ArisInfra Solutions gets SEBI's go ahead for Rs 600 crore IPO

ArisInfra Solutions Ltd, a Mumbai-based supplier of construction materials, has received the Securities and Exchange Board of India's (SEBI) green light to raise Rs 600 crore through an initial public offering (IPO).

The approval, which was granted on November 13, allows the company to move forward with its plan, detailed in the draft red herring prospectus submitted in August, to issue entirely new equity shares, with no offer-for-sale component.

IPO details and fund allocation

The IPO is set to generate funds aimed at several critical objectives. ArisInfra plans to allocate Rs 225 crore for working capital, Rs 204.6 crore toward debt repayment, and the remainder for general corporate purposes and inorganic acquisitions.

The firm may also undertake a pre-IPO placement worth Rs 115.92 crore, which would reduce the fresh issue size proportionally.

Business model and market presence

ArisInfra operates in the business-to-business (B2B) construction materials market, leveraging technology to simplify procurement processes for real estate and infrastructure developers.

From April 2021 to March 2024, the company delivered over 10.35 million tonnes of materials, including aggregates, ready-mix concrete, steel, and cement.

With 1,458 vendors and 2,133 customers, the firm has established its footprint across 963 pin codes nationwide.

Stakeholders and management

Promoters currently hold 55.97% of ArisInfra's shares, with the remaining 44.03% under public ownership.

The IPO, managed by JM Financial, IIFL Securities, and Nuvama Wealth Management, aligns with the company's growth strategy and commitment to enhancing operational efficiency.