Interarch Building Products IPO: Key Details on Price Band, GMP, and Financial Performance Before Listing

Interarch Building Products is launching its initial public offering (IPO) on August 19, and it will be open for subscription until August 21. The company aims to raise about ₹600 crore through this public offer. Here’s a simplified rundown of 10 key points to know before considering an investment in the Interarch Building Products IPO:

1) What Does Interarch Building Products Do?
Interarch Building Products specializes in designing, manufacturing, and selling pre-engineered steel buildings. They offer these buildings through PEB (pre-engineered buildings) contracts, providing a complete package including on-site project management for installation and assembly at customer locations.

2) What is the Industry Background?
Pre-engineered steel construction is gaining popularity due to advancements in construction automation. The global market for pre-engineered steel buildings was valued at around $16-17 billion in 2022 and is expected to grow at an 11-12% annual rate (CAGR) through 2027.

3) What is the Current Grey Market Premium (GMP)?
Analysts report that Interarch Building Products currently has a GMP of ₹375 in the unlisted market, suggesting a 42% premium over the issue price.

4) What is the Size of the IPO?
The IPO includes a fresh issue of shares worth ₹200 crore, along with an offer for sale (OFS) of up to 44.47 lakh shares.

5) What is the Price Range for the IPO?
The price band for the IPO is set between ₹850 and ₹900 per share, with a minimum bid of 16 shares per lot.

6) How is the IPO Structured?
The public offer is divided as follows: 50% is reserved for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors.

7) How is Interarch Building Products Performing Financially?
In the fiscal year 2024, Interarch’s revenue from operations grew to ₹1,293.30 crore, up from ₹1,123.93 crore the previous year. This increase was driven by higher revenue from pre-engineered building contracts and sales expansion in West Bengal and Telangana. Profit after tax rose from ₹81.46 crore in FY23 to ₹86.26 crore in FY24.

8) What Will the IPO Funds Be Used For?
The proceeds from the fresh issue will be used to finance capital expenditures, upgrade manufacturing facilities, invest in information technology assets, meet working capital needs, and for general corporate purposes.

9) Who is Managing the IPO?
Ambit Private and Axis Capital are the lead managers for the IPO, while Link Intime India is handling the registrar duties.

10) When are the Share Allotment and Listing Dates?
The share allotment is expected to be finalized on August 22, with the listing anticipated on August 26.