MUMBAI: Interarch Building Products Ltd, based in Noida and known for its steel construction solutions, and Gala Precision Engineering Ltd, a manufacturer of metal components, have received approval from the Securities and Exchange Board of India (SEBI) to launch their Initial Public Offerings (IPOs).
Interarch Building Products IPO Details
Interarch aims to sell 44.47 lakh (4.45 million) shares through an offer for sale (OFS). Their IPO will combine this OFS with a fresh issue of shares worth ₹200 crore. Each share will have a face value of ₹10. Interarch filed its draft prospectus with SEBI on 18 March 2024.
The promoters selling their shares in Interarch include Arvind Nanda, Gautam Suri, Ishaan Suri, and Shobhna Suri, along with investor OIH Mauritius Limited.
Interarch may also go for a pre-IPO placement to raise up to ₹40 crore. If they do this, the size of the fresh issue will be reduced accordingly.
In terms of allocation, no more than 50% of Interarch’s offer will go to Qualified Institutional Buyers (QIBs), at least 15% to non-institutional bidders, and at least 35% to retail investors.
The funds raised will support various projects, including capital expenditures at their manufacturing facilities in Kichha and Pantnagar in Uttarakhand, and in Tamil Nadu. They plan to spend ₹58.53 crore on these projects and ₹10.97 crore on upgrading IT infrastructure. As of 30 September 2023, Interarch’s order book was worth ₹1,036.27 crore.
Gala Precision Engineering IPO Details
Gala Precision Engineering plans to sell a total of 31.74 lakh (3.17 million) shares, each with a face value of ₹10. This includes an OFS of 6.16 lakh shares and a fresh issue of 25.58 lakh shares. Gala filed its draft prospectus with SEBI on 14 February 2024.
Promoters Vishanji Harshi Gala, Kirit Vishanji Gala, and Nayna Gala will sell their shares, along with individual investors like Satish Kotwani and Hemlata Dhiraj Shah.
Lead Managers
Ambit Private Ltd and Axis Capital Ltd are the book-running lead managers for Interarch’s IPO. PL Capital Markets will manage Gala Precision’s public issue.
Use of Funds
Interarch plans to use the ₹58.53 crore raised for capital expenditures and upgrading its IT assets with an additional ₹10.97 crore.
Conclusion
With SEBI’s approval, both Interarch Building Products and Gala Precision Engineering are set to proceed with their IPOs, providing new investment opportunities in the market.
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