6 Reasons to Invest in the Upcoming Interarch Building Products Limited IPO

Interarch Building Products Limited is an upcoming IPO that is set to hit the market soon. The company is a leading provider of pre-engineered steel building solutions in India. With a strong track record and a bright future ahead, Interarch Building Products Limited is an attractive investment opportunity for investors.

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Here are 6 reasons why you should consider investing in the upcoming Interarch Building Products Limited IPO:

• Pioneer in Pre-Engineered Steel Buildings: Interarch Building Products Limited is a pioneer in the Indian pre-engineered steel building industry, with a proven track record of delivering innovative and cost-effective solutions.
• Diverse Product Range: The company offers integrated facilities for design, engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings (PEB).
• Strategic Expansion Plans: The IPO proceeds will fuel the company's strategic expansion plans, including upgrading manufacturing facilities and investing in IT.
• Leveraging Growing Infrastructure Demand: Riding on the wave of India's burgeoning infrastructure sector, the company is well-positioned to capitalize on the increasing demand for pre-engineered steel buildings.
• Cost-Effective and Sustainable Solutions: Interarch Building Products Limited's pre-engineered steel buildings offer a cost-effective and sustainable alternative to traditional construction methods, aligning with the growing environmental consciousness.
• Potential for High Returns: Given the company's strong fundamentals, market potential, and expansion plans, investors can anticipate substantial returns on their investment.

About Interarch Building Products Limited

Interarch Building Products Limited is a leading provider of pre-engineered steel building solutions in India. The company was incorporated in 1983 and has a strong track record of over 50 years. Interarch Building Products Limited has a wide range of products and services to offer its customers. The company's products are used in a variety of applications, including residential, commercial, industrial, and agricultural.

As of March 31, 2023, the company had the second-highest installed capacity of 141,000 metric tons per year. In the financial year 2023, it also held a 6.1% market share in operating income among integrated PEB players in India.

Key Details of the IPO

• IPO Date: August 19, 2024 to August 21, 2024
• Price Band: ?850 to ?900 per share
• Lot Size: 16 Shares
• Total Issue Size: 6,669,852 shares (aggregating up to ?600.29 Cr)
• Fresh issue: 2,222,222 shares (aggregating up to ?200.00 Cr)
• Offer for Sale: 4,447,630 shares of ?10 (aggregating up to ?400.29 Cr)

Financials of Interarch Building Products Limited

Interarch Building Products Limited has a strong track record of financial performance. These are the company's financials as of 31 March 2024 (in Crore).

• Assets: ?755.01
• Revenue: ?1,306.32
• Profit After Tax: ?86.26
• Net Worth: ?262.65

Objectives of the IPO

The company proposes to utilize the Net Proceeds towards funding the following objectives:

• Financing the capital expenditure towards setting up a new PEB manufacturing unit (classified as Phase 2 of the capacity development plan at the Planned Andhra Pradesh Manufacturing Facility)
• Financing the capital expenditure towards the upgradation of the Kichha Manufacturing Facility, Tamil Nadu Manufacturing Facility I, Tamil Nadu Manufacturing Facility II and Pantnagar Manufacturing Facility;
• Funding investment in information technology (“IT”) assets for upgrading the company's existing information technology infrastructure;
• Funding incremental working capital requirements; and
• General Corporate Purposes

Conclusion

Interarch Building Products Limited is an attractive investment opportunity for investors. The company has a strong track record, a growing market, and a strong management team. The IPO is expected to be priced at an attractive valuation. Investors who are looking for a growth opportunity should consider investing in the Interarch Building Products Limited IPO.

Investing in IPOs is now made simple through HDFC Sky's One-Click IPO. By using UPI for instant payments, this tool makes it easy for you to get involved in offerings like the upcoming Interarch Building Products Limited IPO with a few quick steps.