Interarch Building Products, a steel infrastructure company based in Noida, has officially launched its initial public offering (IPO). This IPO marks a significant milestone for the company, as it aims to raise funds for business upgrades, general corporate purposes, and capital expenses. The IPO opens today (19 August) and will close on Wednesday, 21 August.
IPO Details and Pricing
The Interarch IPO consists of two parts: a fresh issue of shares worth ₹ 200 crore and an offer for sale (OFS) of up to 44.48 lakh shares. The company has set a price band of ₹ 850-900 per share for this offering. If fully subscribed at the upper end of the price range, Interarch expects to raise around ₹ 400 crore. The overall issue size is projected to reach ₹ 600 crore, making it a substantial fundraising event for the company.
Anchor Investment Round Success
Ahead of the IPO, Interarch successfully raised ₹ 179.49 crore from anchor investors during its pre-IPO anchor round. Anchor investors include both domestic and international institutions, showing strong market interest in the company’s shares. Notable investors in this round include Bajaj Allianz Insurance Company, SBI General Insurance, ICICI Prudential Mutual Fund, and Eastspring Investment India.
On Friday, 16 August, the company announced that it had allocated 19.94 lakh equity shares to these anchor investors at ₹ 900 per share. According to the report by Upstox, 35.93% of the total shares were allotted to eight domestic mutual funds, with a total value of ₹ 64.49 crore.
Company Financial Performance
Company financial records show a strong performance in the first half of FY24. The company reported a net profit of ₹ 34.57 crore and operational revenue of ₹ 591.53 crore. With a solid order book worth ₹ 1,036.27 crore, the company is well-positioned for future growth.
The proceeds from the IPO are expected to be used for a variety of purposes. According to Interarch, the funds will help with general corporate needs, business upgrades, and capital expenses, allowing the company to strengthen its operations and expand its reach in the steel infrastructure sector.
Book-Running Lead Managers
This IPO is being managed by two leading financial institutions: Ambit Private Limited and Axis Capital Limited. Their involvement ensures that the offering is well-organized and attracts a wide range of investors from the domestic and international markets.
Interarch Building Products’ ₹ 600 crore IPO is a significant step forward for the company as it seeks to expand its business and capitalize on growth opportunities. With strong anchor investor support and a solid financial performance in FY24, the company’s future looks promising as it goes public and enters a new phase of its corporate journey.
