, Interarch Building Limited provides turnkey pre-engineered steel construction solutions. Interarch Building Products IPO intends to raise Rs 600.29 crores. The issue is a combination of fresh issue of Rs 200.00 crores and offer for sale of Rs 400.29 crores.
IPO opens
August 19, 2024
IPO Closes
August 21, 2024
IPO Size (Rs.)
₹600.29 Cr
Breakup
New Issue ₹200.00 Cr+ OFS ₹400.29 Cr
Face Value:
₹ 10
IPO Price in Rs :
₹850 to ₹900 per share
Minimum Lot
16 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50%
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Ambit Private Limited , Axis Capital Limited
Registrar
Link Intime India
Interarch Building Products IPO: About The Company
They design, manufacture and sell pre-engineered steel buildings (“PEBs”) and offer them by way of: (a) PEB Contracts, wherein they provide complete PEBs on a turn-key basis to customers, and also provide on-site project management for installation and erection at customers’ sites; and (b) PEB Sales, including metal ceilings and corrugated roofing; PEB steel structures and light gauge framing systems. In a PEB construction, various primary and secondary building components are manufactured at a plant and are transported in a completely knocked down form for installation and erection of the building at a customer’s site.
They manufacture their products in-house at their four Manufacturing Facilities, comprising two Manufacturing Facilities in Sriperumbudur, Tamil Nadu, India (“Tamil Nadu Manufacturing Facility I” and “Tamil Nadu Manufacturing Facility II”) and one each in Pantnagar, Uttarakhand, India (“Pantnagar Manufacturing Facility”), and Kichha, Uttarakhand, India (“Kichha Manufacturing Facility”).
Arvind Nanda, Gautam Suri, Ishaan Suri and Viraj Nanda are the Promoters of Company.
Interarch Building Products IPO: Financials
Particulars / Rs. Cr
2024(12)
2023(12)
2022(12)
Revenue from Operations
1,293.30
1,123.93
834.94
Revenue Growth (%)
15.07
34.61
–
EBITDA
113.02
106.38
32.89
EBITDA Margin (%)
8.74
9.47
3.94
Net Profit
86.26
81.46
17.13
Net Profit (%) as stated
6.67
7.25
2.05
Share Capital
14.42
15
15
Net Worth
387.5
343.8
262.6
Total Borrowings
10.2
11.38
3.36
Post issue Share Capital
16.64
FV
10.0
IPO price
900.0
EPS Fy23
49.0
PE Fy23
18.4
EPS Fy24 (annualized)
51.8
PE Fy24 (annualized)
17.4
Market cap in Lacs
1,498
Market cap / Sales
1.16
Anchors
Salient Points: Interarch Building Products IPO
Pre-engineered steel construction has emerged as an innovative building method due to rapid growth of
automation in the construction industry. The global pre-engineered steel buildings market is estimated at $16-17 billion as of calendar year 2022 and is expected to clock at 11-12% of CAGR over the medium term.
40% of OFS is by PE investor who is making full exit of 12% stake after 17 years . Remaining 60% of OFS by two promoters with their 88% stake to reduce to 60% post IPO.
Use of Net proceeds:
Financing the capital expenditure towards setting up the Project
58.53
Financing the capex towards upgradation of the Kichha, Tamil Nadu (I & II) & Pantnagar Mfg. Facilities
19.25
Funding investment in IT assets for upgradation of existing IT infrastructure of the Company
11.39
Funding incremental working capital requirements
55.00
. From FY2015 to FY 2024 the company has completed execution of 677 PEB Contracts.
Peers
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RoNW (%)
Interarch Building Products
900.0
1,293.30
86.26
6.7%
17.4
1.16
22.26%
Everest Industries
1,125
1,575.45
18.00
1.1%
129
1.1
3.01%
Pennar Industries
180
3,130.57
98
3.1%
23.7
0.78
11.21%
Integrated manufacturing operations, backed by in-house design and engineering, on-site project management, and sales and marketing capabilities.
More than 40% Capacity Addition planned in one year
The company proposes to enhance its manufacturing presence in South-Eastern India and Western India with its planned manufacturing facilities at Attivaram, Andhra Pradesh, India and Kheda, Gujarat, India.
Company’s order book has increased to ₹ 1,153.29 Cr in FY2024.These are to executed in next 10 months time.
India’s 2nd Largest Pre-engineered Steel Buildings (PEB) Manufacturer.
The revenue from repeat orders is as high as 81% of revenue from operations.
PE FY24 : 17.6x
I intend to to apply in Interarch Building Products IPO. Demonstrated good financial performance and has a good order book. It has Market position and established brand presence in the growing pre-engineered steel building industry in India. Valuations look reasonable.
GMP as reported on social media has been Rs. 325(36%)
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
