Interarch Building Products Ltd IPO

Established brand presence and market position in the growing pre-engineered building industry in India.

Significantly integrated manufacturing operations, backed by in-house design and engineering, on-site project management, and sales and marketing capabilities.

Demonstrated track record of execution of pre-engineered steel building projects.

Diverse customer base and long-standing relationships with significant customers.

Demonstrated financial performance and status of order book.

Experienced and qualified Promoters and management team.

The companys business and profitability are substantially dependent on the availability and the cost of its raw materials and components consumed, including steel, and any disruption to the timely and adequate supply of raw materials, or volatility in the prices of raw materials may adversely impact its business, results of operations, financial condition and cash flows.

Under-utilization of its manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on its business, future prospects, future financial performance and cash flows.

The company depends on a limited number of third party suppliers for the uninterrupted supply of its raw materials and does not have continuing or exclusive arrangements with any of its suppliers. Loss of suppliers or any failures by the company suppliers to make timely delivery of raw materials may have an adverse effect on its business, results of operations, financial condition and cash flows.

The company derives a significant portion of its revenues from Repeat Orders which the company identify as orders placed by customers or customer groups (identified as customers forming part of the same corporate group) that have placed orders with the Company previously. Any loss of, or a significant reduction in the repeat orders received by it could adversely affect its business, results of operations, financial condition and cash flows.

The companys customers or customer groups does not commit to long-term or continuing contracts and may cancel or modify their orders or postpone or default in their payments. Any cancellation, modification, payment postponement or payment default in regard to its order book could materially harm the company cash flow position, revenues and earnings. Further, the company is dependent on Customer Groups and its revenue from such customer groups as repeat orders accounted for 58.62 %, 80.42 % and 81.39 % of its revenue from operations for Financial Years ended March 31, 2022, March 31, 2023 and March 31, 2024.

Some of the orders placed with it by the company customers, have been cancelled in the past and any future cancellations may impact its revenue from operations, cash flows, financial conditions and cash flows.

Its business is dependent and will continue to depends on the company Manufacturing Facilities and the company subject to certain risks in its manufacturing process. Any disruption, slowdown, or shutdown in its manufacturing operations could adversely affect the companys business, results of operations, financial condition and cash flows.

The company outsource certain operations of its business such as security guard services and other manufacturing processes to third parties. Any failures by such third parties to deliver their services could have an adverse impact on its business, results of operations, financial condition and cash flows.

The companys financial results may be subject to seasonal variations and cyclical nature of the industry.

The company depends on its PEB Contracts for a significant portion of the company revenues, in connection with which the company also provide onsite project management for installation and erection of pre-engineered steel buildings. Its inability to effectively supervise projects may lead to accidents or interruptions which may lead to project delays which may adversely affect its business, results of operations, financial condition and cash flows.