Interarch Building Products IPO will open by Next Week

Interarch Building Products IPO: Interarch Building Products is all set to launch its IPO by next week. The company will issue an offer for sale (OFS) of up to 44.5 lakh shares which will be worth around Rs 200 crore.

Interarch Building Products is a turnkey pre-engineered steel construction provider which is based in Noida.

These OFS shares are issued by lead investors and shareholders including 18 lakh shares by OIH Mauritius, 5.4 lakh shares owned by Ishaan Suri, 6 lakh shares by Shobhna Suri, and 7.2 lakh shares by Arvind Nanda.

Also Read: What is US Social Security Card? How to apply, documents, age, eligibility criteria to get SSN card | CHECK HERE

The income generated from the public offering will be used for capital expenditures, expenses for upgradation and day-to-day expenses.

According to the Interarch Building Products IPO document, around Rs 58.53 crore funds raised from the offerings will be used for the capital costs of building a new PEB manufacturing unit, while the Rs 19.25 crore funds earned will be utilized to pay for the upgrades to the Kichha Manufacturing Facility, the Pantnagar Manufacturing Facility, and the Tamil Nadu Manufacturing Facilities.

Meanwhile, Rs 10.97 crore funds raised will be utilized for purchasing new IT equipment to improve the company’s current IT infrastructure and Rs 55 crore funds will be used for the company’s working capital needs.

Also Read: Facing Budget crunches, Chinese Tax Collectors Descend on Companies

The DRHP reports that the rest of the funds will be used for general business reasons.

The company reported that its income from operations rose by  34.6 percent to Rs 1,123.93 crore in FY23, which is an increase from Rs 834.94 crore last year because of the funds raised from pre-engineered building contracts and product sales.

Another reason behind the rise in the company’s income from operations was because of the increase in its sales and marketing efforts in West Bengal and Telangana as well as expanding into new industries and sectors.

The company also reported that its profit after tax went up by 375.54 % to Rs 81.46 crore against Rs 17.13 crore in the same period last year.

Also Read: Saraswati Saree IPO Open For Public Suscription on Aug 12: Check Price Brand, Lot Size, GMP

During the six months ending September 30, 2023, the company made income from operations of Rs 591.53 crore, and the net profit after tax stood at Rs 34.57 crore. Furthermore, the firm’s order book was worth Rs 1,036.27 crore in September 30, 2023.

At least 15% of the net offer will be set aside for non-institutional bidders and 35% will be set aside for retail individual bidders.