Interarch Building Products IPO: The good and the bad

Published: 16th Aug 2024

By: Value Research

About the company

Interarch Building Products, incorporated in 1983, specialises in pre-engineered construction. It offers services in the design, engineering, and manufacturing of steel structures, with four factories across India.

Total IPO size (Rs cr) 600 Offer for sale (Rs cr) 400 Fresh issue (Rs cr) 200 Price band (Rs) 850-900 Subscription dates August 19-21, 2024 Purpose of issue For capex, IT upgradation and working capital requirements

IPO details

M-cap (Rs cr) 1,497 Net worth (Rs cr) 588 Promoter holding (%) 59.9 Price/earnings ratio (P/E) 17.4 Price/book ratio (P/B) 2.5

Post-IPO

Key financials (Rs cr) 2Y growth p.a. (%) FY24 FY23 FY22   Revenue 24.5 1293 1124 835   EBIT 122.9 105 99 21   PAT 124.4 86 81 17   Net worth 21.5 388 344 263   Total debt 30.6 13 18 8

Financial history

3Y average FY24 FY23 FY22   ROE (%) 15.1 19.4 20.4 5.4   ROCE (%) 22.2 27.6 31.4 7.8   EBIT margin (%) 6.5 8.1 8.8 2.5   Debt-to-equity 0 0 0.1 0Ratios

Key ratios

The Good

Interarch has over 30 years of track record. It operates the second-largest manufacturing facility among the integrated pre-engineering building (PEB) players.

The bad

The company is highly reliant on repeat orders and has limiting bargaining power with suppliers. Get a detailed analysis of the IPO by clicking the link below:

Other Webstories

Watch Next WebStory