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
| Particulars | Details |
|---|---|
| Issue Size | ₹600 crore |
| Face Value | ₹2 per equity share |
| Price Band | ₹200 to ₹210 per equity share |
| Lot Size | 70 shares |
| Minimum Investment | ₹14,700 |
| Listing At | BSE and NSE |
| Issue Type | Book Built Issue IPO |
| Offer for Sale | Not applicable |
| Fresh Issue | ₹600 crore |
| Retail Allocation | 10% |
| QIB Allocation | 75% |
| NII Allocation | 15% |
IPO Timeline
| Event | Date |
| Issue Opening Date | February 3, 2025 |
| Issue Closing Date | February 5, 2025 |
| Basis of Allotment | February 6, 2025 |
| Initiation of Refunds | February 7, 2025 |
| Credit of Shares to Demat | February 8, 2025 |
| Listing Date | February 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.
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.
Financial and Operational Performance
| Financial Metric | FY 2023 | FY 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 Name | Revenue (₹ Crore) | Net Profit/Loss (₹ Crore) | EBITDA Margin (%) |
| Arisinfra Solutions Ltd | 696.84 | -17.33 | 5.56 |
| 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:
- 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.
- 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.
- 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.
