Interarch Building Products Files DRHP with SEBI to Raise Funds via IPO

20 Mar 2024 , 10:52 AM

Interarch Building Products has taken a significant step towards capital expansion by submitting a draft red herring prospectus to the Securities and Exchange Board of India (SEBI) for its forthcoming initial public offering (IPO). This IPO entails a blend of fresh shares issuance worth up to ₹200 Crore and an offer for sale of up to 44.5 lakh shares by the promoter group and investor-selling shareholders.

The offer for sale encompasses the sale of shares by key individuals including Arvind Nanda, Gautam Suri, Ishaan Suri, Shobhna Suri, and OIH Mauritius. Additionally, the company may contemplate a private placement of equity shares amounting to ₹40 Crore as a pre-IPO placement, which would consequently reduce the size of the fresh issue.

The IPO, featuring equity shares with a face value of ₹10 each, extends opportunities for both fresh shares issuance and sale of existing shares by promoters and investors. The offer also includes a provision for eligible employees to subscribe.

Ambit Private and Axis Capital have been appointed as the book-running lead managers, while Link Intime India will serve as the registrar of the issue.

Proceeds from the fresh issue, estimated at ₹58.53 Crore, are earmarked for financing various capital expenditures. These include setting up a new Pre-Engineered Building (PEB) manufacturing unit, upgrading existing manufacturing facilities, investing in information technology assets, and fulfilling incremental working capital requirements. The remaining funds will be allocated towards general corporate purposes.

Interarch Building Products stands as a comprehensive provider of turnkey pre-engineered steel construction solutions, boasting integrated capabilities in design, engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings (PEB).