Interarch Building Products
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 19 Aug 2024 – 21 Aug 2024
- Listing date
- 26 Aug 2024
- Face value
- ₹10 per share
- Issue price
- ₹900 per share
- Lot size
- 16 shares
- Issue type
- Book Building issue
- Total issue size
- ₹600 Cr
- Market cap at offer price
- ₹1,497 Cr
- Promoter holding
- 87.53% → 59.90% pre-issue → post-issue
- ISIN
- INE00M901018
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Ambit Pvt.Ltd.
- Registered office
- Farm No.8, Khasara No.56/23/2, Dera Mandi Road, Mandi Village, Mehrauli, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 19,94,288 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 16 shares per lot, in multiples, at ₹900
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 16 | ₹14,400 |
| Retail (max) | 13 | 208 | ₹1,87,200 |
| S-HNI (min) | 14 | 224 | ₹2,01,600 |
| S-HNI (max) | 69 | 1,104 | ₹9,93,600 |
| B-HNI (min) | 70 | 1,120 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 59.84 | 51.85 |
| P/E (×) | 15.04 | 17.36 |
| Price to book (×) | 0.00 | — |
| Market cap | — | ₹1,497 Cr |
Key performance indicators
- Return on net worth
- 22.26%
- ROCE
- 25.79%
- Debt / equity
- −0.11
- PAT margin
- 7.20%
- NAV per share
- ₹268.80
- Price to book
- 0.00
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Interarch Building Products
Interarch Building Products Limited, incorporated in 1983 and converted to a public company in December 2023, is a manufacturer of pre-engineered steel buildings and components. The company operates four manufacturing facilities in India (Tamil Nadu, Uttarakhand locations) and generates revenue through PEB contracts (turn-key basis with on-site project management) and PEB sales (metal ceilings, corrugated roofing, steel structures, light gauge framing systems). For FY2024, it generated ₹12,933.02 million in revenue from operations, with 75.67% from PEB contracts and significant portions from industrial and infrastructure construction sectors. The company serves repeat customers representing 81.39% of FY2024 revenue, demonstrating strong customer relationships.
Company Analysis
from RHPInterarch Building Products Limited designs, manufactures, and sells pre-engineered steel buildings (PEBs) and related components across India through various revenue models.
Interarch Building Products Limited, incorporated in 1983 and converted to a public company in December 2023, is a manufacturer of pre-engineered steel buildings and components. The company operates four manufacturing facilities in India (Tamil Nadu, Uttarakhand locations) and generates revenue through PEB contracts (turn-key basis with on-site project management) and PEB sales (metal ceilings, corrugated roofing, steel structures, light gauge framing systems). For FY2024, it generated ₹12,933.02 million in revenue from operations, with 75.67% from PEB contracts and significant portions from industrial and infrastructure construction sectors. The company serves repeat customers representing 81.39% of FY2024 revenue, demonstrating strong customer relationships.
Objects of the Issue
- Financing the capital expenditure towards setting up the Project (Planned Andhra Pradesh Manufacturing Facility) ₹585.33 million p.28
- Financing the capital expenditure towards upgradation of the Kichha Manufacturing Facility, Tamil Nadu Manufacturing Facility I, Tamil Nadu Manufacturing Facility II and Pantnagar Manufacturing Facility ₹192.46 million p.28
- Funding investment in information technology assets for upgradation of existing information technology infrastructure of our Company ₹113.92 million p.28
- Funding incremental working capital requirements ₹550.00 million p.28
- General corporate purposes p.28
- Financing the capital expenditure towards setting up a new pre-engineered steel building manufacturing unit at the Planned Andhra Pradesh Manufacturing Facility (classified as Phase 2 of capacity development plan) ₹585.33 million p.59
- Financing the capital expenditure towards upgradation of the Kichha Manufacturing Facility, Pantnagar Manufacturing Facility and Tamil Nadu Manufacturing Facilities ₹192.46 million p.59
- Funding investment in information technology assets for upgradation of existing information technology infrastructure p.59
- Funding incremental working capital requirements p.59
- General corporate purposes p.59
- Financing the capital expenditure towards setting up a new PEB manufacturing unit (classified as Phase 2 of our capacity development plan at the Planned Andhra Pradesh Manufacturing Facility) ₹585.33 million p.121
- Financing the capital expenditure towards upgradation of the Kichha Manufacturing Facility, Tamil Nadu Manufacturing Facility I, Tamil Nadu Manufacturing Facility II and Pantnagar Manufacturing Facility ₹192.46 million p.121
- Funding investment in information technology assets for upgradation of existing information technology infrastructure of our Company ₹113.92 million p.121
- Funding incremental working capital requirements ₹550.00 million p.121
- General corporate purposes [●] p.121
- Financing the capital expenditure towards setting up a new pre-engineered steel building manufacturing unit at the Planned Andhra Pradesh Manufacturing Facility (classified as Phase 2 of our capacity development plan) - 'Project' p.118
- Funding investment in information technology assets for upgradation of existing information technology infrastructure of our Company p.150
- Fresh Issue of equity shares ₹ 2,000.00 million p.477
Issue Structure
- Total Issue
- [●] equity shares of face value of ₹10 each, aggregating to ₹ [●] million
- Fresh Issue
- [●] equity shares of face value of ₹10 each aggregating up to ₹2,000.00 million
- Offer for Sale
- Up to 4,447,630 equity shares of face value of ₹10 each aggregating to ₹ [●] million
- Price Band
- [●] per Equity Share (Floor Price: [●]; Cap Price: [●])
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through two primary channels: (1) PEB Contracts – providing complete pre-engineered steel buildings on a turn-key basis including on-site project management for installation and erection at customer sites, and (2) PEB Sales – selling building materials including metal ceilings and corrugated roofing, metal roofing and cladding systems, and permanent/metal decking over steel framing. Revenue is generated from industrial sector customers (68.57% in FY2024), infrastructure construction (30.53%), and building construction (0.36%).
Business Segments
SWOT Analysis
- • Established manufacturing operations with multiple facilities across India(p.45)
- • Significant in-house design, engineering, and project management capabilities(p.239)
- • Strong revenue growth trajectory and demonstrated financial performance(p.243)
- • Substantial repeat order base from established customers(p.42)
- • Diverse customer base spanning industrial and non-industrial sectors(p.242)
- • Established track record in PEB industry(p.63)
- • Long operating history with brand recognition(p.75)
- • Strong revenue growth momentum(p.64)
- • Diversified manufacturing footprint(p.49)
- • Advanced design and engineering capabilities(p.52)
- • Established brand presence and market position in growing PEB industry(p.165)
- • Ranked third in operating revenue among integrated PEB players in India(p.165)
- • Second largest aggregate installed capacity with significant market share(p.165)
- • Vertically integrated manufacturing operations with in-house design and engineering(p.165)
- • Extensive track record of project execution(p.165)
- • Diverse customer base with long-standing relationships(p.165)
- • Demonstrated revenue growth over three years(p.165)
- • Experienced Promoters with 30 years industry experience(p.165)
- • Strong revenue and profitability growth trajectory(p.171)
- • Installed capacity and manufacturing scale(p.168)
- • High return on capital employed and equity(p.171)
- • Strong cash generation from operations(p.171)
- • Net cash position with low leverage(p.171)
- • Leading market position with third-highest PEB operating revenue and second-largest installed capacity among integrated players(p.238)
- • Established brand presence with 30+ years in PEB industry under TRAC® and TRACDEK® brands(p.243)
- • Vertically integrated manufacturing with design, engineering, and on-site project management capabilities(p.244)
- • Strong track record with 677 completed PEB contracts from FY2015 to FY2024(p.238)
- • High repeat customer base with 81.39% of FY2024 revenue from repeat orders(p.241)
- • Strong financial performance with growing profitability and positive cash conversion(p.248)
- • Four geographically distributed manufacturing facilities with 141,000 MTPA capacity providing strategic manufacturing presence(p.244)
- • Diversified customer base across industrial/manufacturing, infrastructure and building end-use sectors(p.241)
- • Established market presence with long operational history(p.325)
- • Strong financial performance with growing revenue(p.320)
- • Consistent profitability with improving margins(p.320)
- • Promoter commitment with significant shareholding stake(p.308)
- • Experienced senior management team with long tenure(p.304)
- • Robust cash generation and healthy balance sheet(p.321)
- • Established manufacturing and service operations across multiple geographies(p.379)
- • Diversified revenue base with strong pre-engineered building contracts focus(p.362)
- • Strong profitability with consistent growth in net profit(p.366)
- • Healthy balance sheet with net cash position(p.387)
- • Growing contract assets and unbilled revenue indicating strong order pipeline(p.352)
- • Established credit facilities and banking relationships(p.385)
- • Established manufacturing presence with multiple facilities(p.462)
- • Comprehensive regulatory approvals across multiple jurisdictions(p.451)
- • Diversified geographic presence with GST registrations across 23 states(p.451)
- • Registered trademark portfolio of 14 trademarks(p.453)
- • High dependence on limited supplier base with no exclusive arrangements(p.41)
- • Significant capacity underutilization across manufacturing facilities(p.35)
- • Heavy reliance on repeat orders with concentration risk in customer base(p.43)
- • No long-term contracts with customers; orders subject to cancellation(p.42)
- • High proportion of fixed-price contracts vulnerable to cost pressures(p.42)
- • Past instances of order cancellations impacting revenue(p.44)
- • Dependence on contract labour with potential supply disruption risks(p.50)
- • Dependence on third-party building erectors(p.51)
- • No insurance for third-party logistics(p.51)
- • Significant working capital requirements(p.53)
- • High bank guarantee obligations(p.53)
- • Labor disputes at manufacturing facilities(p.56)
- • Outstanding litigation involving Promoters(p.57)
- • Untraceable historical corporate records(p.72)
- • Significant indebtedness(p.62)
- • Unable to trace historical records and past statutory non-compliances(p.67)
- • Working capital intensive business model with historical working capital requirements(p.157)
- • Dependence on limited sources for working capital financing(p.157)
- • High dependence on limited steel suppliers(p.222)
- • Exposure to raw material price volatility(p.222)
- • Smaller scale relative to key competitors(p.229)
- • Reliance on transportation and logistics(p.223)
- • Declining EBITDA margin from 9.47% in FY2023 to 8.74% in FY2024(p.248)
- • Moderate capacity utilization at 60.64% as of March 31, 2024 indicates underutilized manufacturing capacity(p.263)
- • Significant dependence on limited number of suppliers with top 10 suppliers accounting for 81.92% of raw material costs(p.271)
- • Declining PAT margin from 7.25% in FY2023 to 6.67% in FY2024(p.248)
- • Heavy dependence on industrial/manufacturing sector which contributed 68.57% of revenue in FY2024(p.241)
- • Job work production indicates limited in-house capacity with 6.27% of FY2024 production outsourced(p.260)
- • Concentration of promoter shareholding reduces institutional representation(p.308)
- • Dependence on related-party agreements for critical facilities(p.309)
- • Recent acquisition from promoter group entity creates governance concerns(p.310)
- • Significant contingent liabilities from various tax and regulatory disputes(p.373)
- • High concentration of trade receivables extending beyond normal credit terms(p.351)
- • Significant provisions for credit losses on trade receivables(p.351)
- • Reliance on guarantee from related parties for bank borrowings(p.378)
- • History of labour disputes affecting operations(p.365)
- • Concentration of real estate assets requiring ongoing fair value assessments(p.345)
- • Significant outstanding tax proceedings with ₹270.50 million at stake(p.447)
- • Labour disputes and wage payment obligations(p.446)
- • Provident fund compliance issues with ₹3.41 million outstanding(p.445)
- • Criminal proceedings involving promoters and directors(p.442)
- • Outstanding dues to material creditors totalling ₹448.17 million(p.449)
- • Infrastructure charges dispute with Tamil Nadu authorities for ₹1.71 million(p.446)
- • Geographic expansion into South-Eastern and Western India(p.35)
- • Expanding global pre-engineered steel buildings market(p.26)
- • Growing adoption of pre-engineered steel construction methodology(p.26)
- • Capacity expansion planned at new Andhra Pradesh manufacturing facility(p.28)
- • Modernization of existing manufacturing facilities(p.28)
- • Government support for steel industry growth(p.56)
- • Growing PEB industry with projected CAGR(p.63)
- • Planned expansion to new geographies(p.74)
- • Emerging demand for pre-engineered construction(p.74)
- • Shift towards organized sector in PEB market(p.74)
- • Capacity expansion and capital deployment from IPO proceeds(p.61)
- • Expansion through new PEB manufacturing facility with phased approach(p.121)
- • Capacity expansion across four existing manufacturing facilities(p.135)
- • Enhanced IT infrastructure to improve operational efficiency(p.155)
- • Strategic funding for incremental working capital requirements(p.157)
- • Consolidation and listing on stock exchanges to enhance market visibility(p.121)
- • Rapid growth in pre-engineered buildings market(p.211)
- • Infrastructure development and government investment focus(p.218)
- • Shift from unorganised to organised sector(p.212)
- • Warehousing and e-commerce driven demand(p.199)
- • Growing penetration of pre-engineered construction(p.216)
- • Industry expansion with PEB market projected to grow at CAGR of 11-12% from FY2024 to FY2029(p.238)
- • Infrastructure investment surge with ₹74-76 trillion projected investment in infrastructure FY2025-2029 versus ₹46-48 trillion in FY2020-2024(p.250)
- • Government support through National Steel Policy aiming to increase per capita steel consumption to 160 kgs by 2030(p.250)
- • Planned capacity expansion with new manufacturing facilities in Andhra Pradesh and Gujarat(p.260)
- • Infrastructure sector growth opportunity with PEB market share expected to increase from 36-38% in FY2024 to 38-40% by FY2029(p.243)
- • Expansion of geographical footprint to underserved markets with lower construction and manufacturing GVA than national average(p.250)
- • Organized sector consolidation creating competitive advantage with top six players growing faster than rest of industry(p.243)
- • Customer relationship expansion opportunity with top five customer groups contributing only 25.18% of FY2024 revenue(p.248)
- • Leveraging IPO to strengthen market position and brand(p.325)
- • Expansion through capital deployment from fresh issue(p.325)
- • Growth in construction and infrastructure sector providing market tailwind(p.325)
- • Significant cash generation capability for reinvestment(p.321)
- • Growing building materials sales segment showing strong growth trajectory(p.362)
- • Expansion of pre-engineered building contracts market(p.362)
- • Increased contract values and unbilled revenue pipeline(p.372)
- • International market expansion potential(p.362)
- • Operational efficiency gains from improved inventory management(p.392)
- • Expansion into Andhra Pradesh with new manufacturing facility(p.452)
- • Listing on BSE and NSE providing capital market access(p.456)
- • Fresh capital issuance of ₹2,000 million for growth(p.477)
- • Capacity expansion plans for existing manufacturing facilities(p.462)
- • Volatility in steel prices and raw material costs(p.36)
- • Risk of supply chain disruption from single suppliers(p.41)
- • Cyclical and seasonal nature of the PEB industry(p.45)
- • Monsoon and adverse weather conditions impacting operations(p.45)
- • Potential for manufacturing disruptions from natural disasters and labour unrest(p.45)
- • Industry downturn risk linked to capital expenditure cycles(p.45)
- • Fragmented market with unorganized competition(p.74)
- • Vulnerability to raw material price fluctuations(p.63)
- • Transportation and logistics challenges(p.52)
- • Dependency on National Steel Policy(p.56)
- • Industry-specific design and technical challenges(p.63)
- • Product-specific technical limitations(p.64)
- • Inflation and rising input costs(p.80)
- • Regulatory compliance and land use restrictions(p.49)
- • Potential technological disruption in PEB industry(p.58)
- • Funding requirements and deployment not independently appraised(p.54)
- • Risk of delays and cost overruns in equipment procurement(p.56)
- • Vendor quotation validity and potential price increases(p.57)
- • Potential variation in utilization of Net Proceeds subject to shareholder approval(p.55)
- • Commodity price volatility and geopolitical risks(p.223)
- • High fragmentation and intense competition(p.223)
- • Design and manufacturing limitations(p.224)
- • Structural durability challenges for long-term infrastructure(p.225)
- • Skilled labour shortage in PEB sector(p.224)
- • Raw material price volatility with heavy dependence on steel inputs subject to market fluctuations(p.269)
- • Intense competition from fragmented industry with low barriers to entry impacting margins(p.273)
- • Competition from organized competitors including Pennar Industries, Everest Industries, and Kirby Building Systems(p.273)
- • Risk from unorganized sector compromising on quality and weakening structural security potentially damaging industry reputation(p.273)
- • Dependence on limited customer base with top three customers contributing significant revenue portion(p.248)
- • Currency and input price fluctuations affecting cost structure and profitability(p.269)
- • Regulatory compliance requirements across multiple jurisdictions increasing operational complexity(p.277)
- • Volatility in steel and raw material prices impacts margins(p.328)
- • Cyclicality of construction and infrastructure industry(p.313)
- • Regulatory changes in building materials and construction standards(p.313)
- • Foreign exchange fluctuations affecting imported inputs(p.326)
- • Significant pending tax and regulatory disputes across multiple jurisdictions(p.373)
- • Extended service tax demand resolution creating uncertainty(p.375)
- • Vulnerability to steel price fluctuations affecting profitability(p.383)
- • Exposure to foreign currency fluctuations in international contracts(p.382)
- • Dependence on customer advance payments for working capital management(p.361)
- • Subject to potential challenges from ongoing labour matters(p.373)
- • Stringent environmental and health/safety regulatory requirements(p.450)
- • Multiple statutory and regulatory authority proceedings pending across jurisdictions(p.446)
- • Potential changes in securities laws and regulatory framework(p.470)
- • Litigation risk from customers regarding contract disputes(p.446)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Arvind Nanda | Promoter Selling Shareholder | 39.74% | — |
| Gautam Suri | Promoter Selling Shareholder | 32.22% | — |
| Ishaan Suri | Promoter Selling Shareholder | 3.75% | — |
| Viraj Nanda | Promoter | 0% | — |
| Shobhna Suri | Promoter Group Selling Shareholder | 4.16% | — |
| OIH Mauritius Limited | Investor Selling Shareholder | 12.47% | — |
| Arvind Nanda | Promoter | — | — |
| Gautam Suri | Promoter | — | — |
| Arvind Nanda | Promoter | 39.74% | [●] |
| Gautam Suri | Promoter | 32.22% | [●] |
| Ishaan Suri | Promoter | 3.75% | [●] |
| Viraj Nanda | Promoter | Nil | Nil |
| IGS Holdings Private Limited | Promoter Group | 3.64% | [●] |
| Shobhna Suri | Promoter Group | 4.16% | [●] |
| Taipan Associates Private Limited | Promoter Group | 4.02% | [●] |
| Arvind Nanda | Promoter/Managing Director | — | — |
| Gautam Suri | Promoter/Whole-time Director | — | — |
| Viraj Nanda | Promoter/Non-Executive Director | — | — |
| Ishaan Suri | Promoter/Non-Executive Director | — | — |
| OIH Mauritius Limited | Promoter Group | 13.33% | — |
| Arvind Nanda | Promoter | 75.71% | — |
| Gautam Suri | Promoter | 75.71% | — |
| Ishaan Suri | Promoter | 75.71% | — |
| Viraj Nanda | Promoter | 75.71% | — |
| Arvind Nanda | Promoter | 39.47% | — |
| Gautam Suri | Promoter | 31.83% | — |
| Shobhna Suri | Promoter | 4.00% | — |
| Ishaan Suri | Promoter | 4.00% | — |
| Taipan Associates Private Limited | Promoter Group | 3.87% | — |
| IGS Holdings Private Limited | Promoter Group | 3.50% | — |
| OIH Mauritius Limited (formerly known as Indivision India Partners) | Promoter Group | 13.33% | — |
| Arvind Nanda | Promoter/Managing Director | — | — |
| Gautam Suri | Promoter/Whole Time Director | — | — |
| Viraj Nanda | Promoter/Non-Executive Director | — | — |
| Ishaan Suri | Promoter/Non-Executive Director | — | — |
| Arvind Nanda | Promoter | — | — |
| Gautam Suri | Promoter | — | — |
| Ishaan Suri | Promoter | — | — |
| Viraj Nanda | Promoter | — | — |
| OIH Mauritius Limited | Promoter Group | — | — |
| Arvind Nanda | Promoter Selling Shareholder | — | — |
| Gautam Suri | Promoter Selling Shareholder | — | — |
| Ishaan Suri | Promoter Selling Shareholder | — | — |
| Shobhna Suri | Promoter Group Selling Shareholder | — | — |
| OIH Mauritius Limited | Investor Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.