ArisInfra Solutions Limited, a technology-enabled B2B procurement platform in the construction materials space, has launched its Initial Public Offering (IPO) from June 18 to June 20, 2025, aiming to raise ₹499.60 crore entirely through fresh issue of equity shares. The IPO marks the company’s debut on the BSE and NSE, with a tentative listing date of June 25, 2025.

Company Overview

ArisInfra Solutions is a business-to-business (B2B) company focused on digitising the procurement of bulk construction materials. It combines technology and domain expertise to simplify material acquisition processes for clients in the infrastructure and construction sectors.

The company’s platform offers:

• Procurement automation

• Real-time order tracking

• Price transparency

• End-to-end logistics coordination

The model caters to bulk buyers, contractors, and builders, allowing them to order construction materials such as cement, steel, sand, bricks, and more via a tech-driven platform.

IPO Details and Structure

• Issue Size: ₹499.60 crore (100% Fresh Issue of 2.25 crore shares)

• Price Band: ₹210 to ₹222 per share

• Lot Size: 67 shares

• Retail Minimum Investment: ₹14,874

• HNI Minimum Investment: 14 lots (938 shares) = ₹2,08,236

The market capitalisation at the upper end of the IPO price band will be approximately ₹1,799.28 crore.

IPO Timeline

The lead managers to the issue are:

• JM Financial Ltd

• IIFL Securities Ltd

• Nuvama Wealth Management Ltd

The registrar is MUFG Intime India Pvt Ltd.

Management and Leadership

ArisInfra’s leadership brings strong industry expertise:

• Ronak Kishor Morbia (Chairman & MD) – 13+ years in construction material supply

• Bhavik Jayesh Khara (Whole-time Director) – 6+ years in tax and construction materials

• Srinivasan Gopalan (CEO) – 13+ years in operations and strategic management

• Jitender Sharan (CTO & Product Head) – 20+ years in tech and product development

• Amit Manhar Gala (CFO) – 22+ years in finance and audit

The combined experience of these individuals lends strategic direction and operational efficiency to ArisInfra.

Financial Performance

Revenue from Operations (₹ in Million):

• 9M FY2025: ₹5,577.64

• FY2024: ₹7,023.56

• FY2023: ₹7,544.39

• FY2022: ₹4,537.66

EBITDA (₹ in Million):

• 9M FY2025: ₹630.26

• FY2024: ₹357.43

• FY2023: ₹342.10

• FY2022: ₹266.34

Profit After Tax (₹ in Million):

• 9M FY2025: ₹65.26

• FY2024: ₹-172.98

• FY2023: ₹-153.92

• FY2022: ₹-64.87

While revenues have shown moderate stability, the company has been loss-making for three consecutive years, turning a minor profit only in the latest 9-month period of FY2025.

Key Financial Ratios

• Pre-Issue EPS (FY24): ₹ -5.3

• Post-Issue EPS (FY24): ₹ -2.13

• Pre-Issue P/E: -41.89x

• Post-Issue P/E: -104.02x

• Annualised EPS: ₹1.07

• Annualised P/E: 206.78x

• ROCE: 4.71%

• ROE: -16.50%

• RoNW: -13.14%

These negative return metrics suggest that the IPO is fully priced or overpriced based on earnings and capital efficiency.

Grey Market Premium (GMP) and Investor Sentiment

As of June 18, the GMP stands at ₹0, indicating no unofficial premium or speculative enthusiasm. This may stem from:

• Weak profit history

• Negative EPS

• Concerns over high valuation

The listing gain potential appears very low, and institutional or retail euphoria has not yet built up around this IPO.

Use of IPO Proceeds

The proceeds from the fresh issue will be used for:

• Platform development and tech upgrades

• Expansion of supply chain and warehousing capabilities

• Working capital needs

• Repayment of certain borrowings

• General corporate purposes

Strengths

• Operates in a niche B2B vertical with large untapped digitisation potential

• Scalable, asset-light model

• Experienced leadership across operations, tech, and finance

• Presence in a high-growth industry linked to infrastructure and housing

Risks

• Consistent financial losses, only recently turning profitable

• Valuation appears steep with negative P/E and low return ratios

• Highly competitive sector with low barriers to entry

• No current Grey Market Premium, showing low retail buzz

• Dependence on project-based revenue, which may be inconsistent

• Post-issue dilution results in weak earnings visibility

Analyst Verdict

Based on:

• Negative return ratios

• Questionable earnings sustainability

• Fully priced IPO

• No active grey market premium

the IPO appears unattractive for both listing gains and long-term investment at this stage.

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel, Mayasheel Ventures.

The Current active IPO are  ArisInfra Solutions, Influx Healthtech, Eppeltone Engineers.

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