ArisInfra Solutions IPO Day 2 Highlights: Issue booked 1.32x, retail portion booked 3x. Check GMP. Apply or not?

ArisInfra Solutions Ltd's public offering has begun for subscription as of June 18 and will conclude on June 20. This B2B technology-driven company aims to simplify and digitize the procurement process for construction materials. Although the ArisInfra Solutions IPO had a slow start, the portion designated for retail investors was fully subscribed on the very first day of bidding.

On Tuesday, the company revealed that it raised ₹225 crore from anchor investors just one day prior to the commencement of its public share sale. Shares in the anchor round have been distributed among various entities, including Astorne Capital VCC, Niveshaay Hedgehogs Fund, Citigroup Global Markets Mauritius, Rajasthan Global Securities, Sunrise Investment, Nexus Global Opportunities Fund, Zeal Global Opportunities Fund, Saint Capital Fund, and Beacon Stone Capital, among others.

The ArisInfra Solutions IPO price band has been fixed in the range of ₹210 to ₹222 per equity share with a face value of ₹2. ArisInfra Solutions IPO lot size is 67 equity shares and in multiples of 67 equity shares thereafter. At the upper end of the price band, the company's valuation approaches ₹1,800 crore.

The company stated that 75% of the overall offering has been allocated for qualified institutional buyers, while 15% is reserved for non-institutional investors, and the remaining 10% is designated for retail investors.

ArisInfra Solutions IPO Day 2 Highlights: Subscriptions Status

ArisInfra Solutions IPO subscription status is 1.32 times on day 2. The retail portion was subscribed 3.00 times, and NII portion was booked 1.39 times. Qualified Institutional Buyers (QIBs) portion received 73% bids.

The company has received bids for 1,73,03,085 shares against 1,30,84,656 shares on offer, at 17:00 IST, according to data on BSE.

ArisInfra Solutions IPO Day 2 Live: Investment Rationale of BP Wealth 

1. Technology-driven infrastructure enhances efficiency, reduces intermediary dependence and expands B2B reach
2. Expanding the network ensures long-term strategic benefits

ArisInfra Solutions IPO Day 2 Live: Check out DRChoksey FinServ Pvt Ltd views 

“Most of its listed peers domestically and globally operate in B2C format in large format stores to cater the retail consumers, which supports their higher margin profile. On comparing financial performance of the Company, with similar players catering to different consumer segment, ArisInfra’s initial offering at 48.3x annualized FY25 EV/EBITDA appears expensive to us. Accordingly, we recommend a “AVOID” rating to the issue,” said the brokerage.

ArisInfra Solutions IPO Day 2 Live: Subscription Status

ArisInfra Solutions IPO subscription status is 24% on day 2, so far. The retail portion was subscribed 1.04 times, and NII portion was booked 19%. Qualified Institutional Buyers (QIBs) portion is yet to receive bids.

The company has received bids for 31,78,815 shares against 1,30,84,656 shares on offer, at 17:00 IST, according to data on BSE.

ArisInfra Solutions IPO Day 2 Live: Review

As per Bajaj Financial Securities, the firm operates as a technology-enabled B2B supplier of construction materials and is part of a growing market. It holds a near-monopoly in its niche and is the preferred partner for construction projects. The company reported losses until FY24 but has begun to recover in the first nine months of FY25.

Considering the latest assessments, the issue is priced aggressively, and based on figures up to FY24, the price-to-earnings ratio is negative. Investors who are well-informed or have surplus cash might consider investing moderate amounts for the long term, while others should likely avoid this expensive option.

Arihant Capital Markets highlighted in their report that ArisInfra is actively seeking growth by exploring new micromarkets in both existing and untapped regions, thereby increasing its market share in India’s fragmented construction materials sector, valued between $235–255 billion.

The company takes advantage of the inefficiencies present in the unorganised market, utilising its technology platform to implement demand-supply auto-syndication, credit-linked pricing, and advanced hardware to improve efficiency. With a strong network and a scalable business model, ArisInfra enhances its role as a leading B2B solution, tackling issues faced by both vendors and customers. At the upper price band of ₹222, this issue is priced at a P/E ratio of 206.7x, based on a FY25 EPS of ₹1.1. The brokerage is suggesting a “Neutral” rating for this issue.

ArisInfra Solutions IPO Day 2 Live: ArisInfra Solutions IPO GMP today

ArisInfra Solutions IPO GMP today is +25. This indicates ArisInfra Solutions share price was trading at a premium of ₹25 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of ArisInfra Solutions share price is indicated at ₹247 apiece, which is 11.26% higher than the IPO price of ₹222.

According to the grey market activities over the last eight sessions, today's IPO GMP is trending downwards and is anticipated to decrease further. The highest GMP recorded is ₹40, while the lowest stands at ₹25.00, as reported by experts from investorgain.com.

Grey market premium' indicates investors' readiness to pay more than the issue price.

ArisInfra Solutions IPO Day 2 Live: IPO details

ArisInfra Solutions IPO involves a new issuance of equity shares valued at ₹499.6 crore, excluding any offer for sale (OFS) element.

The funds raised from this issue will be allocated to meet the company's working capital needs, invest in its subsidiary, Buildmex-Infra, to support its working capital, acquire a portion of the shareholding from current shareholders of its subsidiary, ArisUnitern Re Solutions Pvt Ltd, repay debts, and for general corporate purposes.

The lead managers for the issue are JM Financial, IIFL Capital Services, and Nuvama Wealth Management.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.