Interarch Building Products, a company specializing in pre-engineered steel buildings (PEBs), has taken a significant step towards going public. The company filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Tuesday, marking the beginning of its Initial Public Offering (IPO) process.
IPO Details
The proposed IPO will be a combination of fresh issue of shares and an offer for sale (OFS) by existing shareholders. Interarch aims to raise Rs 200 crore through the fresh issue of new shares. This fresh capital will be used for various purposes, including funding expansion projects, upgrading manufacturing facilities, and improving information technology infrastructure.
Offer for Sale
In addition to the fresh issue, existing shareholders will also be offering some of their shares for sale to the public. This includes promoters like Arvind Nanda, Gautam Suri, Ishaan Suri, and Shobhna Suri, along with an investor group called OIH Mauritius Limited. The total number of shares offered for sale through the OFS is expected to be around 4.45 million.
Pre-IPO Placement Possible
The company is also considering a pre-IPO placement of shares worth Rs 40 crore. This means they might sell some shares to institutional investors before the public offering. If this pre-IPO placement happens, the size of the fresh issue will be reduced accordingly.
About Interarch Building Products
Interarch Building Products is a leading player in the PEB industry. PEBs are a type of steel structure that is pre-engineered and fabricated in a factory before being shipped to the construction site for assembly. These buildings offer several advantages, including faster construction times, lower costs compared to traditional buildings, and better design flexibility.
What This Means for Investors
The filing of the DRHP indicates Interarch’s intention to raise funds from the public market. This could be an interesting opportunity for investors looking to invest in the construction sector, particularly the growing PEB market. However, as with any IPO, it’s crucial for potential investors to carefully analyze the company’s financials, business plans, and future prospects before making any investment decisions.
IPO Approval Process
SEBI will now review Interarch’s DRHP and provide its approval before the company can launch its IPO. The approval process typically takes a few months. Once approved, Interarch will announce the IPO dates, price range, and other details for public subscription.
Overall, Interarch Building Products’ move to go public reflects the growing interest in the PEB market and the company’s confidence in its future prospects. Investors should stay tuned for further developments as the IPO process unfolds.
