IPO screener: Interarch Building issue subscribed 3.20 times on Day 1

The ₹600-crore Interarch Building Products saw a robust response from high-net-worth individuals and retail investors on Monday, the first day of the issue opening. At the end of Day 1, the IPO was subscribed 3.20 times overall.

The IPO, which has a price band of ₹850–900, will close on August 21.

The IPO consists of a fresh issue of up to ₹200 crore and an offer for sale (OFS) of up to 44,47,630 shares by Promoter Selling Shareholders and Investor Selling Shareholders. The offer includes a reservation of ₹2 crore for eligible employees and an employee discount of ₹85 per share.

Investors can bid for a minimum of 16 equity shares and in multiples of 16 equity shares thereafter. Up to 50 per cent of the offer has been reserved for Qualified Institutional Buyers, 15 per cent for Non-Institutional Bidders (HNIs), and 35 per cent for allocation to Retail Individual Bidders.

The portion reserved for HNIs was subscribed 7.85 times and retail investors by 2.76 times. The employee quota received bids 4.97 times, while the QIB portion saw 0.27 times. As against 46.91 lakh shares on offer, the IPO received bids for nearly 1.5 crore shares.

Interarch Building Products, one of the leading turnkey pre-engineered steel construction solution providers with integrated facilities for design and engineering, manufacturing, and on-site project management capabilities for the installation and erection of pre-engineered steel buildings, has garnered Rs 179.49 crore from anchor investors as part IPO process The company informed the bourses that it had allocated 19,94,288 equity shares at Rs 900 a share on Friday to anchor investors.

Foreign and Domestic Institutions who participated in the anchor were ICICI Prudential MF, Whiteoak Capital MF, Mirae Asset MF, 3P India MF, Pinebridge Global Funds, LC Pharos MF, SBI General Insurance, Eastspring Investment India, Bajaj Allianz Insurance Company, Chartered Finance & Leasing Ltd, Bengal Finance and Investment, Aryabhata MF, Carnelian Capital Compounder Fund, Societe Generale, and Subhkam Ventures (I) Pvt. Ltd.

The proceeds from the fresh issue, to the extent of Rs 58.526 crore for financing the capital expenditure towards setting up the Project, Rs 19.246 crore for 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, Rs 10.971 crore for funding investment in information technology assets for upgradation of existing information technology infrastructure of the Company, Rs 55 crore for funding incremental working capital requirements and General corporate purposes.

Interarch Building Products was incorporated in 1983 and has more than three decades of experience in the pre-engineered steel buildings (PEB) industry. Over the years, the company has evolved into a turnkey PEB solutions provider, with integrated facilities for design and engineering, manufacture, and on-site project management capabilities for the installation and erection of PEBs supplied by the company , which enable it to deliver end-to-end solutions to its customers. Interarch’s customers under the industrial/manufacturing construction category include Grasim Industries, Berger Paints India, Blue Star Climatech, Timken India and Addverb Technologies and infrastructure construction category includes InstaKart Services Private Limited.

Ambit Private Limited and Axis Capital Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.