ArisInfra Solutions, a B2B technology-enabled company specializing in simplifying the procurement of construction materials, has successfully concluded its Initial Public Offering (IPO). The IPO opened on June 18, 2025, and closed on June 20, 2025, with the issue being subscribed 2.65 times by investors across categories. The company now gears up for its listing on BSE and NSE on June 25, 2025, with the IPO price band set between ₹210 and ₹222 per share. The upper band of ₹222 implies a market capitalization of ₹1,799.28 crores.

The issue consists entirely of a fresh issue of 225.04 lakh equity shares, aggregating to a total of ₹499.60 crores. Retail investors had to apply for a minimum of 67 shares, costing ₹14,874, while High-Net-Worth Individuals (HNIs) were required to apply for a minimum of 14 lots (938 shares), amounting to ₹2,08,236. The book running lead managers to the issue were JM Financial Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited, and MUFG Intime India Private Limited acted as the registrar.

As of 7:00 PM on June 20, 2025, the live subscription status showed strong demand, particularly among retail and institutional investors. Although the Grey Market Premium (GMP) was reported to be ₹0, experts suggest this is due to the evolving nature of the unregulated grey market and doesn't reflect the actual demand for the shares in official trading.

About ArisInfra Solutions Limited

ArisInfra Solutions operates in a growing construction materials market and leverages a unique combination of technology and human expertise to deliver end-to-end procurement solutions. Their platform digitizes the bulk procurement process, making it efficient and transparent. This innovative approach helps eliminate middlemen and reduces costs for developers and contractors.

Between April 1, 2021, and March 31, 2024, the company delivered 10.35 million metric tonnes (MT) of construction materials including aggregates, RMC (ready-mix concrete), cement, steel, walling solutions, and construction chemicals. They catered to 2,133 customers across 963 pin codes and partnered with 1,458 suppliers, highlighting a scalable and market-ready business model.

Prominent clients include Capacit’e Infraprojects, Afcons Infrastructure, EMS Limited, Wadhwa Group, and Puranik Builders, while top vendors include Sun-x Concrete, Normet India, and G S Ispat. The company also operates a subsidiary, ArisUnitern Re Solutions, which offers value-added services such as consultancy, marketing, and sales support for real estate developers.

Use of IPO Proceeds

The company plans to utilize the net proceeds from the IPO towards:

1. ₹204.60 crores for repayment or prepayment of borrowings.

2. ₹177.00 crores for working capital requirements.

3. ₹48.00 crores for investment in its subsidiary Buildmex Infra Private Limited.

4. The remaining for general corporate purposes and unidentified inorganic acquisitions.

Industry Overview and Market Opportunity

The industrial B2B construction materials market in India was worth USD 265 to 285 billion in 2023, with 45% to 50% of spending channeled toward infrastructure and real estate construction. The infrastructure market alone was USD 100 to 110 billion, expected to grow at 10% to 12% CAGR, reaching USD 170 to 195 billion by 2028.

On the other hand, the real estate construction market (both residential and commercial) was valued at USD 165 to 175 billion in 2023 and is projected to grow to USD 230 to 250 billion by 2028. Segments like energy, transport, urban infrastructure, and irrigation contribute significantly to this growth.

The raw material segment—including steel, cement, aggregates, and construction chemicals—forms a major chunk of this market, valued at USD 230 to 280 billion in 2023, and expected to grow at 5% to 8% CAGR, reaching USD 290 to 340 billion by 2028. This aligns well with ArisInfra’s product offerings, placing it at the heart of this high-growth segment.

Business Strengths

ArisInfra Solutions stands out due to its:

• Technology-driven supply chain platform using AI and ML.

• Scalable business model suited for nationwide expansion.

• Entry into third-party manufacturing to ensure better quality and margins.

• Strong network effects through customer-vendor integration.

• Robust credit risk assessment tools that minimize defaults.

• Experienced leadership, with Ronak Kishor Morbia and Bhavik Jayesh Khara leading operations and strategy.

Strategic Roadmap

To maintain and accelerate growth, the company plans to:

• Optimize product mix by focusing on higher-margin offerings.

• Form strategic alliances with third-party manufacturers to expand the portfolio.

• Leverage vendor networks for demand generation.

• Improve working capital efficiency using digital finance tools.

• Expand into new geographies and deepen market penetration.

• Use technology to automate pricing, dispatch, and inventory processes.

Risk Factors

Despite its strengths, ArisInfra faces several risks:

1. Heavy dependency on key materials like aggregates, RMC, and steel, which together account for over 68% of revenue.

2. Geographical concentration in three states—Maharashtra, Karnataka, and Tamil Nadu—making it vulnerable to regional economic changes.

3. Third-party manufacturing reliance, contributing 17.57% of revenue, poses supply chain risks.

4. Vendor dependence, with top 10 vendors accounting for 38.25% of purchases.

5. Cyclic nature of demand tied to real estate and infrastructure sectors.

6. Limited contribution from value-added services, currently at 3.56% of revenue.

Final Thoughts

The ArisInfra Solutions IPO, which has been subscribed 2.65 times, reflects strong investor interest. With a robust business model, scalable technology platform, and a strong grip on the construction materials supply chain, ArisInfra is well-positioned to tap into India’s rapidly growing infrastructure and real estate markets.

As investors await the share allotment on June 23, 2025, and the listing on June 25, 2025, the focus will be on how the stock performs in the secondary market. While the Grey Market Premium remains neutral, the fundamentals suggest that ArisInfra Solutions holds promising long-term potential as a tech-driven B2B leader in India’s booming construction space.

The Upcoming IPOs in this week and coming weeks are Pushpa Jewellers, Cedaar Textile, Adcounty Media India, Marc Loire Fashions, Indogulf Cropsciences, Moving Media Entertainment, Rama Telecom, Supertech EV, Valencia India, Neetu Yoshi, PRO FX Tech, Suntech Infra Solutions, Ace Alpha Tech, Sambhav Steel Tubes, HDB Financials.

The Current active IPO are  Abram Food, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Globe Civil Projects, Ellenbarrie Indutrial Gases, Kalpataru,AJC Jewel, Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures.

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