Interarch Building IPO Commands Strong Debut; Lists With 44% Premium

The initial public offering (IPO) of Interarch Building Products debuted with a strong premium of 44.3 per cent at Rs 1,299 on the National Stock Exchange (NSE) against its issue price of Rs 900 per share. 
 

The Rs 600.29 crore IPO consisted of fresh issues of up to Rs 200 crore and an offer-for-sale (OFS) worth Rs 400.29 crore by promoter and investor-selling shareholders. 

The price band for the issue was fixed at Rs 850 to 900 per equity share. 

During its subscription phase, the overall subscription stood at 93.79 times. The retail category contributed with nearly 20 times subscription, whereas qualified institutions bidding reached nearly 200 times. 

Ambit and Axis Capital were the book-running lead managers and Link Intime India was the registrar to the offer.
 

Expert View

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IPO Objectives
The net proceeds of Rs 200 crore from the fresh issue will be utilised towards setting up a new PEB manufacturing unit, upgradation of manufacturing facilities and upgradation of IT infrastructure.

Additionally, the funds will also be used for prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company and general corporate purposes. 

Moreover, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders. 

Firm’s Financials

The firm registered revenue of Rs 1,306 crore in FY24, compared to Rs 1,136 crore in FY23.  

However, the firm’s profit after tax (PAT) decreased to Rs 86.26 crore in FY24 compared to Rs 81.46 crore in FY23. 

Overall, revenue increased by 15 per cent, whereas PAT fell 6 per cent.