NewsCRISIL Ratings Submits Q4FY26 Monitoring Agency Report for Interarch Building Solutions' IPO ProceedsCRISIL Ratings Submits Q4FY26 Monitoring Agency Report for Interarch Building Solutions' IPO Proceeds
Crisil Ratings Limited submitted the Monitoring Agency Report for Interarch Building Solutions for the quarter ended March 31, 2026, covering utilisation of IPO proceeds from the fresh issue of Rs 2,000.00 million. Cumulative utilisation stood at Rs 1,707.32 million as at the end of the quarter, with Rs 292.68 million remaining unutilised and deployed in fixed deposits and bank accounts with a market value of Rs 306.19 million. No deviation from the objects of the issue was reported; however, implementation delays were noted for three objects — capital expenditure for setting up the project, upgradation of manufacturing facilities, and IT infrastructure investment. The Board of Directors approved utilisation of the remaining proceeds during Financial Year 2026-27.
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Interarch Building Solutions Limited (formerly known as Interarch Building Products Limited) has received the Monitoring Agency Report for the quarter ended March 31, 2026, from Crisil Ratings Limited, pertaining to the utilisation of proceeds from its Initial Public Offer (IPO). The report was submitted to the stock exchanges on May 15, 2026, in compliance with Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 41(2) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
IPO Issue Overview
The company's IPO, which ran from August 19, 2024, to August 21, 2024, comprised a fresh issuance of Rs 2,000.00 million in equity shares. After accounting for issue expenses of Rs 119.02 million, the net proceeds available for deployment stood at Rs 1,880.98 million. The report was prepared on the basis of a peer-reviewed independent chartered accountant certificate dated April 28, 2026, issued by M/s Bansal & Co LLP, Chartered Accountants (Firm Registration Number: 001113S/N500079).
| Particulars: | Amount (Rs in million) |
|---|---|
| Gross Proceeds from Fresh Issue: | 2,000.00 |
| Less: Issue Expenses: | 119.02 |
| Net Proceeds: | 1,880.98 |
Revised Allocation of IPO Proceeds
The original allocation of IPO proceeds has been revised multiple times following shareholder approvals. The most recent revision, approved via special resolution dated March 28, 2026, reallocated Rs 26.50 million from Object 1, Rs 102.90 million from Object 2, and Rs 0.42 million from Object 6 towards a new object — "Civil and PEB of AP Heavy Facility-II at Andhra Pradesh" — amounting to Rs 129.82 million, with a revised utilisation timeline of March 31, 2027.
The revised cost allocation across all objects is summarised below:
| Sr. No. | Object | Original Cost (Rs in million) | Revised Cost (Rs in million) |
|---|---|---|---|
| 1 | Financing capital expenditure towards setting up the Project | 585.33 | 220.93 |
| 2 | Upgradation of Kichha, Tamil Nadu (I & II) and Pantnagar Manufacturing Facilities | 192.46 | 284.76 |
| 3 | IT infrastructure upgradation | 113.92 | 113.92 |
| 4 | Incremental working capital requirements | 550.00 | 550.00 |
| 5 | General Corporate Purposes (GCP) | 430.37 | 486.97 |
| 6 | Manufacturing Facility-II at Andhra Pradesh (land acquisition) | — | 94.58 |
| 7 | Civil and PEB of AP Heavy Facility-II at Andhra Pradesh | — | 129.82 |
| Subtotal | 1,872.08 | 1,880.98 | |
| 8 | Issue Expenses | 127.92 | 119.02 |
| Total | 2,000.00 | 2,000.00 |
Utilisation Progress for the Quarter Ended March 31, 2026
During the quarter ended March 31, 2026, the company utilised Rs 7.79 million across various objects, bringing the cumulative utilisation to Rs 1,707.32 million out of the total Rs 2,000.00 million. The total unutilised amount as at the end of the reported quarter stood at Rs 292.68 million.
| Object: | Proposed Amount (Rs in million) | Utilised at Beginning of Quarter (Rs in million) | Utilised During Quarter (Rs in million) | Utilised at End of Quarter (Rs in million) | Unutilised (Rs in million) |
|---|---|---|---|---|---|
| Object 1 – Setting up the Project | 220.93 | 179.97 | 2.96 | 182.93 | 38.00 |
| Object 2 – Manufacturing Facility Upgradation | 284.76 | 220.24 | 4.80 | 225.04 | 59.72 |
| Object 3 – IT Infrastructure | 113.92 | 49.32 | 0.00 | 49.32 | 64.60 |
| Object 4 – Working Capital | 550.00 | 550.00 | 0.00 | 550.00 | 0.00 |
| Object 5 – GCP | 486.97 | 486.97 | 0.00 | 486.97 | 0.00 |
| Object 6 – AP Land Acquisition | 94.58 | 94.58 | 0.00 | 94.58 | 0.00 |
| Object 7 – Civil and PEB of AP Heavy Facility-II | 129.82 | 0.00 | 0.00 | 0.00 | 129.82 |
| Sub-Total | 1,880.98 | 1,581.08 | 7.76 | 1,588.84 | 292.14 |
| Issue Expenses | 119.02 | 118.45 | 0.03 | 118.48 | 0.55 |
| Total | 2,000.00 | 1,699.53 | 7.79 | 1,707.32 | 292.68 |
Deployment of Unutilised Proceeds
The unutilised IPO proceeds of Rs 292.68 million have been deployed in fixed deposits and bank accounts. As at March 31, 2026, the total market value of these investments stood at Rs 306.19 million, with earnings of Rs 38.02 million recorded.
| Instrument: | Amount Invested (Rs in million) | Earnings as on March 31, 2026 (Rs in million) | Return on Investment (%) | Market Value (Rs in million) |
|---|---|---|---|---|
| Fixed Deposit – YES Bank | 190.00 | 22.32 | 6.45 | 196.32 |
| Fixed Deposit – HDFC Bank | 102.10 | 15.70 | 5.75 | 109.29 |
| Balance – Monitoring Agency Account (HDFC Bank) | 0.03 | NA | NA | 0.03 |
| Balance – Current Account (IndusInd Bank) | 0.55 | NA | NA | 0.55 |
| Total | 292.68 | 38.02 | — | 306.19 |
Implementation Delays and No Deviations
The Monitoring Agency confirmed no deviation from the objects of the issue during the quarter ended March 31, 2026. However, delays in implementation were noted for three objects:
- Object 1 (Setting up the Project): Against an estimated utilisation of Rs 220.93 million by Fiscal 2026, only Rs 182.93 million had been utilised as at the end of the reported quarter.
- Object 2 (Manufacturing Facility Upgradation): Against an estimated utilisation of Rs 284.76 million by Fiscal 2026, only Rs 225.05 million had been utilised as at the end of the reported quarter.
- Object 3 (IT Infrastructure): Against an estimated utilisation of Rs 113.92 million by Fiscal 2025, only Rs 49.32 million had been utilised as at the end of the reported quarter.
In line with the Postal Ballot Notice dated February 19, 2026, the Board of Directors of the company, via a resolution dated May 13, 2026, accorded approval for utilisation of the unutilised proceeds during Financial Year 2026-27 towards the objects of the issue.
Historical Stock Returns for Interarch Building Solutions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.79% | -18.68% | -10.84% | -34.11% | -7.11% | +43.03% |
Will Interarch Building Solutions be able to fully deploy the remaining Rs 292.68 million in IPO proceeds within FY2026-27, particularly for the Civil and PEB of AP Heavy Facility-II project which has seen zero utilisation so far?
How might the repeated reallocation of IPO proceeds and implementation delays across Objects 1, 2, and 3 impact investor confidence and the company's long-term capacity expansion targets?
What operational or revenue impact can be expected once the Andhra Pradesh Heavy Facility-II becomes operational, and how does it fit into Interarch's broader market share strategy in the pre-engineered building sector?
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