ArisInfra Solutions IPO is an attractive investment opportunity in India’s growing construction procurement sector. It is a technology-driven company that makes material sourcing easy and affordable for developers and infrastructure firms. This IPO allows investors to benefit from the potential growth in this sector. ArisInfra Solutions IPO analysis provides you with the company’s prospects, financials, and key investment considerations.
Table of Contents
#1 ArisInfra Solutions IPO Analysis: Business Overview
ArisInfra Solutions is a B2B tech-enabled company that digitally enables the procurement of construction materials. It simplifies the end-to-end procurement process for real estate and infrastructure developers.
✅ It provides an end-to-end procurement platform to real estate and infrastructure developers.
✅ In the last three fiscal years, it supplied 10.35 million metric tons of building materials across Mumbai, Bengaluru, and Chennai.
✅ ArisInfra is working with 1,458 vendors and serving 2,133 customers.
✅ As of 30 June 2024, it had 224 permanent employees.
ArisInfra’s digital-first model provides a centralized supply chain platform, allowing for better price discovery, and transparency, and minimizing project delays. The company also offers financial assistance to buyers, improving cash flow in construction projects.
#2 ArisInfra Solutions IPO Analysis: Industry and Market Outlook
The construction material industry in India is still unorganized, with a highly fragmented supplier base. Digital transformation in this sector provides companies like ArisInfra with a competitive advantage.
- Government initiatives such as Bharatmala Pariyojana and Pradhan Mantri Awas Yojana (PMAY) will boost demand in the construction sector.
- India’s construction sector contributes 9% of the GDP and is expected to grow at a CAGR of 10% over the next 5 years.
- The demand for digitalization is growing rapidly due to smart cities, green buildings, and automated construction processes.
ArisInfra can become one of the companies at the forefront of this change due to its technological solutions.
#3 ArisInfra Solutions IPO Analysis: IPO Details and Structure
📌 Fresh Issue: INR 600 crore
📌 Face Value: INR 2 per share
📌 Listing: BSE and NSE
📌 Lot size: To be decided later
The IPO proceeds will be entirely used for the expansion of the company and working capital. Offer for Sale (OFS) is not included. Share Allocation:
✅ QIBs (Institutional Investors): 75%
✅ NIIs (Non-Institutional Investors): 15%
✅ Retail Investors: 10%
#4 ArisInfra Solutions IPO Review: Financial Performance
| FY 2022 | FY 2023 | FY 2024 | |
| Revenue | 452.35 | 746.07 | 696.84 |
| Expenses | 459.21 | 772.68 | 719.20 |
| Net income | (6.49) | (15.39) | (17.30) |
| Margin (%) | (1.43) | (2.06) | (2.48) |
| EBITDA (%) | (0.24) | (0.01) | 1.87 |
| RONW (%) | (4.42) | (13.54) | (13.14) |
| Debt/Equity | 0.94 | 1.75 | 1.45 |
The company reported a record revenue growth between FY22 to FY 24 with an exceptional CAGR of 24.23%. However, net losses nullify this growth and margins declined to 2.48% in FY24 from 1.43% in FY22. However, Margins have also improved due to increased operational efficiency.
#5 ArisInfra Solutions IPO Objectives
The company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:
- Repayment/prepayment, in full or part, of certain outstanding borrowings availed by the company – INR 204.6 crore
- Funding the working capital requirements of the company – INR 177 crore
- Investment in its Subsidiary, Buildmex-Infra Private Limited, for funding its working capital requirements – INR 48 crore
- Purchase of partial shareholding from existing shareholders of its Subsidiary, ArisUnitern Re Solutions Private Limited – INR 20.4 crore
- General corporate purposes and unidentified inorganic acquisitions
#6 Strategic Partnerships and Alliances
The company has built partnerships with major real estate developers and government contractors. These collaborations help streamline bulk procurement and ensure stable revenue streams. Strategic tie-ups with logistics providers, warehouse operators, and financial institutions further reinforce the company’s operational strength, allowing seamless execution of large-scale orders.
#7 Order Book and Upcoming Projects
The company is involved in multiple large-scale procurement contracts, supporting high-rise residential developments, metro rail projects, and government infrastructure works across major urban centers. Expansion into tier-2 and tier-3 cities is also in the pipeline. As of 31 March 2024, ArisInfra reported an order book exceeding INR 1,200 crore, indicating strong revenue visibility for the coming years.
#8 Market Opportunity and Key Customers
ArisInfra Solutions is growing its operations at a lower cost using a scalable and tech-driven model. Its biggest strength is the efficiency of its systems, which allows it to easily expand into new markets and quickly add vendors and customers. India’s infrastructure B2B market, which was USD 100-110 billion in 2023, is expected to grow at a compound annual growth rate (CAGR) of 10-12% to reach USD 170-195 billion by 2028.
ArisInfra has expanded its services from 253 pin codes to 963 pin codes in the last three years, leading to a rapid growth in the number of registered vendors and customers. Through its digital approach, the company is simplifying procurement, saving time and improving operational efficiency, taking full advantage of the growing trend of technology adoption in the construction industry. ArisInfra’s key clients include top real estate developers, infrastructure firms and metro rail contractors, ensuring steady demand.
#9 ArisInfra Solutions IPO Analysis: Key Strengths
✅ Scalable Digital Platform: Tech-driven supply chain solutions
✅ Diverse Clientele: Serves real estate developers, infrastructure firms, and contractors
✅ Cost Efficiency: Cost reduction by eliminating intermediaries
✅ High Growth Potential: Positioned well in a fragmented, underpenetrated market
✅ Robust Data Analytics: AI-driven insights to optimize procurement
#10 ArisInfra Solutions IPO Review: Potential Risks
- Economic Slowdowns: Reduced infrastructure activity may impact growth
- Regulatory Risks: Changes in material procurement laws could affect operations
- Competition: Facing established and emerging digital procurement players
- Supply Chain Disruptions: Logistics or vendor issues could cause project delays
Conclusion: Should I invest?
ArisInfra Solutions IPO is a high-growth potential opportunity that can benefit from digitalization and rising demand in the construction sector.
✔ Strong financial performance
✔ Technological edge
✔ Good market position
However, investors should make a decision keeping in mind the risks of economic fluctuations and competition. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.