Interarch Building Products mobilises Rs 179.5 crore via anchor book, IPO opens on August 19

Interarch Building Products IPO

Interarch Building Products, the turnkey pre-engineered steel construction solutions provider, has raised Rs 179.5 crore through its anchor book launched on August 16. The public issue opens on August 19.

Institutional investors including ICICI Prudential Mutual Fund, Whiteoak Capital, Mirae Asset, Pinebridge Global Funds, LC Pharos Multi Strategy Fund, and Eastspring Investments India Infrastructure Equity Open participated in the anchor book.

SBI General Insurance Company, Bajaj Allianz Life Insurance, Aryabhata Global Assets Fund, Carnelian Capital Compounder Fund, and Societe Generale also invested in the New Delhi-based company.

The company informed exchanges on Friday that it has finalised allocation of 19,94,288 equity shares to anchor investors at Rs 900 per equity share.

"Out of the total allocation of 19,94,288 equity shares to the anchor investors, 7,16,592 shares were allocated to three domestic mutual fund houses that have applied through a total of eight schemes," Interarch Building Products said.

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Interarch offers integrated facilities for design and engineering, manufacturing, on-site project management capabilities for the installation and erection of pre-engineered steel buildings (PEB). It intends to raise Rs 600.29 crore via maiden public issue which is a combination of fresh issuance of Rs 200 crore and an offer-for-sale (OFS) of 44.47 lakh equity shares worth Rs 400.29 crore by promoters and investor.

Investor OIH Mauritius will be exiting the company by selling its entire shareholding of 17,97,600 equity shares via OFS. Its weighted average cost of acquisition of these shares was Rs 500 per share, hence the profit per share comes to Rs 400 per share at the upper price band.

The price band for the issue, which closes on August 21, has been fixed at Rs 850-900 per share.

The company will spend Rs 58.5 crore out of the net fresh issue proceeds for setting up a new PEB manufacturing unit, and Rs 19.25 crore for upgradation of the Kichha manufacturing facility, Tamil Nadu manufacturing facility I, Tamil Nadu manufacturing facility II and Pantnagar manufacturing facility.

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Furthermore, Rs 11.4 crore will be utilised for investment in upgradation of existing information technology infrastructure, Rs 55 crore for its incremental working capital requirements; and the remainder funds for general corporate purposes.