Interarch Building Products files IPO papers with SEBI; fresh issue size Rs 200 crore

Interarch Building Products IPO: Ambit Private and Axis Capital are the book-running lead managers and Link Intime India is the registrar of the issue

Interarch Building Products has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering. The IPO is a mix of a fresh issue of shares of up to Rs 200 crore and an offer of sale of up to 44.5 lakh shares by the promoter group and investor-selling shareholders.

The offer for sale comprises a sale of 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.

Also Read: Popular Vehicles makes a weak debut: Should you buy, sell or hold?

Further, the company may consider a private placement of equity shares aggregating to Rs 40 crore as a pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.

The IPO, with a face value of Rs 10 per equity share, is a mix of fresh issue of shares of up to Rs 200 crore and an offer of sale of up to 4.45 million by the promoter group and investor-selling shareholders.

The offer for sale consists of the sale of equity shares of up to 7.20 lakh by Arvind Nanda, up to 7.90 lakh shares by Gautam Suri, up to 5.40 lakh shares by Ishaan Suri, up to 6 lakh shares by Shobhna Suri, up to 1.80 million by OIH Mauritius Limited. The offer includes a reservation for subscription by eligible employees.

The company, in consultation with the book-running lead managers, may consider a private placement of equity shares aggregating to Rs 40 crore as a "pre-IPO placement.". If such placement is completed, the fresh issue size will be reduced.

Ambit Private and Axis Capital are the book-running lead managers and Link Intime India is the registrar of the issue.

Also Read: Rekha Rakesh Jhunjhunwala-backed Baazar Style Retail files draft IPO papers

Net proceeds from the fresh issue worth Rs 58.53 crore will be used for financing the capital expenditure towards setting up a new PEB manufacturing unit (classified as Phase 2 of capacity development plan at the planned Andhra Pradesh manufacturing facility); Rs 19.25 crore for financing the capital expenditure towards the upgradation of the Kichha Manufacturing Facility, Pantnagar Manufacturing Facility and Tamil Nadu Manufacturing Facilities; Rs 10.97 crore for funding investment in information technology assets for upgradation of existing information technology infrastructure of the company; Rs 55 crore for funding incremental working capital requirements. The remaining amount will be used for general corporate purposes.

Revenue from operations during the fiscal year 2023 rose 34.6 percent to Rs 1,123.93 crore from Rs 834.94 crore in the previous year, primarily due to an increase in revenue generated from pre-engineered building contracts and sale of products by expanding its sales and marketing presence in West Bengal and Telangana and diversification into new sectors/industries. Profit after tax jumped 375.54 percent to Rs 81.46 from Rs 17.13 crore in the same period.

For the six months ended September 30, 2023, revenue from operations stood at Rs 591.53 crore, and profit after tax stood at Rs 34.57 crore.  As of September 30, 2023, the order book stood at Rs 1,036.27 crore.

Interarch Building Products is a turnkey pre-engineered steel construction solution provider with integrated facilities for design and engineering, manufacturing and on-site project management capabilities for the installation and erection of pre-engineered steel buildings (PEB).