ArisInfra Solutions Ltd, a technology-driven B2B platform specializing in construction materials procurement, is set to launch its Arisinfra Solutions Ltd IPO to raise ₹600 crore.
IPO Details:
- Issue Period: The IPO will open on February 3, 2025, and close on February 5, 2025.
- Issue Size: The total issue size is ₹600 crore, comprising entirely of fresh equity shares.
- Price Band: The price band is set between ₹200 and ₹210 per equity share.
- Lot Size: Investors can bid for a minimum of 70 shares, amounting to ₹14,700 at the upper price band.
- Listing: The shares are proposed to be listed on both BSE and NSE, with the listing date expected on February 10, 2025.
Company Overview:
Founded in 2021, ArisInfra Solutions leverages artificial intelligence and machine learning to streamline the procurement of construction materials, connecting property developers with vendors and digitizing the supply chain.
As of March 31, 2024, the company has served 2,133 customers and partnered with 1,458 vendors, delivering over 10.35 million metric tonnes of construction materials, including aggregates, ready-mix concrete, steel, cement, construction chemicals, and walling solutions.
Financial Performance:
- Revenue: In the fiscal year 2023-24 (FY24), ArisInfra reported a revenue of ₹696.84 crore, a decrease from ₹746.07 crore in the previous fiscal year.
- Net Loss: The company recorded a net loss of ₹17.33 crore in FY24, compared to a loss of ₹15.48 crore in FY23.
- EBITDA: Despite the net loss, ArisInfra achieved an EBITDA of ₹13.01 crore in FY24, indicating operational profitability.
Utilization of IPO Proceeds:
The funds raised through the IPO will be utilized for:
- Debt Repayment: Approximately ₹204.6 crore will be allocated to repay existing debt.
- Working Capital: Around ₹177 crore will be used for working capital requirements, with an additional ₹48 crore allocated to its subsidiary, Buildmex-Infra.
- Acquisitions: ₹20.4 crore is earmarked for purchasing partial shareholding from existing shareholders of its subsidiary, ArisUnitern Re Solutions.
Promoters and Shareholding:
The company’s promoters include founders Ronak Morbia and Bhavik Khara, along with notable investors such as PharmEasy CEO Siddharth Shah and family trusts.
IPO Application Process:
Investors can apply for the ArisInfra Solutions IPO through various brokerage platforms. For instance, Zerodha customers can apply online using UPI as a payment gateway by logging into the Zerodha Console and submitting an IPO application form.
Key Dates:
- IPO Open Date: February 3, 2025
- IPO Close Date: February 5, 2025
- Allotment Date: February 6, 2025
- Listing Date: February 10, 2025
Potential investors are advised to review the company’s financials, prospectus, and consult with financial advisors before making investment decisions.
ArisInfra Solutions Ltd IPO Review
The review of ArisInfra Solutions Ltd IPO depends on various factors, including the company’s financials, growth potential, industry outlook, and IPO valuation. Here’s an analysis to help you assess the offering:
ArisInfra Solutions Ltd IPO Strengths:
(1) Niche Market Presence:
- ArisInfra Solutions specializes in construction material procurement, a growing sector due to the infrastructure boom in India.
- It leverages AI and ML to streamline supply chains, offering a competitive edge.
(2) Operational Efficiency:
- Despite net losses, the company achieved operational profitability with an EBITDA of ₹13.01 crore in FY24, indicating robust cost management.
(3) Strong Vendor and Customer Network:
- Serving over 2,133 customers and partnering with 1,458 vendors, the company has established a reliable ecosystem in the construction sector.
(4) Growth Prospects:
- The Indian government’s focus on infrastructure development creates significant opportunities for companies like ArisInfra.
ArisInfra Solutions Ltd IPO Risks:
(1) Economic Slowdown:
- Any slowdown in the construction and infrastructure sectors can directly impact the company’s revenue.
(2) Execution Risk:
- Achieving profitability while scaling the business may pose significant challenges.
(3) Market Sentiment:
- Market conditions and investor sentiment toward IPOs could affect the subscription levels.
Challenges:
(1) Consistent Losses:
- The company has reported net losses in the past two fiscal years (₹17.33 crore in FY24 and ₹15.48 crore in FY23), raising concerns about profitability.
(2) Revenue Decline:
- FY24 revenue declined to ₹696.84 crore from ₹746.07 crore in FY23, indicating potential challenges in scaling or maintaining business momentum.
(3) Valuation Concerns:
- The price band of ₹200–₹210 per share might be considered aggressive, especially given the company’s financial performance.
(4) Industry Competition:
- The construction materials space is competitive, with other players offering similar services, potentially pressuring margins.
Opportunities:
(1) Utilization of IPO Funds:
- The IPO proceeds will be used for debt repayment, working capital, and strategic acquisitions, which could strengthen the company’s financial position and growth potential.
(2) Digitization Trend:
- With increasing adoption of digital platforms in procurement, ArisInfra’s tech-driven model aligns with future trends.
(3) Infrastructure Development:
- The government’s ambitious projects, like Smart Cities and highways, will likely drive demand for construction materials.
IPO Subscription Strategy:
(1) Long-Term Investors:
- If you believe in the growth story of India’s infrastructure sector and ArisInfra’s potential to capitalize on it, this IPO could be worth considering.
(2) Short-Term Investors:
- Evaluate listing gains based on demand during the subscription period and grey market premium (GMP) trends.
ArisInfra Solutions Ltd IPO GMP
As of January 20, 2025, the Grey Market Premium (GMP) for Arisinfra Solutions Ltd’s Initial Public Offering (IPO) is ₹40 per share.
This indicates that shares are trading at a premium in the unofficial market, suggesting a potential listing price of approximately ₹250 per share, given the upper price band of ₹210.
The GMP reflects investor sentiment and demand in the grey market but is not an official or guaranteed indicator of the actual listing performance. Investors should consider the company’s fundamentals, financial health, and overall market conditions before making investment decisions.
ArisInfra Solutions Ltd IPO Share Price
ArisInfra Solutions Ltd’s IPO price band is set between ₹200 and ₹210 per share. The price range allows potential investors to decide on the amount they wish to invest, with the final price determined once the subscription period concludes and allotments are made.
- Price Band: ₹200–₹210 per share
- Lot Size: The minimum lot size is 70 shares, amounting to ₹14,700 at the upper price band.
The IPO is set to open on February 3, 2025, and close on February 5, 2025. The final listing price will depend on the demand during the subscription period and the company’s performance.
ArisInfra Solutions Ltd IPO Subscription Status
As of January 20, 2025, the ArisInfra Solutions Ltd IPO is scheduled to open for subscription from February 3, 2025, to February 5, 2025.
Key Dates:
- IPO Close Date: February 5, 2025
- Basis of Allotment: February 6, 2025
- Refunds: February 7, 2025
- Credit to Demat Account: February 7, 2025
- IPO Listing Date: February 10, 2025
The IPO’s price band is set between ₹200 and ₹210 per share, with a minimum lot size of 70 shares, totaling ₹14,700 at the upper price band.
The allotment status is expected to be finalized on February 6, 2025.
Investors can check their allotment status on the registrar’s website, Link Intime India Private Limited, by entering their PAN number or application ID.
Please note that the IPO subscription status will be available only after the subscription period concludes.
ArisInfra Solutions Ltd IPO Returns
Since ArisInfra Solutions Ltd is yet to be listed on the stock exchanges, we can’t provide actual returns from its stock. However, I can provide a hypothetical returns table based on the IPO price range of ₹200–₹210 and potential future market performance.
Hypothetical Returns Table for ArisInfra Solutions Ltd (Post-IPO)
| IPO Price Range | Listing Price (Hypothetical) | Gains / Losses | % Returns | Investment in 1 Lot (70 Shares) |
| ₹200 | ₹240 | ₹40 | +20% | ₹14,700 → ₹16,800 |
| ₹210 | ₹250 | ₹40 | +19% | ₹14,700 → ₹17,500 |
| ₹200 | ₹190 | -₹10 | -5% | ₹14,700 → ₹13,300 |
| ₹210 | ₹180 | -₹30 | -14.3% | ₹14,700 → ₹12,600 |
| ₹200 | ₹220 | ₹20 | +10% | ₹14,700 → ₹15,400 |
| ₹210 | ₹230 | ₹20 | +9.5% | ₹14,700 → ₹16,100 |
Explanation:
- IPO Price Range: The price at which the shares are offered during the IPO (₹200–₹210).
- Listing Price (Hypothetical): The estimated or actual price at which the shares open when listed on the stock exchange.
- Gains / Losses: The difference between the IPO price and the listing price.
- % Returns: The percentage change in the share price from the IPO price to the listing price.
- Investment in 1 Lot (70 Shares): The total cost of one lot (70 shares) at the IPO price and the value at the listing price.
Notes:
- This table is hypothetical and assumes different listing prices.
- Actual returns will depend on market conditions, investor sentiment, and the company’s post-IPO performance.
- The stock price may fluctuate significantly based on market dynamics and financial results after listing.
Once the IPO closes and the shares are allotted, the actual returns can be calculated based on the listing price. Keep in mind that stock prices can go up or down, and the value of investments can fluctuate.
ArisInfra Solutions Ltd Growth
To estimate the potential growth of ArisInfra Solutions Ltd, we can project future growth based on key metrics such as revenue, profitability, and market trends in the construction sector. However, as the company is in the pre-IPO phase and hasn’t fully established itself in the market yet, these growth estimates are hypothetical and based on assumptions.
Here’s a hypothetical growth table showing projected growth over the next 3–5 years, assuming ArisInfra successfully scales its operations, optimizes its technology, and benefits from the growing infrastructure demand in India.
Hypothetical Growth Table for ArisInfra Solutions Ltd
| Year | Revenue (₹ Crore) | Net Profit (₹ Crore) | EBITDA (₹ Crore) | EPS (₹) | Projected Growth (%) |
| FY24 | 696.84 | -17.33 | 13.01 | -1.65 | N/A |
| FY25 | 850.00 | 5.00 | 40.00 | 0.50 | 22% (Revenue) |
| FY26 | 1,100.00 | 30.00 | 70.00 | 2.50 | 29% (Revenue) |
| FY27 | 1,400.00 | 50.00 | 100.00 | 5.00 | 27% (Revenue) |
| FY28 | 1,800.00 | 80.00 | 120.00 | 8.00 | 29% (Revenue) |
Key Assumptions:
- Revenue Growth: Assuming that ArisInfra expands its customer base and captures a larger share of the growing Indian construction sector, we estimate 22%–29% annual growth in revenue over the next 4 years.
- Profitability: With cost optimization and increased economies of scale, we estimate that the company could turn profitable by FY25, posting a net profit of ₹5 crore and scaling that to ₹50 crore by FY27.
- EBITDA: Positive EBITDA in FY24 suggests operational efficiency, and we project a substantial increase in EBITDA as the company expands and scales its operations.
- Earnings Per Share (EPS): As ArisInfra moves towards profitability, we estimate positive EPS starting in FY25, growing steadily as revenue and profit margins improve.
- Growth %: The projected growth percentages reflect the revenue and profit expansions each year, assuming the company capitalizes on the increasing demand for construction materials and its technological innovations.
Drivers of Growth:
- Indian Infrastructure Development: Government initiatives like Smart Cities, housing schemes, and National Highways can significantly increase demand for construction materials.
- Technology Implementation: ArisInfra’s use of AI and ML to optimize procurement and supply chain management could give it a competitive edge and improve margins.
- Vendor and Customer Network: Expanding its network of over 2,130 customers and 1,450 vendors can drive growth and profitability.
Conclusion:
While the above growth projections are speculative and dependent on various factors such as market conditions, competition, and operational execution, ArisInfra Solutions Ltd could experience significant growth in the coming years if it can successfully leverage its technology and capitalize on the expanding infrastructure market in India. As always, investors should carefully evaluate the risks and conduct due diligence before making investment decisions.IPO Proceeds: Funds raised from the IPO will be utilized to reduce debt, which will strengthen its balance sheet and provide more resources for expansion.
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