ArisInfra Solutions IPO opens for subscription today. Should you bid?

Synopsis

ArisInfra Solutions introduces its Rs 500 crore IPO today. The IPO includes a fresh offer and closes on June 20. The price is Rs 210–222 per share. The company will list on BSE and NSE. Proceeds will repay debt, meet working capital needs, and invest in BuildMEX Infra. SBICAP notes aggressive pricing, while Bajaj Broking highlights growth potential.

ArisInfra Solutions, a tech-driven B2B platform for bulk construction materials, will launch its Rs 500 crore IPO today. The issue is entirely a fresh offer and will close on June 20. The price band is fixed at Rs 210–222 per share.

Investors can bid in lots of 67 shares, with a minimum investment of Rs 14,874 at the upper end. The company will be listed on both BSE and NSE.

Arisinfra Solutions IPO GMP

Ahead of the issue opening, the company's shares were trading with a GMP of Rs 25, indicating a premium of 11% over the issue price.

Company overview and financials

Founded in 2021, ArisInfra enables real-time, end-to-end procurement for materials like cement, steel, RMC, and flyash.

It operates across 20 cities with 1,700 vendors and a customer base exceeding 2,600, including names like L&T, Afcons, and Ashoka Buildcon. Over 14 million metric tonnes of material have been delivered through its platform till December 2024.

Proceeds from the IPO will be used to repay debt (Rs 204.6 crore), meet working capital needs (Rs 177 crore), and invest in its subsidiary BuildMEX Infra (Rs 48 crore).

As per filings, the company posted revenue of Rs 1,203 crore in 9MFY25, with a net profit of Rs 6.53 crore, after losses in FY23 and FY22.

Should You Subscribe?

SBICAP notes the issue is aggressively priced at an EV/EBITDA of 35.8x (FY24) and sees limited listing gains. But it believes the company’s full-stack tech model and focus on digitizing construction procurement hold long-term potential.

Bajaj Broking highlights the company’s asset-light model, marquee client base, and the Rs 12.7 lakh crore infra market opportunity. It expects healthy growth driven by government infra push and sees scope for both listing pop and long-term upside.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

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