Weak Debut! Arisinfra Solutions shares list at ₹205 on NSE, a discount of 7.66% from IPO price

Arisinfra Solutions IPO listing: Shares of Arisinfra Solutions made a muted debut on the bourses on Wednesday, June 25, listing at ₹205 on NSE, a discount of 7.66 percent from its issue price of ₹222. Meanwhile, on BSE it listed at ₹209.10, down 5.81 percent from issue price.

The IPO, valued at ₹499.60 crore, was open for subscription from June 18 to June 20.

Arisinfra Solutions' IPO ended on a decent note, with the issue subscribed 2.8 times over the three-day bidding window. Investors placed bids for 3.46 crore as against 1.23 crore shares on offer. The retail investor segment saw 5.90 times subscription, while the non-institutional investor (NII) category witnessed 3.32 times subscription. The portion reserved for qualified institutional buyers (QIBs) was also subscribed 1.50 times.

About the IPO

The IPO comprises a fresh issue of 2.25 crore equity shares with no offer for sale (OFS) component. The minimum application size was 67 shares, implying a minimum investment of ₹14,874 from retail investors.

ArisInfra Solutions Limited plans to utilise the IPO proceeds primarily to strengthen its balance sheet and support growth. Around ₹204.6 crore will go towards repayment or prepayment of select borrowings, while ₹177 crore is allocated for meeting working capital needs. Additionally, ₹48 crore will be invested in its subsidiary, Buildmex-Infra Private Limited, for its operational funding. The remaining funds will be used for general corporate purposes and potential inorganic growth opportunities.

ArisInfra Solutions appointed JM Financial Limited, IIFL Capital Services Limited, and Nuvama Wealth Management Limited as the book-running lead managers for its IPO. MUFG Intime India Private Limited (Link Intime) handled the role of registrar for the public offering.

About the Company

ArisInfra Solutions Limited, incorporated in 2021, is a technology-driven B2B platform that caters to the construction and infrastructure sector by simplifying material procurement and financial management. Positioned within the rapidly growing construction materials market, the company focuses on digitising the supply chain to offer a streamlined, end-to-end customer experience. Its product portfolio includes a wide range of essential construction materials such as GI pipes (steel), MS wire (steel), MS TMT bars (steel), OPC bulk cement, and more, aiming to make sourcing efficient and hassle-free for infrastructure businesses.

ArisInfra Solutions Limited reported a decline in its financial performance for FY24, with revenue falling by 6.9 percent to ₹702.36 crore, down from ₹754.44 crore in FY23. Additionally, the company's net loss widened to ₹17.30 crore in FY24, compared to a loss of ₹15.39 crore in the previous financial year.

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