Interarch Building Products, a Noida-based turnkey pre-engineered steel construction solution provider, is expected to launch its initial public offering (IPO) next week, sources close to the development told Moneycontrol.
According to the draft red herring prospectus of the issue, the IPO will consist of a fresh issue of shares worth up to Rs 200 crore and an offer for sale (OFS) of up to 44.5 lakh shares by the promoter group and investor-selling shareholders.
The OFS includes 7.2 lakh shares by Arvind Nanda, 7.9 lakh shares by Gautam Suri, 5.4 lakh shares by Ishaan Suri, 6 lakh shares by Shobhna Suri, and 18 lakh shares by OIH Mauritius.
The net proceeds from the fresh issue will be used for capital expenditure, investments for systems upgrade and general corporate purposes.
As per the IPO document, Rs 58.53 crore will be used for financing capital expenditure for setting up a new PEB manufacturing unit (classified as Phase 2 of the capacity development plan at the planned Andhra Pradesh manufacturing facility) while Rs 19.25 crore will be used for capital expenditure to upgrade the Kichha Manufacturing Facility, Pantnagar Manufacturing Facility, and Tamil Nadu Manufacturing Facilities.
Further, Rs 10.97 crore will be used for funding investments in information technology assets to upgrade the company’s existing IT infrastructure and another Rs 55 crore will be used for funding incremental working capital requirements.
The balance will be used for general corporate purposes, as per the DRHP.
Meanwhile, Interarch's revenue from operations during the fiscal year 2023 increased by 34.6 percent to Rs 1,123.93 crore, up from Rs 834.94 crore in the previous year. This growth was primarily driven by increased revenue from pre-engineered building contracts and product sales, which was achieved by expanding the company’s sales and marketing presence in West Bengal and Telangana and diversifying into new sectors and industries.
Profit after tax surged 375.54 percent to Rs 81.46 crore, up from Rs 17.13 crore in the same period.
For the six months ending September 30, 2023, revenue from operations stood at Rs 591.53 crore, and profit after tax was Rs 34.57 crore. As of September 30, 2023, the company’s order book stood at Rs 1,036.27 crore.
The IPO's book-building structure has up to 50 percent of the net offer allocated on a proportional basis to qualified institutional buyers. At least 15 percent of the net offer will be reserved for non-institutional bidders, while a minimum of 35 percent will be allocated to retail individual bidders.
Ambit Private Limited and Axis Capital Limited are the book-running lead managers for the issue, and Link Intime India Private Limited will serve as the registrar.
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