Mumbai-based Arisinfra Solutions files DRHP with SEBI to raise Rs 600 crore via IPO

Mumbai-based Arisinfra Solutions Limited has recently filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

The company is planning to raise up to Rs 600 crore through this initial public offering (IPO).

The offering consists entirely of a fresh issue of equity shares, each with a face value of Re 2.

Utilization of IPO proceeds

The net proceeds from the IPO are earmarked for several key financial activities. The company intends to use Rs 204.60 crore to repay or prepay certain outstanding borrowings, which is expected to improve its financial stability.

Additionally, Rs 177 crore will be allocated to meet the company's working capital requirements, ensuring smoother operations and facilitating its expansion.

Arisinfra Solutions will also invest Rs 48 crore into its subsidiary, Buildmex-Infra Private Limited, to support its working capital needs.

Furthermore, Rs 20.40 crore will be used to purchase shares from existing shareholders of its subsidiary, ArisUnitern Re Solutions Private Limited. The remaining funds will be utilized for general corporate purposes and potential future acquisitions.

Investor and promoter details

Siddharth Shah, co-founder of Pharmeasy, is one of the prominent investors in Arisinfra Solutions, holding a 1.4% stake in the company, which amounts to 775,320 equity shares.

The promoter group also includes Ronak Kishor Morbia, Bhavik Jayesh Khara, Jasmine Bhaskar Shah, Priyanka Bhaskar Shah, Bhaskar Shah, and the Priyanka Shah Family Trust.

Other significant stakeholders are Aspire Family Trust, Think Investments PCC, and Zen Assets Trust, reflecting the company's strong backing from established investors.

What does Arisinfra Solutions do?

Arisinfra Solutions operates as a business-to-business (B2B) technology-enabled platform that simplifies and digitizes the procurement process for construction materials.

The company combines advanced technology with human expertise to manage the sourcing, sales, and delivery of bulk construction materials, aiming to be a one-stop solution for real estate and infrastructure developers.

Between April 1, 2021, and March 31, 2024, Arisinfra delivered 10.35 million metric tonnes of construction materials, serving a broad range of customers across 963 pin codes in various cities.

It claims to have established a strong customer base, including major developers and contractors like Capacit’e Infraprojects, J Kumar Infraprojects, and the Wadhwa Group, among others.

JM Financial, IIFL to manage IPO

The IPO will be managed by JM Financial Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited, with Link Intime India serving as the registrar for the issue.

The shares of Arisinfra Solutions are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Of the total shares offered, 75% will be reserved for qualified institutional bidders, 15% for non-institutional investors, and the remaining 10% will be allocated to retail investors.