BigBloc Construction Ltd’s wholly owned subsidiary, StarBigBloc Building Material Ltd, has taken a major step towards its next phase of growth by securing shareholder approval to raise funds through an Initial Public Offering (IPO).
StarBigBloc Building Material Ltd, a wholly owned subsidiary of BigBloc Construction Limited, has received shareholder approval to raise funds through an Initial Public Offering (IPO). The green light came during the company’s Extraordinary General Meeting (EGM) held on 13 June 2025. The move is aimed at unlocking shareholder value, securing growth capital, and potentially enhancing the overall valuation of the parent company, BigBloc Construction Ltd.
The IPO proposal remains subject to necessary regulatory approvals, prevailing market conditions, and other clearances.
BigBloc Construction share price was trading down by 1.33% at ₹69.07, after hitting an intraday high of ₹72.32 on the NSE.
Commenting on the development, Mr Mohit Saboo, Director and Chief Financial Officer of BigBloc Construction Ltd, stated, “This is a significant milestone in our growth journey. The IPO will enable StarBigBloc Building Materials Limited to access capital markets, drive the next phase of expansion, and solidify its market position across India. This step aligns with our long-term vision to scale efficiently and establish our stronghold in the building material sector. The AAC block industry is set to play a pivotal role in India's construction sector, and our company is ready for a significant leap forward.”
Incorporated in 2015, BigBloc Construction Ltd is one of the largest and only listed manufacturers of Aerated Autoclaved Concrete (AAC) blocks in India. The company operates with a combined annual capacity of 1.3 million cubic metres across its manufacturing units in Gujarat (Kheda, Umargaon, Kapadvanj) and Maharashtra (Wada). For the financial year 2024–25, the company reported revenue from operations of ₹224.6 crore.
StarBigBloc Building Material Ltd operates a dedicated AAC block manufacturing plant in Kheda, near Ahmedabad. The plant has an installed capacity of 250,000 cubic metres per annum and currently serves key markets in Gujarat, Udaipur in Rajasthan, and Indore in Madhya Pradesh.
In May 2024, the Board of Directors of StarBigBloc approved a proposal to raise funds via an SME IPO or a preferential issue, subject to approvals. The company is targeting an ambitious scale-up, aiming to grow its production capacity from 250,000 to over 1.2 million cubic metres per annum in the next 4 to 5 years.
As part of its long-term roadmap, StarBigBloc is targeting ₹428 crore in revenue by FY27–28, with a projected EBITDA of ₹125 crore and a net profit of ₹80 crore.
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Adding to its expansion drive, StarBigBloc has recently received all the necessary clearances for its upcoming project in Indore, Madhya Pradesh. These include Town Planning Clearance (TPC), land registration, Gram Panchayat approval, and the Non-Agricultural (NA) order for the land. The company is set to establish India’s largest greenfield AAC block manufacturing facility at this site.
This development marks a crucial milestone for the company, reinforcing its leadership in the sustainable building materials sector and highlighting its commitment to strengthening its pan-India presence.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jun 17, 2025, 1:54 PM IST
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