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Noida-based pre-engineered steel construction solution provider, Interarch Building Products, is primed to launch its initial public offering (IPO) next week, according to sources. The proceeds from the IPO will be used for capital expenditure, IT infrastructure upgrades, and general corporate purposes.
According to the draft red herring prospectus (DRHP) for the issue, the IPO will feature a fresh issuance of shares totalling Rs 200 crore, alongside an offer for sale (OFS) of up to 44.5 lakh shares by the promoter group and selling shareholders. The OFS will include shares from several promoters, such as Arvind Nanda, Gautam Suri, Ishaan Suri, Shobhna Suri, and OIH Mauritius.
The company plans to allocate the net proceeds from the fresh issue towards capital expenditure, upgrading systems, and general corporate purposes. Specifically, Rs 58.53 crore will be earmarked for setting up a new PEB manufacturing unit, Rs 19.25 crore for upgrading the existing manufacturing facilities, Rs 10.97 crore for IT infrastructure upgrades, and Rs 55 crore for working capital requirements.
Interarch’s revenue from operations during the fiscal year 2023 increased by 34.6% to Rs 1,123.93 crore, primarily driven by growth in pre-engineered building contracts and product sales. Profit after tax surged 375.54% to Rs 81.46 crore. For the six months ending on September 30, 2023, the company reported a revenue of Rs 591.53 crore, along with a profit after tax amounting to Rs 34.57 crore. The company’s order book was Rs 1,036.27 crore as of September 30, 2023.
The IPO structure allocates up to 50% of the net offer to qualified institutional buyers, 15% to non-institutional bidders, and 35% to retail individual investors. Axis Capital Limited will serve as the book-running lead managers for the IPO, with Link Intime India Private Limited appointed as the registrar.