Archit Nuwood Industries has received in-principle approval from the BSE for its draft red herring prospectus (DRHP), paving the way for the company to launch its initial public offering (IPO).
The IPO of the Haryana-based SME is expected to be launched around the end of this month with the issue size likely to be around Rs 170 crore, according to sources close to the development.
It would be the second-largest SME IPO after KP Green Engineering, which raised nearly Rs 180 crore in March.
The funds raised from the IPO will be used to enhance production capacity, expand market reach, and invest in new technologies to drive future growth.
The pre-IPO round saw the company raising Rs 19.22 crore through a fresh issue of 10.68 lakh shares at Rs 180 each. Some of the marquee investors that participated in the pre-round were Negen Capital, Vijay Khetan (Executive Director of Param Capital), Ankit Mittal, and Gunavanth Vaid.
The IPO would comprise entirely of a fresh issue of shares with the company planning to issue up to 62.40 lakh shares.
Promoters Vineet Kumar, Vinod Kumar Singla, and Prem Chand hold 25.79 lakh shares, 6486 lakh shares, and 19.46 lakh shares, respectively, representing 14.81, 37.24, and 11.17 percent of the pre-issue paid-up share capital of the company.
Promoted by the Archit Group, Archit Nuwood is a leading manufacturer of wood-based panels. According to the DRHP, the company has set the face value of equity shares at Rs 10 each.
Incorporated in 2017, Archit Nuwood specialises in manufacturing a wide range of Medium Density Fiberboard (MDF), High-Density Fiberboard (HDF) boards, and pre-laminated sheets.
The company's manufacturing facility is located in Tohana, Haryana. The plant is equipped with state-of-the-art MDF and HDF plants, along with short-cycle presses. The pre-laminated range offers a variety of textures, including solid, wood grain shades, and fabric and stone décors, featuring finely crafted textured caul plates on the pre-laminated board surface.
Notably, the wood-based panels sector is steadily growing due to rapidly developing local economies and stable demand for quality panels from local customers. Additionally, the growth of the retail, hospitality, and healthcare sectors has increased the demand for commercial real estate.
Share India Capital Services is the book-running lead manager for the issue, while Maashitla Securities is the registrar. The price band for the issue and the lot size will be decided by the company in due course, in consultation with the book-running lead manager.
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