Interarch Building Solutions In Focus: Interarch Building Solutions plans to deploy Rs 200 crore out of its Rs 250 crore QIP towards its Andhra Pradesh plant, while the remaining proceeds will be used to open a new unit in Gujarat, according to Manish Garg, Executive Director & CEO, Interarch Building Solutions Limited.
Speaking to NDTV Profit, Garg said the company is currently in the midst of raising Rs 250 crore through a qualified institutional placement (QIP), with the Andhra Pradesh plant being the primary focus of the capital deployment.
Interarch To Invest Rs 200 Crore Of QIP In Andhra Plant
Garg said Rs 200 crore out of the Rs 250 crore QIP will be invested in the Andhra Pradesh plant, while the balance will be used to open a new unit in Gujarat.
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The Andhra Pradesh facility is currently operating at peak utilisation, with the company seeing significant revenue potential from the plant.
“Rs 200 Cr out of Rs 250 Cr QIP is for Andhra plant,” Garg told NDTV Profit.
He added that the Andhra plant has a revenue potential of Rs 1,000 crore.
Interarch Andhra Plant Expansion
Interarch is expanding the Andhra Pradesh facility in phases, with Garg outlining the timeline for the next stages of commercialisation.
The company’s Phase 2 commercialisation is expected to start in March, while Phase 3 commercialisation will start in January 2028.
Garg said the company will begin commercial operations fully in the next fiscal, while civil works for the new line are already at an advanced stage.
“Civil Works At New Line Are At Advanced Stages,” Garg said.
He added that the Phase 2 expansion of the line can create Rs 100 crore in revenue.
Interarch Building Plans New Gujarat Unit
The remaining proceeds from the Rs 250 crore QIP will be used to establish a new unit in Gujarat, according to Garg.
The capital allocation comes as Interarch looks to expand its manufacturing capacity and meet future demand across its operations.
Garg said the company can realistically double its capacity over the next five years.
“Can Realistically Double Capacity In Next 5 Years,” he said.
Interarch Building To Invest More In Talent And Technology
Apart from manufacturing capacity, Garg said the company aims to increase investments in talent and technology.
“Aim To Invest More In Talent And Tech,” he said.
However, Garg indicated that margins are unlikely to see an immediate improvement as the company continues to invest in new plants and capacity.
“Margins To Not See Uptick Due To Capex For Plants,” he said.
He also expects steel usage to increase going forward.
“Steel Usage Will Increase Going Forward,” Garg said.
Interarch Building Share Price History
Interarch Building Solutions shares have remained under pressure across most tracked time periods, BSE data showed. Over the past one week, the stock has declined Rs 11.75, or 0.70%. Over two weeks, it has fallen Rs 22.75, or 1.35%.
Over the past one month, Interarch shares have declined Rs 57.50, or 3.34%, while the stock is down Rs 259.50, or 13.48% over three months.
Over six months, the stock has fallen Rs 110.70, or 6.23%. On a YTD basis, Interarch shares are down Rs 636.70, or 27.65%.
Over the past one year, the stock has declined Rs 273.15, or 14.08%. However, over a two-year period, the stock has gained Rs 216.05, or 14.90%.
What Does Interarch Building Solutions Do?
Interarch Building Solutions is a provider of pre-engineered steel building solutions, with capabilities spanning design and engineering, manufacturing, project management, installation and erection of pre-engineered buildings. The company also provides metal roofing, cladding and related building solutions.
The company has manufacturing facilities and provides end-to-end solutions for industrial, commercial and infrastructure projects.
Interarch’s Capacity Expansion Plan
Garg’s comments highlight a multi-year capacity expansion plan, with Rs 200 crore of the Rs 250 crore QIP earmarked for the Andhra Pradesh plant, the remaining funds intended for a new Gujarat unit, and the company targeting the potential to double capacity over the next five years.
The Andhra facility is already at peak utilisation, while Phase 2 and Phase 3 commercialisation are scheduled for March and January 2028, respectively.
The company is also advancing civil works on the new line and expects the Phase 2 expansion to create Rs 100 crore in revenue potential.
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