Interarch Building Products Ltd

Interarch Building Products IPO

Interarch Building Products Ltd

₹13,600 /16 sharesMinimum investment

IPO details

Minimum investment
₹13,600
Price range
₹850 - ₹900
Lot size
16
Issue size
600.29 Cr
Face value
10
IPO document

Subscription rate

Qualified Institutional Buyers157.87x
Non-Institutional Investor125.16x
Retail Individual Investor17.60x
Employees22.50x
Total79.11x
As of 21 Aug'24, 04:00 PM

Schedule

19 Aug 2024
IPO open date
21 Aug 2024
IPO close date
22 Aug 2024
Allotment date
22 Aug 2024
Funds unblock or debit
26 Aug 2024
Tentative listing date

About

Interarch Building Products is a provider of pre-engineered steel construction solutions in India. Their offerings include design and engineering, manufacturing, and on-site project management services for the installation and erection of pre-engineered steel buildings (PEBs). The company offers its solutions through two main avenues. First, through PEB contracts, Interarch delivers complete PEBs on a turnkey basis. This consists of production and on-site management for installation at customer sites. Second, under PEB sales, the company markets pre-engineered steel building materials. This includes metal ceilings and corrugated roofing, with products such as suspended ceiling systems under the ‘TRAC’ brand, metal roofing and cladding systems under ‘TRACDEK’, and permanent decking known as ‘TRACDEK Bold-Rib’. The company also offers PEB steel structures, including framing systems and non-industrial PEBs for use in farmhouses and residential buildings, branded as ‘Interarch Life’, along with light gauge framing systems intended for third-party builders or erectors.;
Founded in
1983
MD/CEO
Mr. Arvind Nanda
Parent organisation
Interarch Building Products Ltd

Interarch Building Products Financials

Revenue
Total Assets
Profit
All values are in ₹ Cr
8351,1241,293202220232024

Strengths & Risks

Strengths
Risks
Interarch Building Products has completed 677 PEB contracts during FY15 to FY24, delivering a wide range of projects. These projects include multi-level warehouses for e-commerce clients, paint production lines for the paint manufacturing industry, manufacturing units for the fast-moving consumer goods (FMCG) sector, large-span PEBs for indoor stadiums, and facilities for the cement industry.
The company's clientele spans many sectors. In the industrial and manufacturing construction sectors, clients include Grasim Industries Limited, Berger Paints India Limited, Timken India Limited, and Addverb Technologies Limited. In the infrastructure construction sector, they service warehousing and logistics service providers.
Interarch Building Products operates with the support of design and engineering centers located in Noida, Uttar Pradesh; Chennai, Tamil Nadu; and Hyderabad, Telangana. These centres help the company to provide customised PEBs tailored to specific customer requirements. Additionally, they facilitate ongoing enhancements and improvements in the company's processes and designs.
The manufacturing facilities of Interarch Building Products hold ISO 9001:2015 certification for quality management systems.
Interarch Building Products has invested in advanced computer-aided design technologies. Utilising tools such as Staad Pro, MBS, FrameCad, Tekla, AutoCAD, and ZWCAD, the team can precisely meet the design and detailing specifications required by their clients. As part of their PEB contracts, the company provides on-site project management for the installation and erection of PEBs at customer sites for efficient and accurate construction processes.
The company's revenue from operations has shown a consistent increase, rising from Rs 834.94 crore in FY22 to Rs 1,123.93 crore in FY23, and further to Rs 1,293.30 crore in FY24. Profit after tax (PAT) also increased during this period, from Rs 17.13 crore in FY22 to Rs 81.46 crore in FY23 and to Rs 86.26 crore in FY24.
Interarch Building Products relies heavily on the consistent and affordable supply of raw materials, particularly steel. Fluctuations in the availability or cost of these materials can significantly impact the company's performance.
A substantial portion of Interarch's revenue comes from repeat customers, particularly those within the same corporate group. In FY22, FY23, and FY24, repeat orders accounted for 58.62%, 80.42%, and 81.39% of revenue from operations, respectively. A loss or decline in these repeat orders could negatively affect the company's operations and financial health.
Pre-engineered building (PEB) contracts contributed 86.39% in FY22, 87.74% in FY23, and 75.67% in FY24 to Interarch Building Products’ revenue. Any loss or significant reduction in revenue from PEB contracts could adversely impact the company’s business.
Some of the orders bagged by Interarch Building Products have been cancelled in the past. Any repeat of this in the future could impact the company’s revenue from operations.
The company's manufacturing operations are primarily based in Tamil Nadu and Uttarakhand. Any disruptions in either of these locations due to social, political, or economic factors or natural events could negatively impact the company's operations and financial health.
The company, its promoters, group companies, and directors are currently involved in various legal proceedings. Any adverse judgments in these cases could harm the company's business prospects.
As of May 31, 2024, Interarch's total debt stood at Rs 298.76 crore.

Application details

For Interarch Building Products IPO, eligible investors can apply as Regular & Employee.

Apply asPrice bandApply rangeLot size
Regular₹850 - ₹900Upto ₹2 Lakhs16
Employee₹765 - ₹815Upto ₹2 Lakhs16
High Networth Individual₹850 - ₹900₹2 - ₹5 Lakhs16

Frequently Asked Questions