ArisInfra Solutions, a technology-enabled B2B company operating in the growing construction materials sector, is set to launch its Initial Public Offering (IPO) with a book-built issue of ₹600.00 crores. The company focuses on simplifying and digitizing the procurement process for bulk quantities of construction materials, ensuring an efficient end-to-end experience through a blend of technology and human expertise.

The ArisInfra Solutions IPO subscription period opens on March 20, 2025, and closes on March 25, 2025. The allotment of shares is expected to be finalized on March 26, 2025, and the company's shares will be listed on the BSE and NSE with a tentative listing date of March 28, 2025. The IPO price bands are yet to be announced.

Company Overview and Management

ArisInfra Solutions is led by an experienced management team that drives its strategic growth and operational efficiency.

• Chairman & MD: Ronak Kishor Morbia, with over 13 years of expertise in construction material supply.
• Whole-time Director: Bhavik Jayesh Khara, with 6+ years of experience in tax accounting and construction materials.
• CEO: Srinivasan Gopalan, with 13+ years in management and business development.
• CTO & Product Head: Jitender Sharan, boasting 20+ years in product development and technology management.
• CFO: Amit Manhar Gala, with 22+ years of experience in finance and financial strategy.

Financial Performance

The revenues from operations for the fiscals ending 2024, 2023, and 2022 were ₹7,023.56 Lakh, ₹7,544.39 Lakh, and ₹4,537.66 Lakh respectively. The EBITDA for the same fiscals stood at ₹183.15 Lakh, ₹76.92 Lakh, and ₹3.36 Lakh, respectively. The Profit after Tax (PAT) showed a declining trend with figures of ₹-172.98 Lakh, ₹-153.92 Lakh, and ₹64.87 Lakh in 2024, 2023, and 2022 respectively.

IPO Objectives and Fund Utilization

The net proceeds from the IPO will be utilized for the following purposes:

1. ₹2,046.00 million for repayment/prepayment of certain outstanding borrowings.
2. ₹1,770.00 million to fund the company's working capital requirements.
3. ₹480.00 million for investment in Buildmex-Infra Private Limited, a subsidiary, to fund its working capital requirements.
4. ₹204.00 million for the purchase of partial shareholding from existing shareholders of the subsidiary, ArisUnitern Re Solutions Private Limited.
5. Remaining proceeds for general corporate purposes and unidentified inorganic acquisitions.

IPO Details and Subscription Period

The subscription for ArisInfra Solutions IPO will be open from March 20, 2025, to March 25, 2025. The allotment is expected to be finalized on March 26, 2025, with the listing date set for March 28, 2025. JM Financial Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited are the book running lead managers for the IPO, while Link Intime India Private Limited is the registrar.

Grey Market Premium (GMP) and Listing Gains

The Grey Market Premium (GMP) of ArisInfra Solutions IPO is currently projected at ₹0, indicating that no significant price discovery has occurred in the unregulated grey market. Since trading in the grey market is based on supply and demand dynamics, there is no real indication of listing gains or price movements before the official listing on stock exchanges.

Allotment Date and How to Check Allotment Status

The IPO allotment date is set for March 26, 2025. Investors can check their allotment status by following these steps:

• Visit the Registrar's IPO allotment page.
• Select ArisInfra Solutions Limited IPO from the dropdown menu.
• Enter your application number, PAN, or DP Client ID.
• Submit the details to check the allotment status.

ArisInfra Solutions IPO Review and Market Potential

With the Indian construction sector witnessing rapid growth, ArisInfra Solutions aims to capitalize on the increasing demand for digital procurement solutions. The company's innovative approach combines technology with human expertise to streamline the procurement process for bulk construction materials, positioning it as a leader in this niche sector. Despite showing fluctuating financial performance in the past three years, the company's focus on expansion, technology enhancement, and inorganic growth is expected to drive future profitability.

Risk Factors and Considerations

Potential investors should consider the following risks:

• Financial losses in previous fiscals may affect future performance.
• Dependence on the construction industry exposes the company to market fluctuations.
• Competitive market dynamics may impact profit margins.

Conclusion

ArisInfra Solutions IPO offers a promising opportunity for investors seeking exposure to the digital procurement sector in the construction materials market. With a strong leadership team, a well-defined growth strategy, and a focus on technological advancements, ArisInfra Solutions is poised to create long-term value for its stakeholders. However, investors should carefully evaluate the company’s financials and market position before making an investment decision.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Grand Continental Hotels, Rapid Fleet Management Services, Active Infrastructures Limited, Desco Infratech Limited.

The Current active IPO are Paradeep Parivahan, Divine Hira Jewellers.

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