Interarch Building Products Shares Close At 33% Premium Over Issue Price

Shares of Interarch Building Products Ltd. closed on the National Stock Exchange on Monday at Rs 1,203.10, a premium of 33% over the issue price of Rs 900 apiece. The stock closed at Rs 1,203 per share on the BSE, marking a premium of 33.6%.

The counter debuted at a 44% premium on the NSE and a premium of 43% on the BSE.

The Rs 600.3-crore initial public offering was subscribed 93.53 times on its third and final day, led by demand from institutional investors and non-institutional investors. The public issue consisted of a fresh issue of shares worth Rs 200 crore and an offer-for-sale component of Rs 400.3 crore.

Interarch is a provider of turnkey pre-engineered steel construction solutions in India. It offers integrated facilities for design, engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings.

"Our current order book is nearly Rs 1,300 crore and growing fast. We are holding back on new orders as pre-engineered steel construction business requires delivery within 10 months," Managing Director Arvind Nanda told NDTV Profit.

The customers include semiconductor, data centres, FMCG, renewables and warehousing sectors. The company's capacity addition is on track, with expansion of Gujarat operations and building of a new plant in Andhra Pradesh.

"Phase 1 of a production facility in Andhra Pradesh will complete in a week, while the second phase will finish by March next year. Land acquisition has been done for its Gujarat project and based on demand, production capacity will be added starting August next year," Nanda said.

The company is ranked third in terms of operating revenue from popular pre-engineered businesses in the financial year 2023 in India, according to the company's prospectus. It also has the second-largest aggregate installed capacity of 1.41 lakh tonnes per annum as of March 31, 2023.

The company has four manufacturing facilities, of which two are situated in Sriperumbudur, one in Pantnagar and one in Kichha.

Of the net proceeds from the fresh issue, Rs 58.5 crore will be used to fund a manufacturing facility in Andhra Pradesh. Approximately Rs 19.3 crore will be invested in upgrading facilities in Kichha and Pantnagar in Uttarakhand and two units in Tamil Nadu.

The company will invest Rs 10.97 crore to upgrade its information technology infrastructure and another Rs 55 crore to fund incremental working capital requirements.