Mumbai-based Arisinfra Solutions Limited recently filed its draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
The company plans to raise up to Rs 600 crore through this initial public offering (IPO).
The offering consists entirely of a new issue of equity shares, each with a nominal value of Re 2.
Using IPO Proceeds
The net proceeds from the IPO will be used for various 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 working capital needs of the company, ensuring smoother operations and facilitating its expansion.
Arisinfra Solutions will also invest Rs 48 crore in its subsidiary, Buildmex-Infra Private Limited, to support its working capital needs.
In addition, Rs 20.40 crore will be used to purchase shares from the existing shareholders of its subsidiary, ArisUnitern Re Solutions Private Limited. The remaining funds will be used for general corporate purposes and possible future acquisitions.
Investor and promoter data
Siddharth Shah, co-founder of Pharmeasy, is one of the prominent investors in Arisinfra Solutions, with a 1.4% stake in the company, equivalent 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 Priyanka Shah Family Trust.
Other major shareholders include Aspire Family Trust, Think Investments PCC and Zen Assets Trust, reflecting the strong backing the company receives from established investors.
What does Arisinfra Solutions do?
Arisinfra Solutions operates as a business-to-business (B2B) technology platform that simplifies and digitalizes the construction materials procurement process.
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 tons of construction materials, serving a wide range of customers in 963 postal codes across several cities.
It claims to have established a strong client base including leading developers and contractors such as Capacit’e Infraprojects, J Kumar Infraprojects and Wadhwa Group, among others.
JM Financial and IIFL to manage the IPO
The IPO will be managed by JM Financial Limited, IIFL Securities Limited and Nuvama Wealth Management Limited, and Link Intime India will act as the registrar to the issue.
Arisinfra Solutions shares 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.
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