Arisinfra Solutions Limited IPO

Arisinfra Solutions Limited IPO
Arisinfra Solutions Limited IPO

Introduction

Arisinfra Solutions Limited, a technology-enabled construction materials provider, is set to launch its Initial Public Offering (IPO) to raise ₹600 crore. This move aims to fuel the company’s growth and strengthen its market position.

IPO Details

ParticularsDetails
Issue Size₹600 crore
Face Value₹2 per equity share
Price Band₹200 to ₹210 per equity share
Lot Size70 shares
Minimum Investment₹14,700
Listing AtBSE and NSE
Issue TypeBook Built Issue IPO
Offer for SaleNot applicable
Fresh Issue₹600 crore
Retail Allocation10%
QIB Allocation75%
NII Allocation15%

IPO Timeline

EventDate
Issue Opening DateFebruary 3, 2025
Issue Closing DateFebruary 5, 2025
Basis of AllotmentFebruary 6, 2025
Initiation of RefundsFebruary 7, 2025
Credit of Shares to DematFebruary 8, 2025
Listing DateFebruary 10, 2025

About Arisinfra Solutions Limited

Overview

Founded in 2021, Arisinfra Solutions Limited leverages artificial intelligence and machine learning to streamline the procurement of construction materials. The company connects real estate and infrastructure developers with a vast network of vendors, digitizing the supply chain in the construction industry.

Arisinfra Solutions Limited product
Arisinfra Solutions Limited product

Business Operations

Arisinfra Solutions Limited offers a diverse range of construction materials, including GI pipes, MS wires, MS TMT bars, OPC bulk cement, and other essential supplies.

Between April 1, 2021, and March 31, 2024, the company successfully delivered over 10.35 million metric tonnes of materials such as aggregates, ready-mix concrete, steel, cement, construction chemicals, and walling solutions. It has partnered with 1,458 vendors to serve 2,133 customers across 963 pin codes, including major cities like Mumbai (Maharashtra), Bengaluru (Karnataka), and Chennai (Tamil Nadu).

The company’s key clients include Capacit’e Infraprojects Limited, J Kumar Infraprojects Limited, Afcons Infrastructure Limited, EMS Limited, and S P Singla Constructions Private Limited.

ArisUnitern Re Solutions Private Limited, a subsidiary of Arisinfra, specializes in value-added services tailored for real estate developers, including advisory, consultancy, marketing, and sales support, reinforcing the company’s role as an end-to-end service provider in the construction industry.

Management Team

The company’s leadership comprises experienced professionals dedicated to revolutionizing the construction materials industry. The promoters include founders Ronak Morbia and Bhavik Khara, along with Pharmeasy CEO Siddharth Shah and his family members.

Aris_Infra founder

Financial and Operational Performance

Financial MetricFY 2023FY 2024
Revenue from Operations₹746.07 crore₹696.84 crore
Net Profit/Loss-₹15.48 crore-₹17.33 crore
EBITDA-₹0.11 crore₹13.01 crore
EBITDA Margin-0.01%5.56%

In FY 2024, Arisinfra reported a net loss of ₹17.33 crore, an increase from the ₹15.48 crore loss in FY 2023. The revenue from operations declined by 6.5% to ₹696.84 crore in FY 2024, down from ₹746.07 crore in the previous fiscal year. Despite the decline in revenue, the company achieved an EBITDA of ₹13.01 crore in FY 2024, indicating improved operational efficiency.

Future Outlook

With the Indian government’s increased focus on infrastructure development, Arisinfra Solutions is poised for significant growth. The company plans to utilize the IPO proceeds for:

  • Debt Repayment: Allocating ₹204.6 crore to reduce existing liabilities.
  • Working Capital Requirements: Investing ₹177 crore for operational needs and ₹48 crore for its subsidiary, Buildmex-Infra.
  • Strategic Acquisitions: Setting aside funds for potential inorganic growth opportunities.

These initiatives aim to strengthen Arisinfra’s financial position and expand its market presence.

Objects of the Issue

The primary objectives for raising funds through the IPO include:

  • Funding Working Capital Requirements: To support the increasing scale of operations.
  • Debt Repayment: Reducing existing liabilities to strengthen the balance sheet.
  • General Corporate Purposes: Addressing other strategic initiatives and corporate needs.

Peer Comparison

Company NameRevenue (₹ Crore)Net Profit/Loss (₹ Crore)EBITDA Margin (%)
Arisinfra Solutions Ltd696.84-17.335.56
Infra.Market[Data Not Public][Data Not Public][Data Not Public]
OfBusiness[Data Not Public][Data Not Public][Data Not Public]

Note: Specific financial data for peers is not publicly disclosed.

Valuation of the Company in this IPO

The valuation of Arisinfra Solutions Limited is influenced by its financial health, anticipated growth, and prevailing market conditions. Analysts consider metrics such as the Price-to-Earnings (P/E) ratio, Price-to-Book (P/B) ratio, and Return on Equity (ROE) to gauge the company’s worth. However, given the company’s net losses in recent years, traditional P/E ratios may not be applicable. Therefore, investors might place greater emphasis on revenue growth, EBITDA improvements, and market positioning when assessing the IPO pricing.

How to Apply for This IPO

Investors can apply for the Arisinfra Solutions IPO through the following methods:

  1. Via ASBA (Application Supported by Blocked Amount):
    • Log in to your online banking account.
    • Navigate to the IPO section and select ‘Arisinfra Solutions Limited IPO’.
    • Enter the required details such as bid price, lot size, and confirm your application.
  2. Through a Stockbroker:
    • Use trading platforms like Zerodha, Upstox, Angel One, etc.
    • Apply through the IPO section by filling in the details and linking your UPI ID.
  3. Using UPI-Based Applications:
    • Open UPI-enabled apps like Google Pay, PhonePe, or BHIM.
    • Select ‘IPO’ and enter the required details to submit your bid.

Conclusion

Arisinfra Solutions Limited IPO presents an opportunity for investors looking to invest in a growing tech-driven construction materials provider. While the company has shown resilience and operational improvements, investors should carefully evaluate the risks and financials before applying. The IPO proceeds are strategically planned for expansion, debt reduction, and working capital, which can potentially enhance future profitability.

FAQs

Q1: What is the price band for the Arisinfra Solutions IPO?
A: The price band is set between ₹200 and ₹210 per equity share.

Q2: What is the minimum investment required?
A: The minimum investment is ₹14,700 for a lot size of 70 shares.

Q3: When will the IPO open and close?
A: The IPO will open on February 3, 2025, and close on February 5, 2025.

Q4: Where will Arisinfra Solutions be listed?
A: The IPO will be listed on both the BSE and NSE.

Q5: How can I check the allotment status?
A: Investors can check the allotment status through the registrar’s website or their respective trading platform after the allotment date.

Q6: What are the risks associated with this IPO?
A: Potential risks include competition in the construction materials sector, market volatility, and operational challenges in maintaining profitability.

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