Interarch Building Products Ltd has launched its IPO with a price range of INR 850-900 per share, seeking to raise INR 600 crore. The subscription period runs from August 19 to August 21, 2024. Funds will be allocated for capital expenditures, system upgrades, and general corporate purposes. The IPO allocates 50% to institutional investors, 35% to retail, and 15% to non-institutional investors. With a strong order book of INR 1,153 crore and revenue growth to INR 1,293.30 crore in FY24, Interarch is well-positioned to capitalise on India's infrastructure boom.
Interarch Building Products Ltd has announced its initial public offering (IPO) with a price range set between INR 850 and INR 900 per share. The IPO is part of a larger plan to raise INR 600 crore and will be open for public subscription starting August 19 and closing on August 21, 2024. This move not only marks a significant step for the company but also highlights the growing interest in the construction solutions sector amid India's expanding infrastructure needs.
The funds raised from this IPO will primarily be directed towards capital expenditures, system upgrades, and general corporate purposes, which is critical for positions the company for future growth. Interarch, known for its expertise in turnkey pre-engineered steel structures, holds a strong position in the Indian market with integrated facilities that encompass design, manufacturing, and project management. As of March 31, 2024, the company reported an impressive order book valued at over INR 1,153 crore, indicating robust demand for its services.
In a strategic allocation of shares in the IPO, half of the issue size has been reserved for qualified institutional investors, 35% for retail investors, and 15% for non-institutional investors. Investors must bid for a minimum of 16 shares and can do so in multiples of 16 thereafter, making it accessible for a wide range of participants. This diverse approach aims to encourage both institutional and retail investment, reflecting the company's commitment to inclusivity in its growth strategy.
Interarch's performance in recent fiscal years underscores its potential for growth. The company reported revenues from operations of INR 1,293.30 crore in fiscal year 2024, compared to INR 1,123.93 crore the year before. This increase suggests a healthy upward trend, driven by a surge in construction activities across various sectors, including commercial, industrial, and residential projects. The Indian government's focus on infrastructure development and housing initiatives has further propelled the demand for prefabricated structures, which are cost-effective and time-efficient.
With Ambit Pvt Ltd and Axis Capital Ltd acting as the book-running lead managers for the IPO, the company is expected to attract significant investor interest. The equity shares are scheduled to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), allowing a wider audience of potential investors to participate in what could be a lucrative opportunity.
As India continues to urbanise and invest in new infrastructure, companies like Interarch Building Products are well-positioned to benefit from this trend. The success of their IPO could serve as a bellwether for the construction sector, potentially encouraging other firms in the industry to explore public offerings as a means to fuel growth and innovation.
In conclusion, Interarch Building Products Ltd's upcoming IPO is a pivotal moment for the company and reflects the broader trends in the construction industry. With the increasing demand for modern building solutions, the IPO may not only enhance Interarch's financial standing but also contribute to the evolving landscape of India's infrastructure development.
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