ArisInfra Builds Its Future—Laying the Foundation With a Rs 499.6 Crore IPO

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ArisInfra Solutions, a B2B procurement company for building materials, will bring forth its Rs 499.6 crore IPO on June 18 with a view to reinforcing its finances and extending operations. The issue of fresh equity will enable the company to repay debt, improve working capital, and invest in subsidiaries, representing a strategic step toward long-term sustainability.

IPO Details and Subscription Timeline

The issue will open on June 18 and close on June 20, at a price band of Rs 210–Rs 222 per share.

The issue consists of fresh equity shares only and not any offer-for-sale.

Anchor investors had already booked orders for Rs 225 crore, reflecting high-institutional interest.

Debt Repayment and Financial Strategy

Rs 204.6 crore from the IPO proceeds will be utilized to retire outstanding debt, improving profitability.

The firm has had high interest expenditure, limiting its profit potential, though debt repayment is expected to boost margins.

Net debt stood at Rs 256.2 crore, which points to the need for financial re-staging.

Growth and Market Development

Finances will also be utilized to fund working capital needs, allowing smoother operation and payment to suppliers.

ArisInfra plans to invest in its group firm, Buildmex-Infra, to expand its market presence.

The company has worked for over 2,600 customers across 1,075 pincodes, indicating the widespread reach of the firm in the construction industry.

Investor Considerations

The holding of the promoter group will fall to 38% from 58% following the IPO.

Revenue grew 24% annually but longer collection periods and client concentration are concerns.

Experts recommend tracking post-listing performance prior to making the investment choice.

Sources: Economic Times, Business Standard, Moneycontrol, MSN.