity and efficiency. 

3. Funding investment in information technology assets for expansion of the company’s existing information technology infrastructure: The company aims to utilize INR 11.39 crores from the Net Proceeds to upgrade IT infrastructure, including implementing SAP S/4 HANA for enhanced ERP integration, efficiency, and coordination across manufacturing and business processes. 

4. Funding incremental working capital requirements: The company plans to utilize ₹55 crores from the Net Proceeds, approved by the Board, to fund working capital needs to support business operations and financial projections for FY 2025 and FY 2026. 

5. General Corporate Purposes: The company plans to use the net proceeds for general corporate purposes, including funding growth opportunities, strengthening marketing and brand-building efforts, addressing ongoing contingencies, and covering employee and other personnel expenses. 

Interarch Building Products IPO Risks And Challenges 

Interarch Building Products Limited’s risk includes significant exposure to steel price fluctuations, reliance on limited suppliers, and potential under-utilization of new facilities, which could negatively impact production, cash flows, and financial performance. 

• The company’s significant reliance on steel exposes it to commodity price fluctuations, influenced by global events and supply challenges. With no long-term supply agreements, rising steel costs impact cash flows and pricing strategies for fixed-price customer orders. 

• Despite the current high capacity utilization for critical components, the company’s planned expansions in Andhra Pradesh and Gujarat may not achieve similar levels. Capacity utilization is crucial for profitability, and disruptions or under-utilization could adversely affect financial performance. 

• Dependence on a limited number of suppliers for essential raw materials, particularly steel, exposes the company to significant risks. Disruptions or supplier changes could adversely affect production, customer relations, and financial health. 

Interarch Building Products Ltd IPO – Industry & Market Potential 

Infrastructure investments are projected to rise from ₹29-31 trillion (FY 2020-2024) to ₹51-53 trillion (FY 2025-2029), driven by NIP, NMP, and Gati Shakti. Road projects, railways, and urban infrastructure will see significant growth. 

The global pre-engineered buildings market, valued at $19-21 billion in 2023, is projected to grow at a CAGR of 10.5-11.5% to $32-34 billion by 2028, driven by rising demand for green buildings and off-site construction. 

The Indian pre-engineered steel buildings industry grew at a ~8.0% CAGR from ₹130 billion (FY 2019) to ₹195 billion (FY 2024). Driven by infrastructure investments, it is expected to expand at 11.0-12.0% CAGR to ₹330-340 billion by FY 2029. 

Interarch Building Products IPO – Type of Offer 

Interarch Building Products Limited plans a fresh issue of shares, seeking INR 200 crores to finance new projects, upgrade facilities, enhance IT, and meet working capital needs and general corporate needs. Additionally, the company proposes an offer for sale, intending to sell 0.44 crore existing shares.

1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 200 crores. The company intends to utilize the proceeds from the fresh issue to finance new projects, upgrade facilities, enhance IT, meet working capital needs, and general corporate purposes. 
2. Offer for sale: Interarch Building Products Limited is offering to sell 0.44 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:

Interarch Building Products IPO Offer Size 

The offer size of Interarch Building Products Limited is INR 600.29 crores, consisting of a fresh issue of 0.22 crore shares worth INR 200 crores and an offer to sell 0.44 shares worth INR 400.29 crores. The company seeks funds to finance new projects, upgrade facilities, and enhance IT to meet working capital needs and general corporate purposes. 

Interarch Building Products IPO Allotment Structure 

Interarch Building Products Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for the Interarch Building Products IPO?

To apply for the Interarch Building Products Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Interarch Building Products Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Interarch Building Products Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Interarch Building Products IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Interarch Building Products Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Interarch Building Products Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Interarch Building Products Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Interarch Building Products Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Interarch Building Products Ltd IPO Offer Registrar

The registrar for the Interarch Building Products Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Link Intime India Private Limited

C- 101, 1st Floor, 247 Park, L.B.S Marg, 

Vikhroli (West), Mumbai – 400083,

Maharashtra, India

Telephone: +91 810 811 4949, 

Email: [email protected] 

Website: www.linkintime.co.in 

Interarch Building Products IPO – FAQs 

1. What is the allotment date of the Interarch Building Products IPO? 

The allotment date of the Interarch Building Products Limited IPO is August 22, 2024. 

2. What is the price band of the Interarch Building Products IPO? 

The price band of the issue is INR 850-900 per share. 

3. What is the size of the Interarch Building Products IPO? 

The offer size of Interarch Building Products Limited is INR 600.29 crores, consisting of a fresh issue of 0.22 crore shares worth INR 200 crores and an offer to sell 0.44 shares worth INR 400.29 crores. The company seeks funds to finance new projects, upgrade facilities, and enhance IT to meet working capital needs and general corporate purposes. 

4. What is the listing date of the Interarch Building Products IPO? 

The listing date of Interarch Building Products Limited’s IPO is August 26, 2024.