Interarch Building Products IPO Review

Interarch Building Products is one of the leading turnkey pre-engineered steel construction solution providers in India with integrated facilities for design and engineering, manufacturing, on-site project management capabilities for the installation and erection of pre-engineered steel buildings ("PEB").
 
The Company is led by the Promoters, Arvind Nanda who is also the Managing Director and he has nearly 30 years of experience in the pre-engineered steel buildings industry; and Gautam Suri who is a Whole-time Director of the Company and has nearly 30 years of experience in the pre-engineered steel buildings industry.

Financially, Interarch revenue increased from ₹8,408.57 Millions in FY22 to ₹11,363.92 Millions in FY23 and currently at ₹13,063.15 Millions in FY24. EBITDA also increased from ₹328.89 Millions in FY22 to ₹1,063.80 Millions in FY23 and currently stable at ₹1,130.15 Millions in FY24. The PAT increased from ₹171.33 Millions in FY22 to ₹814.63 Millions in FY23 and currently at ₹862.62 Millions in FY24. This indicates a steady financial performance.

For the Interarch Building Products IPO, the company is issuing shares at a pre-issue EPS of ₹58.68 and a post-issue EPS of ₹51.84. The pre-issue P/E ratio is 15.33x, while the post-issue P/E ratio is 17.36x against the industry P/E ratio of 65.56x. The company's ROCE for FY24 is 25.79% and ROE for FY24 is 19.40%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Interarch indicates potential listing gains of 45% - 50%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply the Interarch Building Products Limited IPO for Listing gain or long term investment purposes.