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The initial public offering (IPO) of Arisinfra Solutions, a tech-driven B2B platform for bulk construction materials, kicked off for subscription on Wednesday, June 18. The three-day bidding process will conclude on June 20.
The company has fixed a price band of ₹210 to ₹222 per share for its ₹500 crore IPO. Investors can bid for a minimum of 67 shares in one lot and in multiples thereof.
ArisInfra Solutions IPO. Should you bid?
Bajaj Broking
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The brokerage has recommended a 'Subscribe' rating for well-informed investors with surplus liquidity. The brokerage advises such investors to consider deploying moderate funds for the long term, while cautioning that others may want to steer clear of this pricey offering.
ArisInfra Solutions operates as a technology-enabled B2B supplier of construction materials, a segment with a growing market. The company holds a virtual monopoly in its niche and is a preferred partner for many construction projects. While ArisInfra posted losses up to FY24, it has shown signs of a turnaround in the nine-month period of FY25 (9M FY25). However, the IPO appears aggressively priced, with a negative P/E ratio based on FY24 earnings.
Canara Bank Securities: Neutral
Canara Bank Securities has assigned a 'Neutral' rating to the IPO. The brokerage suggests that only investors with a long-term horizon and a high risk appetite should consider limited participation. Others are advised to wait for greater consistency in financial performance before taking a position.
ArisInfra utilises a tech-driven platform and an integrated vendor-customer network to offer a scalable and differentiated procurement model. The company has built commercial ties with reputed clients and shown steady growth in operational metrics. Nonetheless, key concerns include:
- A track record of historical losses
- Aggressive IPO pricing
- Uncertainty about sustaining recent profitability (first reported in 9M FY25)
- A working capital-intensive business model
- Muted return ratios
Arihant Capital: Neutral
Arihant Capital has also given a 'Neutral' recommendation on the IPO.
ArisInfra is pursuing expansion into new micromarkets and underpenetrated regions, aiming to increase its footprint in India's fragmented $235–255 billion construction materials sector. The brokerage leverages inefficiencies in the unorganised market through its technology platform, introducing:
- Demand-supply auto-syndication
- Credit-linked pricing
- Advanced hardware integrations for greater operational efficiency
Despite a scalable business model and a strong network, valuation remains a key concern.
Arisinfra Solutions IPO GMP
Ahead of the issue opening, the company's shares were trading with a grey market premium of ₹25, indicating a premium of 11% over the issue price.
Arisinfra Solutions IPO anchor investors
Ahead of the issue opening, Arisinfra Solutions has also secured ₹225 crore from anchor investors by allocating 1,01,26,946 shares at ₹222 per share to 15 funds.
Among these investors are notable names such as Astorne Capital VCC, Niveshaay Hedgehogs Fund, and Citigroup Global Markets.
Arisinfra Solutions IPO details
This public offer is a pure fresh issue, aiming to raise ₹499.59 crore, with an expected market capitalisation of ₹1,800 crore at the upper end of the price band.
Arisinfra Solutions plans to allocate the IPO proceeds towards financial restructuring, including ₹205 crore for debt repayment, ₹177 crore for working capital, and ₹48 crore for investment in its subsidiary, Buildmex Infra.
Incorporated in 2021, ArisInfra Solutions is a modern platform that helps construction and infrastructure companies buy materials easily and manage their finances smartly.
It operates across 20 cities with 1,700 vendors and a customer base exceeding 2,600, including names like L&T, Afcons, and Ashoka Buildcon. Over 14 million metric tonnes of material have been delivered through its platform till December 2024.
As per filings, the company reported revenue of ₹1,203 crore in 9MFY25, with a net profit of ₹6.53 crore, after losses in FY23 and FY22.
JM Financial, IIFL Capital Services, Nuvama Wealth Management are the book running lead managers of the Arisinfra Solutions IPO, while MUFG Intime India (Link Intime) is the registrar for the issue.
The allotment for the Arisinfra Solutions IPO is expected to be finalised on June 23. Arisinfra Solutions IPO will be listing on BSE, NSE with a tentative listing date fixed as June 25.
