StarBigBloc Building Material gets shareholder approval to launch IPO

NEW DELHI: StarBigBloc Building Material, a wholly-owned subsidiary of BigBloc Construction has received shareholder’s approval to raise funds through an initial public offering (IPO).

Mohit Saboo, director and chief financial officer of the company said, "The IPO will enable StarBigBloc Building Materials Limited to access capital markets, drive next phase of expansion, and solidify its market position across India."

BigBloc Construction has a 1.3 million CBM annual capacity across plants in Gujarat (Kheda, Umargaon, Kapadvanj) and Maharashtra (Wada). For FY25, the company reported revenue from operations of ₹224.6 crore.

StarBigBloc Building Material currently operates a manufacturing facility in Kheda, near Ahmedabad, with an installed capacity of 250,000 cubic meters per annum.

In May 2024, the board of directors of StarBigBloc Building Material approved a proposal to raise funds through an SME IPO or preferential Issue, subject to necessary approvals and prevailing market conditions. The company aims at increasing its production capacity from the current 250,000 cubic meters per annum to over 1.2 million cubic meters per annum over the next 4–5 years. The company is targeting revenues of ₹428 crore by FY27–28, with a projected EBITDA of ₹125 crore and net profit of ₹80 crore.

It plans to establish greenfield AAC Blocks manufacturing facility in Indore. Earlier in February 2025, the company had acquired approximately 57,500 sq meters land in Nimrani, Madhya Pradesh for the purpose of AAC Blocks business expansion in central India.