Interarch Building Products IPO opens for subscription. Should you bid or skip?

The initial public offering (IPO) of Interarch Building Products has opened for subscription today and will be available for public bidding until August 21. Ahead of the issue, the company raised Rs 179 crore from anchor investors.

The IPO aims to raise Rs 600.29 crore at the upper price band and includes a fresh issue of shares worth Rs 200 crore, along with an offer for sale (OFS) of up to 44.47 lakh shares.

Interarch Building Products IPO price band

The IPO is priced between Rs 850 and Rs 900 per share, with investors able to bid for 16 shares per lot.

Interarch Building Products IPO review

Analysts have advised investors to subscribe to the issue, citing the company’s integrated manufacturing operations, proven execution capabilities, and diverse customer base as key factors positioning it for continued growth.

"IBPL's financial performance has been robust, characterized by consistent topline and bottom-line expansion. The IPO valued at a P/E of 15.3x, appears attractively priced. Considering the company's market leadership, strong financial performance, and a reasonable valuation, we recommend subscribing to the IPO," said Swastika Investmart.

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Other Details

The proceeds from the fresh issue will be used to finance capital expenditures for setting up the project, upgrading various manufacturing facilities, investing in information technology assets, meeting incremental working capital requirements, and covering general corporate purposes.

Incorporated in 1983, Interarch Building Products has evolved into a turnkey provider of pre-engineered building (PEB) solutions. The company offers integrated facilities for design and engineering, manufacturing, and on-site project management for the installation and erection of its PEBs, enabling it to deliver end-to-end solutions to its customers.

The company’s revenue from operations for fiscal year 2024 increased to Rs 1,293 crore, up from Rs 1,123 crore the previous year. This growth was driven primarily by higher revenue from pre-engineered building contracts and product sales, bolstered by an expanded sales and marketing presence in West Bengal and Telangana, as well as diversification into new sectors and industries.

Profit after tax increased from Rs 81.46 crore in FY23 to Rs 86.26 crore in FY24. As of March 2024, Interarch Building Products' order book stood at Rs 1,153 crore.

Ambit and Axis Capital are the book-running lead managers for the issue, while Link Intime India is the registrar.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)