Upcoming IPO: Construction material supplier ArisInfra Solutions gets SEBI nod for ₹600-crore public issue

ArisInfra Solutions IPO: ArisInfra Solutions Limited received the green signal from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). The company submitted its draft red herring prospectus (DRHP) to the market regulator on August 14, 2024. 

ArisInfra Solutions Limited is a business-to-business (B2B) firm which uses technology to simplify and digitise the procurement process for construction materials. The company sources materials from a network of vendors and supplies them to real estate and infrastructure developers and contractors.

The company supplies materials such as Steel GI pipes, MS wire, MS TMT Bars, soil, sand, OPC, and wall putty. According to its website, ArisInfra Solutions has supplied 1.5 lakh mts of Bauxite to Kalaburagi in Karnataka, 10 mts of MS TMT Bars 8mm Straight, and 500 cubic metres of 10mm aggregate to the Konkan Division.

ArisInfra Solutions IPO Details

ArisInfra Solutions Limited aims to raise ₹600 crore through the public issue, offering a fresh issue for a face value of ₹2 per share. 

The company aims to use the proceeds raised from the public issue to repay or partially repay certain outstanding borrowings, estimated at ₹204.60 crore. ArisInfra plans to use ₹177 crore to fund its working capital needs.

The company is also looking to invest ₹48 crore in its subsidiary, Buildmex-Infra Private Limited, to support the firm's working capital requirements. ArisInfra is also looking to purchase shares from the existing shareholders of its subsidiary, ArisUnitern Re Solutions Private Limited, for ₹20.40 crore and use the remaining funds for general corporate purposes and potential unidentified inorganic acquisitions. 

JM Financial Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited are the book runners for the public issue, while LinkIntime is the registrar of the offer. 

Mint reported earlier that popular investors like Siddharth Shah, co-founder of Pharmeasy holds a 1.4 per cent stake in the company.

The promoter group of the company comprises Siddharth Shah, Ronak Kishor Morbia, Bhavik Jayesh Khara, Jasmine Bhaskar Shah, Priyanka Bhaskar Shah, Bhaskar Shah, and the Priyanka Shah Family Trust. Other key stakeholders include Aspire Family Trust, Think Investments PCC and Zen Assets Trust.