Pranav Birje | Senior Correspondent
- Price Band of ₹850/- – ₹900/- per equity share bearing face value of ₹10/- each (“Equity Shares”)
- Bid/Offer Opening Date – Monday, August 19, 2024 and Bid/Offer Closing Date – Wednesday, August 21, 2024.
- Minimum Bid Lot is 16 Equity Shares and in multiples of 16 Equity Shares thereafter.
- The Floor Price is 85.00 times the face value of the Equity Share and the Cap Price is 90.00 times the face value of the Equity Share
- The offer includes a reservation of Rs 2 crore for eligible employees and employee discount of Rs 85 per share.
Mumbai, August 13, 2024: Interarch Building Products Limited, one of the leading turnkey pre-engineered steel construction solution providers in India with integrated facilities for design and engineering, manufacturing, and on-site project management capabilities for installation and erection of pre-engineered steel buildings (“PEB”), has fixed the price band of ₹850/- to ₹900/- per Equity Share of face value ₹10/- each for its maiden initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Monday, August 19, 2024, for subscription and close on Wednesday, August 21, 2024. Investors can bid for a minimum of 16 Equity Shares and in multiples of 16 Equity Shares thereafter.
The IPO consists of fresh issue of up to Rs 2,000 million and an offer for sale (OFS) of up to 44,47,630 equity shares by Promoter Selling Shareholders and Investor Selling Shareholder. The offer includes a reservation of Rs 2 crore for eligible employees and employee discount of Rs 85 per share.
The proceeds from the fresh issue, to the extent of Rs 585.26 million for financing the capital expenditure towards setting up the Project, Rs 192.46 million for financing the capital expenditure towards upgradation of the Kichha Manufacturing Facility, Tamil Nadu, Manufacturing Facility I, Tamil Nadu Manufacturing Facility II and Pantnagar Manufacturing Facility, Rs 109.71 million for funding investment in information technology assets for upgradation of existing information technology infrastructure of the Company, Rs 550 million for funding incremental working capital requirements and General corporate purposes.
Interarch Building Products was incorporated in 1983 and has more than three decades of experience in the pre-engineered steel buildings (PEB) industry. Over the years, the company has evolved into a turn-key PEB solutions provider, with integrated facilities for design and engineering, manufacture, and on-site project management capabilities for the installation and erection of PEBs supplied by the company which enable it to deliver end-to-end solutions to its customers.
The company’s PEB offerings are categorized into pre-engineered steel building contracts (“PEB Contracts”) and the sale of pre-engineered steel building materials (“PEB Sales”). PEB Sales includes sale of metal ceilings under the brand, “TRAC®”, metal roofing and cladding systems under the brand, “TRACDEK®” and permanent/metal decking (lost shuttering) over steel framing under the brand, “TRACDEK® Bold-Rib”; supply of PEB steel structures under the brand, “Interarch Life” and light gauge framing systems (“LGFS”).
Interarch’s customers under the industrial/manufacturing construction category include Grasim Industries Limited, Berger Paints India Limited, Blue Star Climatech Limited, Timken India Limited and Addverb Technologies Limited and infrastructure construction category includes InstaKart Services Private Limited.
As of March 31, 2024, Interarch Building Products’ Order Book stood at ₹ 11,532.90 million.
Interarch Building Products Limited’s revenue from operations during the fiscal year 2024 increased to Rs 12,933.02 million from Rs 11,239.26 million 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 grew from Rs 814.63 million for the Financial Year 2023 to Rs 862.62 million for the Financial Year 2024.
Ambit Private Limited, and Axis Capital Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the net offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.
DISCLAIMERS: INTERARCH BUILDING PRODUCTS LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to undertake an initial public offer of its Equity Shares and has filed the RHP with the RoC. The RHP is made available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the BRLMs i.e., Ambit Private Limited at www.ambit.co and Axis Capital Limited at www.axiscapital.co.in, the website of the NSE at www.nseindia.com and the website of the BSE at www.bseindia.com and the website of the Company at www.interarchbuildings.com. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks,please see the section titled “Risk Factors” on page 30 of the RHP. Potential investors should not rely on the DRHP filed with SEBI for making any investment decision and instead should place reliance on the RHP.The Equity Shares offered in the Offer have not been and will not be registered under the U.S. Securities Act or any state securities laws in the United States, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securitieslaws in the United States. Accordingly, the Equity Shares are being offered and sold only outside the United States in “offshore transactions”, as defined in, and in compliance with, Regulation S and the applicable laws of the jurisdiction where those offers and sales are made
DISCLAIMER CLAUSE OF SEBI: SEBI only gives its observations on the offer documents and this does not constitute approval of either the Offer or the specified securities stated in the Offer Document. The investors are advised to refer to page 453 of the RHP for the full text of the disclaimer clause of SEBI.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHP has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to the page 455 of the RHP for the full text of the disclaimer clause of BSE.
DISCLAIMER CLAUSE OF NSE (The Designated Stock Exchange): It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 456 of the RHP for the full text of the disclaimer clause of NSE.