ArisInfra Solutions Limited, established in 2021, is a technology-driven B2B platform revolutionizing the procurement and supply chain management of construction materials in India. The company is set to launch its Initial Public Offering (IPO) to raise ₹600 crore, aiming to strengthen its financial position and support future growth initiatives.
IPO Details and Timeline
ArisInfra Solutions plans to issue fresh equity shares worth ₹600 crore through this IPO. The specific details, including the price band, lot size, and exact dates, are yet to be finalized. However, the company has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), indicating that the IPO process is underway.
Key IPO Details:
- IPO Size: ₹600 crore
- Fresh Issue: 2,85,71,428 equity shares of ₹2 each
- Offer for Sale: Not applicable
- Face Value: ₹2 per share
- Listing Exchanges: BSE and NSE
- Lead Managers: JM Financial Limited, IIFL Securities Ltd, and Nuvama Wealth Management Limited
- Registrar: Link Intime India Private Limited
The funds raised from the IPO are intended for the following purposes:
- Debt Repayment: Partial or full repayment/prepayment of certain outstanding borrowings.
- Working Capital: Funding the company’s working capital requirements.
- Subsidiary Investment: Investment in the subsidiary, Buildme Infra Private Limited, for its working capital needs.
- Acquisition: Purchase of partial shareholding from existing shareholders of the subsidiary, ArisUnitern Re Solutions Private Limited.
- General Corporate Purposes: Funds allocated for general corporate activities and potential inorganic acquisitions.
Company Overview
ArisInfra Solutions Limited operates as a modern platform that assists construction and infrastructure companies in streamlining material procurement and financial management. By leveraging technology, ArisInfra aims to digitize and simplify the procurement process, offering an efficient end-to-end customer experience.
Product Portfolio:
The company’s product offerings include:
- Steel Products: GI pipes, MS wires, MS TMT bars
- Cement Products: Ordinary Portland Cement (OPC) in bulk
- Other Materials: Aggregates, ready-mix concrete, construction chemicals, walling solutions
Operational Highlights (April 1, 2021 – March 31, 2024):
- Total Materials Delivered: 10.35 million metric tonnes
- Number of Vendors: 1,458
- Number of Customers: 2,133
- Geographical Reach: 963 pin codes across cities like Mumbai, Bengaluru, and Chennai
Notable Clients:
- Capacit’e Infraprojects Limited
- J Kumar Infraprojects Limited
- Afcons Infrastructure Limited
- EMS Limited
- S P Singla Constructions Private Limited
Subsidiary:
ArisUnitern Re Solutions Private Limited offers value-added services tailored to real estate developers, including advisory, consultancy, marketing, and sales support.
Competitive Strengths
- Technological Innovation: Utilizing technology to transform the supply chain for construction materials.
- Market Positioning: Strategically positioned to capitalize on significant market opportunities.
- Product Diversification: Expanding third-party manufactured construction materials.
- Network Effects: Strong network effects ensuring long-term strategic benefits.
- Risk Management: Technology-enabled comprehensive credit risk analysis framework for operational efficiency.
- Experienced Leadership: Led by promoters and supported by an experienced professional team.
Financial Performance
Financial Information (Restated Consolidated):
| Particulars | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Assets (₹ crore) | 334.22 | 394.95 | 492.83 |
| Revenue (₹ crore) | 453.77 | 754.44 | 702.36 |
| Profit After Tax (₹ crore) | -6.49 | -15.39 | -17.30 |
| Net Worth (₹ crore) | 140.30 | 104.94 | 141.60 |
| Reserves and Surplus (₹ crore) | -6.01 | -41.36 | 139.77 |
| Total Borrowing (₹ crore) | 154.25 | 220.35 | 273.98 |
Note: Figures are as of March 31 for each respective year.
The company has experienced growth in assets and a substantial increase in reserves and surplus in FY 2024. However, it has also reported losses over the past three financial years, with the loss widening to ₹17.30 crore in FY 2024.
Key Performance Indicators (KPI):
- Debt-to-Equity Ratio: 1.45
- Return on Net Worth (RoNW): -13.14%
- Pre-IPO EPS: -3.74
- Post-IPO EPS: -2.31
- Pre-IPO P/E Ratio: -56.14
- Post-IPO P/E Ratio: -90.83
Conclusion
ArisInfra Solutions Limited is a promising player in the construction materials industry, leveraging technology to transform procurement processes. Its strong vendor network, diversified product offerings, and strategic market positioning make it a potential long-term growth prospect. However, investors must consider the company’s financial losses and competitive risks before making an investment decision.
Why Consider Investing in ArisInfra Solutions IPO?
- Technology-Driven Business Model improving supply chain efficiency.
- Expanding Market Reach with increasing client and vendor base.
- Strategic Growth Plans supported by IPO proceeds.
- Government Infrastructure Push creating demand for construction materials.
- Strong Investor Interest in the digital B2B supply chain segment.
Risks to Consider:
- Consistent Losses: The company has been reporting losses over the last three years.
- High Debt Levels: The debt-to-equity ratio is relatively high at 1.45.
- Competitive Market: Faces competition from traditional suppliers and emerging digital platforms.
- Regulatory and Economic Risks: Changes in government policies or economic downturns may impact operations.
Before investing, it’s advisable to assess your risk appetite and conduct thorough research.
FAQs
1. What is the IPO size of ArisInfra Solutions Limited?
The IPO size is approximately ₹600 crore, with a fresh issue of 2,85,71,428 equity shares.
2. How will ArisInfra use the IPO proceeds?
The funds will be used for debt repayment, working capital, subsidiary investment, acquisitions, and general corporate purposes.
3. Who are the key investors in ArisInfra Solutions Limited?
The IPO is led by JM Financial Limited, IIFL Securities Ltd, and Nuvama Wealth Management Limited.
4. What are ArisInfra’s main business segments?
ArisInfra provides technology-driven procurement solutions for steel, cement, aggregates, and other construction materials.
5. When is ArisInfra Solutions Limited IPO expected to be listed?
The listing is expected in mid-2025 on BSE and NSE.
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