Arisinfra Solutions Ltd: Company overview
Arisinfra Solutions Ltd is a B2B technology platform that simplifies the procurement process for construction materials. The company provides an end-to-end digital solution for infrastructure developers, offering products such as steel, cement, ready-mix concrete, and construction chemicals. Founded in 2021, Arisinfra has quickly scaled its operations, serving 2,133 customers across 963 pin codes with the support of 1,458 vendors.
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History and growth of Arisinfra solutions
Since its inception, Arisinfra has focused on streamlining supply chains in the construction sector. Between April 1, 2021, and March 31, 2024, it delivered 10.35 million metric tonnes of construction materials. Its client list includes major players like Capacit’e Infraprojects Limited, J Kumar Infraprojects Limited, and Afcons Infrastructure Limited.
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Why is Arisinfra Solutions going for an IPO?
Arisinfra Solutions Ltd is looking to raise ₹ 600 crore through this IPO to:
- Repay/prepay certain outstanding borrowings.
- Fund its working capital requirements.
- Invest in its subsidiary, Buildmex Infra Private Limited.
- Purchase partial shareholding from ArisUnitern Re Solutions Pvt Ltd.
- Support general corporate purposes and potential acquisitions.
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Arisinfra Solutions IPO details
| IPO Details | Information |
| IPO Open Date | Feb 3, 2025 |
| IPO Close Date | Feb 5, 2025 |
| Listing Date | Feb 10, 2025 (Tentative) |
| Issue Type | Book Built Issue |
| Issue Size | ₹ 600 Cr |
| Price Band | ₹ 200 – ₹ 210 per share |
| Lot Size | 70 shares |
| Face Value | ₹ 2 per share |
| Market Capitalization | ₹ 1,571.17 Cr |
| Stock Exchange Listing | BSE, NSE |
Shareholding pattern before and after IPO
| Shareholder Type | Pre-Issue Shares | Post-Issue Shares |
| Promoters | Majority | Reduced |
| QIBs | Not less than 75% | Increased |
| Retail Investors | Not more than 10% | Increased |
| NII (HNI) | Not more than 15% | Increased |
Financial performance of Arisinfra Solutions Ltd
| Financial Year | Revenue (₹ Cr) | Profit After Tax (₹ Cr) | Net Worth (₹ Cr) | Borrowings (₹ Cr) |
| FY 2024 | 702.36 | -17.3 | 141.6 | 273.98 |
| FY 2023 | 754.44 | -15.39 | 104.94 | 220.35 |
| FY 2022 | 453.77 | -6.49 | 140.3 | 154.25 |
Should you invest in Arisinfra Solutions IPO?
Advantages:
- Growing market opportunity: The construction industry is expanding, and Arisinfra is well-positioned to benefit from increasing infrastructure investments.
- Technology-driven supply chain: Their digital-first approach makes procurement efficient, giving them a competitive edge.
- Strong client base: Partnerships with leading infrastructure firms add credibility to their business model.
- IPO proceeds to reduce debt: A healthier balance sheet post-IPO could enhance future profitability.
Risks to watch out for
- Consistent losses: The company reported net losses for three consecutive years.
- High debt-equity ratio: With a 1.45 debt/equity ratio, financial risks remain.
- Competitive market: The construction material industry is highly competitive with both traditional suppliers and tech-driven startups.
- IPO pricing concerns: The high P/E ratio (c) raises valuation concerns.
Bottom line
Arisinfra Solutions Ltd’s IPO presents an opportunity for investors looking to bet on a growing B2B platform in the construction sector. However, its financial performance and market competition pose risks.
If you believe in the company’s growth potential and its ability to turn profitable, this IPO might be worth considering. Otherwise, waiting for its financials to stabilize post-listing could be a prudent approach.
