The initial public offering (IPO) of Interarch Building Products opened for public subscription on 19 August in an attempt to raise Rs 600 crore from the public market. 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 is fixed at Rs 850 to 900 per equity share. Retail investors can bid for a maximum of 13 lots where one lot containing 16 shares requires a minimum capital of 14,400. The issue opened on 19 August and will be closed on 21 August. The allotment for the issue will be finalised on 22 August followed by its listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on 26 August.
Ambit and Axis Capital are the book-running lead managers and Link Intime India is the registrar to the offer.
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.
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.
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