ArisInfra Solutions Limited is a technology-enabled B2B procurement platform serving the fast-growing construction materials industry. The company simplifies bulk procurement of construction materials through a combination of technology and experienced domain professionals. With the increasing digitalization of procurement processes in India’s infrastructure space, ArisInfra aims to streamline and scale B2B construction material sourcing across the country.

The Initial Public Offering (IPO) of ArisInfra Solutions is a Book Built Issue of ₹499.60 crores, comprising entirely a fresh issue of 225.04 lakh equity shares. The IPO will open for subscription from June 18, 2025, to June 20, 2025. The allotment is expected on June 23, and the shares will list on both BSE and NSE on June 25, 2025.

IPO Details and Price Band

• IPO Type: Book Built Issue

• Fresh Issue: ₹499.60 crores (225.04 lakh equity shares)

• Offer for Sale: None

• IPO Price Band: ₹210 to ₹222 per share

• IPO Lot Size: 67 shares

• Retail Investment Minimum: ₹14,874

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

• Estimated Market Capitalization at Upper Band: ₹1,799.28 crores

• Lead Managers: JM Financial, IIFL Securities, Nuvama Wealth

• Registrar: MUFG Intime India Pvt Ltd

Company Background

ArisInfra Solutions operates a digital procurement platform for construction materials, providing procurement intelligence, logistics management, and vendor integration. With a focus on making procurement faster, scalable, and reliable, ArisInfra is positioned as a supply-chain partner for developers and contractors.

The company is led by Chairman and MD Ronak Kishor Morbia, who has over 13 years of experience in the construction materials supply domain. Supporting him are seasoned professionals including:

• Bhavik Jayesh Khara, Whole-time Director – Tax & Construction background

• Srinivasan Gopalan, CEO – 13 years in management

• Jitender Sharan, CTO – 20+ years in product development

• Amit Manhar Gala, CFO – 22+ years in finance

This seasoned leadership brings strategic expertise to support scalability and business growth.

Financial Performance Overview

The financials of ArisInfra Solutions present a mixed picture, with steady revenues but fluctuating profits and losses in recent years.

The first nine months of FY25 show a turnaround in profitability, but prior two fiscal years ended in losses, raising red flags for cautious investors.

Key Ratios and Valuation Metrics

• Pre-Issue EPS (FY24): ₹ -5.3

• Post-Issue EPS (FY24): ₹ -2.13

• Annualized EPS (FY25): ₹ 1.07

• Annualized P/E: 206.78x

• ROCE (FY24): 4.71%

• ROE (FY24): -16.50%

• RoNW: -13.14%

The valuation appears expensive, particularly with negative P/E on FY24 earnings and low return ratios, indicating risks in expecting strong listing gains or robust long-term profitability.

IPO Objectives

ArisInfra Solutions plans to deploy the net proceeds for the following objectives:

1. ₹204.60 crore to repay/prepay certain outstanding borrowings

2. ₹177.00 crore to fund working capital requirements

3. ₹48.00 crore for investment in subsidiary Buildmex-Infra Pvt Ltd

4. General corporate purposes, including potential inorganic acquisitions

This capital infusion aims to support both organic and strategic growth, especially improving working capital which is key in a procurement-heavy business model.

Grey Market Premium (GMP) & Subscription Status

• GMP (as of June 18, 2025): ₹ 0 (No premium)

• Expected Listing Price: ₹ 222 (equal to upper band)

• Day 1 Subscription (11:30 AM, June 18): 0.09 times

The flat GMP signals lukewarm investor interest, possibly due to prior losses and rich valuation. Real investor sentiment will be clearer as subscription data updates.

ArisInfra IPO Allotment – How to Check

Investors can check their IPO allotment status on or after June 23, 2025 using these steps:

1. Visit the registrar website (MUFG Intime India Pvt Ltd)

2. Select "ArisInfra Solutions Limited IPO" from dropdown

3. Enter Application No / PAN / DP ID–Client ID

4. Submit to view allotment status

Final Verdict: Apply or Avoid?

ArisInfra Solutions IPO presents a cautious investment case. Despite promising revenue growth and a tech-driven model, the historical losses, low returns on capital, and high valuation multiples raise concerns for investors.

With GMP at zero, negative P/E, and uncertain profitability, listing gains seem unlikely. Unless one has a high-risk appetite, it is advisable to avoid this IPO for now.

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.

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