Interarch Building Products Limited, a Noida-based steel construction solution provider, and metal component manufacturer Gala Precision Engineering Limited on Monday received the Securities and Exchange Board of India’s (SEBI) approval to raise funds through initial public offerings (IPOs).
Interarch plans to offload 44,47,630 or 44 lakh equity shares through an offer for sale (OFS). The IPO is a mix of fresh issue of shares up to ₹200 crore with a face value of ₹10 per share and the OFS, according to an exchange filing. The company filed its draft prospectus with SEBI on March 18, 2024.
Gala Precision Engineering plans to offload a total of 31,74,416 or 31 lakh equity shares with a face value of ₹10 per share. The company plans an OFS of up to 616,000 or 6.16 lakh equity shares and a fresh issue of up to 25,58,416 or 25 lakh equity shares, according to the exchange filing. The company filed its draft prospectus with SEBI on February 14, 2024.
Arvind Nanda, Gautam Suri, Ishaan Suri, and Shobhna Suri are the promoters offloading their stake in Interarch Building Products. In addition to them, OIH Mauritius Limited is selling a stake as an investor to raise new funds from public markets.
Vishanji Harshi Gala, Kirit Vishanji Gala, and Nayna Gala are the promoters selling stakes in Gala Precision Engineering. In addition to the promoters, individual investors who are offloading their stake include Satish Kotwani, Hemlata Dhiraj Shah, Dhiraj Nanchand Shah, Urmil Dhiraj Shah, and Rupa Sunil Mehta.
The book runners for Interarch Building Products IPO are Ambit Private Limited and Axis Capital Limited. PL Capital Markets is the book-running lead manager for the Gala Precision Engineering public issue.
Interarch said it might consider a private placement of equity shares aggregating ₹40 crore as a ‘pre-IPO placement’. If such a placement is completed, the fresh issue size will be reduced.
Interarch’s offer will have not more than 50 per cent offering for qualified institutional buyers (QIBs), not less than 15 per cent for non-institutional bidders, and not less than 35 per cent for retail investors.
The ₹58.53 crore raised from the public issue will be used for capital expenditures on projects like the company’s manufacturing facilities in Uttarakhand’s Kichha and Pantnagar and Tamil Nadu.
Interarch will use ₹10.97 crore to upgrade and invest in information technology assets. As of September 30, 2023, Interarch Building Products’ Order Book stood at ₹1,036.27 crore.