Interarch Building Products Limited IPO

Apply 0
Avoid 0

They are a leading provider of turnkey pre-engineered steel construction solutions in India, offering integrated services that include design, engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings (PEBs). According to CRISIL, they ranked third in operating revenue from the PEB business in FY 2023 and held the second-largest installed capacity of 141,000 metric tonnes per annum as of March 31, 2024, with a 6.5% market share among integrated PEB players in India.

Their PEB solutions are tailored to meet customer requirements and are utilized across various sectors, including industrial, infrastructure, and residential applications. They have successfully delivered PEBs for a diverse range of projects, from multi-level warehouses for e-commerce to large-span structures for indoor stadiums and facilities for the cement industry. Between FY 2015 and FY 2024, they completed 677 PEB contracts, showcasing their extensive industry experience.

The Indian PEB industry is projected to grow at a CAGR of 11-12% from FY 2024 to FY 2029, and their strong track record, established brand, and comprehensive in-house capabilities position them well to capitalize on this growth.

They offer PEBs through two primary avenues:
i. PEB Contracts: Turnkey solutions where they provide complete PEBs along with on-site project management for installation and erection.
ii. PEB Sales: Sale of pre-engineered steel building materials, including metal ceilings, roofing systems, PEB steel structures, and light gauge framing systems, for use by third-party builders and erectors.

Their products are branded under names like “TRAC®,” “TRACDEK®,” and “Interarch Life,” catering to various industrial and non-industrial applications.

Objects of the Interarch Building Products Limited IPO:

The company proposes to utilize the Net Proceeds towards funding the following objects (collectively, the “Objects”): i. 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) (“Project”) ii. 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; iii. Funding investment in information technology (“IT”) assets for upgrading the company's existing information technology infrastructure; iv. Funding incremental working capital requirements; and v. General Corporate Purposes Total number of shares issue :- i. Fresh issue is 2,222,222 shares, ii. Offer for sale is 4,447,630 shares.
DRHP of Interarch Building Products Limited IPO
RHP of Interarch Building Products Limited IPO

Interarch Building Products Limited IPO Details:

Open Date: Aug 19 2024
Close Date: Aug 21 2024
Total Shares: 6,669,852
Face Value: ₹ 10 Per Equity Share
Issue Size: 600.29 Cr.
Lot Size: 16 Shares
Issue Price: ₹ 850 - 900 Per Equity Share
Listing At: NSE,BSE
Listing Date: Aug 26 2024

Promoters And Management:

Sonali Bhagwati Dalal is the Chairperson and an Independent Director of the Company. She has been associated with the Company since January 15, 2024. She holds a diploma in architecture from The Centre for Environmental Planning and Technology, Ahmedabad, Gujarat, India. She is registered with the Council of Architecture, India. She is currently associated with Designplus Architecture, Shared Workspace Solutions Private Limited, Fade to Black Design and Media Private Limited, Spazzio Projects & Interiors Private Limited and Designplus Associates Services Private Limited. She has experience in the architecture and design sector. Arvind Nanda is the Managing Director of the Company. He has been associated with the Company since its incorporation. He is responsible for overall business decision-making and financial oversight of operational management in the Company. He holds a bachelor’s degree in commerce (honours) from the University of Delhi, New Delhi, India. He has been admitted as an associate of the Institute of Chartered Accountants in England and Wales and is entitled to practise as a Chartered Accountant by the ICAI. He has nearly 30 years of experience in the pre-engineered steel buildings industry with the Company. Gautam Suri is the Whole-time Director of the Company. He has been associated with the Company since its incorporation. He is responsible for critical technical business decisions in the Company. He holds a bachelor’s degree in technology in mechanical engineering from the Indian Institute of Technology Delhi, New Delhi, India. He has nearly 30 years of experience in the pre-engineered steel buildings industry with the Company.

Financials of Interarch Building Products Limited IPO:

Particulars ( In Crores )
2022
2023
2024
Revenue from Operations 835 1,124 1,293
Other Income 6 12 13
Total Revenue 841 1,136 1,306
Cost of Material Consumed 569 743 829
Changes in inventories -5 -10 -5
Employees Benefit Expenses 89 93 119
Other Expenses 148 192 238
EBITDA 39 119 126
OPM (%) 4.61% 10.46% 9.65%
Depreciation & Amortisation 12 7 8
EBIT 27 112 118
Finance Cost 4 3 2
PBT 23 109 116
Tax 5 27 30
PAT 17 81 86
NPM (%) 2.04% 7.17% 6.60%
No.of Shares 1.66 1.66 1.66
EPS 10.29 48.96 51.84

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Interarch Building Products Limited 1,293 86 51.84 17.4 900 1,497
Everest Industries Limited 1,575 18 11.40 123.0 1,067 1,686
Pennar Industries Limited 3,131 98 7.29 22.2 169 2,277
* All the data is as per FY24.

Recommendation on Interarch Building Products Limited IPO:

1. Interarch Building Products Limited is a prominent player in the Indian market, specializing in turnkey pre-engineered steel construction solutions. Their company is uniquely equipped with integrated facilities for design and engineering, manufacturing, and on-site project management, allowing them to offer comprehensive services for the installation and erection of pre-engineered steel buildings (PEBs). 2. Product and Service Offerings Their PEB solutions are meticulously designed, engineered, and fabricated in-house to meet specific customer requirements. These offerings cater to a diverse range of applications, including industrial, infrastructure, residential, commercial, and non-commercial construction projects. Over the years, they have successfully delivered PEBs for a wide array of projects, from multi-level warehouses for e-commerce giants to paint production lines and manufacturing units for FMCG companies. Additionally, they have supplied large-span PEBs for indoor stadiums and cement industry clients, showcasing our versatility and expertise. 3. Their comprehensive offerings are available in two main categories: i. PEB Contracts ii. PEB Sales:-   a. Metal Ceilings and Corrugated Roofing                         b. PEB Steel Structures                              c. Light Gauge Framing Systems (LGFS) 4. Competitive Landscape The industry is marked by intense competition, primarily due to the low capital investment required for manufacturing facilities and technology. The competitive landscape impacts margins and can lead to quality compromises, particularly in the unorganized sector. Our key competitors in the Indian market include companies such as Epack Polymers Private Limited, Everest Industries Limited, Kirby Building Systems and Structures India Private Limited, and others. 5. The Revenue has Increased from Rs.835 Crores in FY22 to Rs.1293 Crores in FY24. 6. The EBITDA has Increased from 39 Crores in FY22 to 126 Crores in FY24. 7. The PAT has Increased from 17 Crores in FY22 to 86 Crores in FY24. 8. As per FY24, CFO/EBITDA is 0.92, and EPS is 51.84, 9. Market Capitalization is 1497 Crores and P/E is 17.4x based on FY24.

Lead Manager of Interarch Building Products Limited IPO:

  1. Ambit Capital Private Limited
  2. Axis Capital Limited

Registrar of Interarch Building Products Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Interarch Building Products Limited Farm No. 8, Khasara No. 56/23/2, Dera Mandi Road Mandi Village, Mehrauli, New Delhi -110047, Phone: +91-12041 70200 Email: compliance@interarchbuildings.com Website: https://www.interarchbuildings.com/

Discussion on Interarch Building Products Limited IPO:

1 Comment

    Looking good to buy for long term capital gains. Will buy on listing on 26th as a non allottee of IPO.

    Reply

Leave a Reply