ArisInfra Solutions Limited, a B2B technology-driven construction material procurement company, has closed its ₹499.60 Crores Book Built IPO, with a final subscription tally of 2.65 times. Despite operating in a high-potential construction tech sector, the IPO received a lukewarm response, and its Grey Market Premium (GMP) remained stagnant at ₹0, indicating low expectations for listing gains.

The IPO, consisting entirely of a Fresh Issue of 2.25 Crore equity shares, was open for subscription between June 18 and June 20, 2025. The allotment process is expected to conclude by June 23, 2025, and the shares are slated to be listed on both BSE and NSE on or around June 25, 2025.

The IPO price band was set between ₹210 and ₹222 per equity share, and the lot size was fixed at 67 shares per lot, with a minimum retail investment of ₹14,874. High Net Worth Individuals (HNIs) had to apply for a minimum of 14 lots (938 shares), translating to an investment of ₹2,08,236. At the upper price band of ₹222 per share, the company’s market capitalisation stands at ₹1,799.28 Crores.

The IPO was managed by JM Financial Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited as the book running lead managers, while MUFG Intime India Private Limited was appointed as the registrar to the issue.

Company Overview

ArisInfra Solutions is positioned in the rapidly digitizing infrastructure space, with a technology-first approach to construction material procurement. The company simplifies bulk procurement through a tech-enabled platform, offering end-to-end digital solutions to construction businesses. Combining human expertise with software-driven transparency, ArisInfra aims to address inefficiencies in traditional procurement.

This B2B platform serves a growing Indian construction industry, targeting developers, contractors, and material suppliers. It connects the dots between demand, sourcing, and delivery with centralized procurement, structured pricing, and faster execution.

Leadership and Management

The firm is led by a competent leadership team, with Ronak Kishor Morbia serving as Chairman & MD with over 13 years of experience in construction material supply. Other senior leadership includes:

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

• Srinivasan Gopalan (CEO) – 13+ years in business development and operations

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

• Amit Manhar Gala (CFO) – 22+ years in finance and strategic financial planning

Together, they bring domain expertise and leadership critical to ArisInfra’s scalability in a competitive sector.

Financial Performance Overview

ArisInfra Solutions’ financial data reveals a mixed performance with improving revenues but ongoing net losses over the past three fiscal years.

Revenue (in ₹ Million):

• FY22: ₹4,537.66

• FY23: ₹7,544.39

• FY24: ₹7,023.56

• 9M FY25 (up to Dec 2024): ₹5,577.64

EBITDA (in ₹ Million):

• FY22: ₹266.34

• FY23: ₹342.10

• FY24: ₹357.43

• 9M FY25: ₹630.26

Profit After Tax (in ₹ Million):

• FY22: ₹-64.87

• FY23: ₹-153.92

• FY24: ₹-172.98

• 9M FY25: ₹65.26

While revenue and EBITDA are on an upward trend, the company posted losses in FY22, FY23, and FY24, turning profitable only in the first nine months of FY25.

Valuation Metrics

The key performance indicators are not very encouraging when compared with industry peers:

• Pre-Issue EPS (FY24): ₹ -5.3

• Post-Issue EPS (FY24): ₹ -2.13

• Pre-Issue P/E Ratio: -41.89x

• Post-Issue P/E Ratio: -104.02x

• Annualised EPS (FY25): ₹1.07

• Annualised P/E (FY25): 206.78x

• ROCE (FY24): 4.71%

• ROE (FY24): -16.50%

• Return on Net Worth (RoNW): -13.14%

The data indicates that the IPO is aggressively priced, with valuation multiples significantly above average for a company with volatile profitability.

Grey Market Premium (GMP) Analysis

The GMP for ArisInfra Solutions IPO remained flat at ₹0, showing no premium or anticipation of listing gains. This tepid response from the grey market often correlates with low retail interest and market caution, especially given the company's financial track record and high valuation. Investors should be cautious in using GMP as an indicator, as it is speculative and unregulated.

IPO Objectives and Fund Utilisation

The net proceeds of the issue will be deployed as follows:

1. ₹2,046 Million for repayment or prepayment of certain borrowings.

2. ₹1,770 Million towards working capital requirements of ArisInfra Solutions.

3. ₹480 Million investment into Buildmex-Infra Private Limited, a subsidiary.

4. Remaining funds allocated for general corporate purposes and inorganic acquisitions.

This fund utilisation reflects a mix of debt reduction, business expansion, and strategic acquisitions, showing intent to strengthen the balance sheet and expand operations.

Allotment and Listing Timeline

The IPO allotment is expected on Monday, June 23, 2025, and investors can check their status via the registrar’s website using PAN, application number, or DP ID.

Shares of ArisInfra Solutions Limited will likely be listed on both BSE and NSE on Wednesday, June 25, 2025, subject to regulatory confirmations and procedural compliance.

Investment Outlook and Review

While ArisInfra Solutions Limited operates in a large and fragmented market with room for tech-led disruption, the IPO faces multiple headwinds:

• Loss-making status in the last three full fiscals

• High valuation multiples relative to profitability

• No GMP premium, indicating low expected listing gain

• Low subscription figures despite being a mid-sized IPO

Given these points, risk-averse investors are advised to avoid this IPO, especially for listing gains. The long-term story may be promising if the company can sustain profitability and operational leverage, but it is still early-stage in terms of financial turnaround.

Disclaimer:
This article is for informational and educational purposes only and does not constitute financial advice. The ArisInfra Solutions IPO involves market risk and should be evaluated considering your financial objectives and risk tolerance. Investment decisions must be based on independent analysis and advice from qualified professionals. Always read the Red Herring Prospectus (RHP) and all related documents carefully before investing in any IPO.

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