StarBigBloc Sets Sights on IPO as It Builds the Future of Green Construction

StarBigBloc Building Material Ltd, a subsidiary firm of BigBloc Construction Ltd, has approved an exercise of raising funds through an SME IPO or preferential issue. This is for supporting its aggressive growth plans, including India's largest greenfield AAC block making facility in Indore, Madhya Pradesh.

 

Key Highlights:

 

- IPO in the Works: The board approved the fundraising plan in May 2024. The IPO or preferential issue will be finalized based on market conditions and regulatory approvals.
 

- Huge Expansion: StarBigBloc will increase its production capacity from 2.5 lakh cubic meters to more than 12 lakh cubic meters per annum in 4–5 years.
 

- New Plants Underway: There are two new production facilities in the pipeline—one at Chennai and one at North India (Delhi or Haryana)—each with a production capacity of 5 lakh cubic meters annually.
 

- Indore Project Milestone: The company has received all key approvals for its Indore facility, ranging from land registration to town planning clearance to Gram Panchayat approval. The ₹6 crore land comprises 57,500 sq. meters.
 

- Financial Aims: StarBigBloc aims to achieve revenues of ₹428 crore, EBITDA of ₹125 crore, and net profit of ₹80 crore in FY27–28.
 

- Industry Outlook: Since India's AAC block market is expected to grow 15–20% every year, the company will be a major green building material contributor.

 

Sources: Business Standard, PNN Digital.