Interarch Building Products IPO | The firm seeks to mobilize Rs 600.29 crore via a maiden public issue, including a fresh issuance of Rs 200 crore worth of shares and an offer-for-sale of 44.47 lakh shares worth Rs 400.29 crore.
The initial public offering (IPO) of Interarch Building Products has garnered significant attention, with investors bidding for 5.08 crore equity shares by August 20, the second day of the offering.
This response surpasses the offer size of 46.91 lakh equity shares by 10.84 times, highlighting the strong demand for the New Delhi-based company’s shares.
IPO Details and Objectives
Interarch aims to raise Rs 600.29 crore through this maiden public issue, which includes a fresh issuance of Rs 200 crore worth of shares and an offer-for-sale (OFS) of 44.47 lakh shares valued at Rs 400.29 crore.
The price band for the IPO, which is set to close on August 21, is between Rs 850 and Rs 900 per share.
The proceeds from the fresh issuance are earmarked for several key initiatives, including the establishment of a new pre-engineered building (PEB) manufacturing unit.
Additionally, funds will be allocated for upgrading the Kichha manufacturing facility, as well as the facilities in Tamil Nadu and Pantnagar. Further investments will be made to enhance the company’s existing information technology infrastructure, meet incremental working capital needs, and for general corporate purposes.
Investor Response
Non-institutional investors, particularly high-net-worth individuals (HNIs), have been the most active, subscribing to 30.82 times their allotted portion.
Retail investors have also shown strong interest, with their subscription reaching 7.31 times the allocated shares. Qualified institutional buyers (QIBs) subscribed to 1.47 times their portion.
Meanwhile, the company’s employees demonstrated considerable support by subscribing to 11.75 times the shares reserved for them, which are available at a discount of Rs 85 per share to the final issue price.
Anchor Investment and Market Position
Prior to the public offering, Interarch successfully raised Rs 179.5 crore through the anchor book on August 16. Notable institutional investors participating in this anchor investment include SBI General Insurance Company, ICICI Prudential Mutual Fund, Pinebridge Global Funds, and several others.
Interarch is a leading turnkey pre-engineered steel construction solutions provider in India, offering integrated services that encompass design, engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings.
As of March 2024, Interarch boasted the second-largest aggregate installed capacity among integrated PEB players in India, with a market share of 6.5 percent in terms of operating income for FY24.
