Arisinfra Solutions IPO

About Arisinfra Solutions IPO

The IPO of Arisinfra Solutions Ltd comprises a fresh issue of equity shares of face value of ₹2 each aggregating up to ₹499.596 crores. It’s a 100% book-built issue. The lot size is 67 shares and in multiples thereof and the price range is between ₹210 and ₹222.

The IPO opens on June 18, 2025 and closes on June 20, 2025. The basis of allotment is June 23, 2025. The listing date is June 25, 2025. The credit of shares to the demat account will take place on June 24, 2025. The initiation of refunds will take place on June 24, 2025.

Objectives of Arisinfra Solutions IPO

• Repayment / prepayment, in full or part, of certain outstanding borrowings availed by the company
• Funding the working capital requirements of the company
• Investment in its subsidiary, Buildmex-Infra Private Ltd (Buildmex), for funding its working capital requirements
• General corporate purposes and unidentified inorganic acquisitions

Industry Outlook

The Indian construction materials market presents a significant opportunity as it is highly unorganised and fragmented, coupled with the absence of many large, organised players, creating numerous challenges for both vendors and customers.

Typically, profit margins of approximately 15% are spread across the multiple intermediaries involved in the procurement chain, indicating USD 35-45 billion margin profit pool opportunity up for grabs in the industry. Additionally, players can tap into further margins through backward integration and forward integration by offering private labels and value-added services.

Company Information

Arisinfra Solutions Ltd is a business-to-business (B2B) technology-enabled company operating in a growing construction materials market, focusing on simplifying and digitising the entire procurement process for construction materials, delivering an efficient end-to-end procurement experience.

It utilises a blend of technology and human expertise to simplify the procurement process for purchasing bulk quantities of various construction materials. It leverages its network of vendors to source construction materials and provide them to real estate and infrastructure developers and contractors, striving to be a one-stop solution for all their construction material requirements.

Risks of Arisinfra Solutions IPO

• Revenues from RMC and Steel

Arisinfra Solutions Ltd derives a portion of its revenues from the sale of aggregates, ready-mix-concrete (RMC), and steel, which represented 37.11%, 25.29% and 6.69% and 31.19%, 21.12% and 16.73% of its revenue from operations for the nine months ended December 31, 2024 and Fiscal 2024, respectively. Any decline in the demand of these construction materials would have an adverse effect on its business, financial condition, results of operations and cash flows.

• Geographical Concentration of Revenues

The company derives a substantial portion of its revenues from the states of Maharashtra, Karnataka and Tamil Nadu, which accounted for 94.79%, 81.05%, 85.04% and 92.15% of its revenue from operations for the nine months ended December 31, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively. Consequently, any unfavourable developments in these states could adversely affect its business, results of operations, financial condition and cash flows.

• Dependence on Certain Customers

The company depends on certain key customers for a significant portion of its revenues. Its top 10 customers contributed 48.47%, 45.24%, 39.07% and 47.19% of its revenue from operations for the nine months ended December 31, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively.

It does not execute long-term agreements with its customers and its inability to procure new orders on a regular basis or at all or any decrease in revenues from any of its key customers or any loss of any of these customers or its inability to diversify its customer base could have an adverse effect on its business, results of operations, financial condition and cash flows

Peers Comparison

There are no listed companies in India or globally (outside India) that engage in a business similar to that of Arisinfra Solutions Ltd. Accordingly, it is not possible to provide an industry comparison in relation to Arisinfra Solutions Ltd.

Anchor Investor Information

June 17, 2025 is the date on which anchor investors can bid for this IPO.

IPO Registrar and Book Running Lead Managers

• IPO Registrar: MUFG Intime India Pvt Ltd
• Book Running Lead Managers: JM Financial Ltd, IIFL Capital Services Ltd and Nuvama Wealth Management Ltd

Business Model

As a B2B technology-enabled company, the business model of Arisinfra Solutions Ltd involves procuring construction materials from vendors and securing payments from customers for construction materials sold. On the supply side, the company recognises the potential in leveraging the underutilised capacities of manufacturers. This approach enables it to expand its range of third-party manufactured construction materials, benefit from local market intelligence and streamline its sourcing and supply chain processes.

Company Growth Trajectory

The revenue of operations of Arisinfra Solutions Ltd grew from ₹452.348 crores in FY 22 to ₹696.842 crores in FY 24. Its gross margin increased from 9.88% in FY 22 to 12.01% in FY 24. The company’s customers increased from 431 in FY 22 to 2133 in FY 24, while active customer count grew from 431 in FY 22 to 1278 in FY 24. Scalable operating model coupled with network effects ensuring long-term strategic benefits has helped the company grow over the years.

Market Position

Operating in a growing construction materials market, between April 1, 2021 and December 31, 2024, Arisinfra Solutions Ltd delivered 14.10 million metric tonnes (MT) of construction materials, including aggregates, ready-mix concrete (RMC), steel, cement, construction chemicals and walling solutions, utilising 1,729 vendors and serving 2,659 customers across 1,075 pin codes in various cities, including Mumbai, Bengaluru and Chennai.

Its customer base includes large real estate and infrastructure developers and contractors, including Capacit’e Infraprojects Limited, J Kumar Infraprojects Limited, Afcons Infrastructure Limited, EMS Limited, S P Singla Constructions Private Limited, Real Gem Buildtech Private Limited, Wadhwa Group Holdings Private Limited, Casa Grande Civil Engineering Private Limited, Sheth Creators Private Limited, Puranik Builders Limited, and Transcon Iconica Private Limited.

How to Apply for the Arisinfra Solutions Ltd IPO?

1. Visit the Registrar’s Website

• Visit the official website of MUFG Intime India Pvt Ltd
• Click on ‘Public Issues’ from ‘Investor Services’
• Select company name and enter either your PAN, application number, DP/client ID or account number
• Click on ‘Submit’ to know the status

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Choose the Issue Type
• Select the Issue Name from dropdown
• Put in either your application number or PAN number
• Check the box ‘I’m not a robot’
• Click on ‘Search’ to know allotment status

3. Check on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Arisinfra Solutions Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:

• Company name from dropdown
• Application number
• PAN

Then click 'Submit' to know the allotment status.