ArisInfra Solutions files draft papers with SEBI to raise ₹600 crore via IPO

Technology-driven construction material procurement platform ArisInfra Solutions Limited has filed draft papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise ₹600 crore via an initial public offering (IPO).

According to the draft red herring prospectus (DRHP), the proposed public offer is solely a fresh issuance of equity shares. There is no offer for sale (OFS) component involved.

The Mumbai-based firm intends to mobilise around ₹120 crore through a pre-IPO placement. If such placement occurs, the amount raised will be deducted from the total IPO size.

The proceeds from the fresh issue will be used to meet the working capital requirement, investment in a subsidiary, Buildmex-Infra, purchase of partial shareholding from existing shareholders of its subsidiary, ArisUnitern Re Solutions Pvt Ltd, loan repayment and for general corporate purposes.

About ArisInfra Solutions

ArisInfra Solutions is a business-to-business (B2B) technology-enabled company that focuses on digitising and simplifying the procurement process for construction materials.

Between April 1, 2021, and March 31, 2024, the firm delivered 10.35 million metric tonnes of construction materials, including aggregates, steel, cement, ready-mix concrete, walling solutions, and construction chemicals. It employed 1,458 vendors and served 2,133 customers across nearly 1000 pin codes in various cities.

ArisInfra reported revenue of ₹700 crore in the financial year 2023-24 and EBITDA (earnings before interest, taxes, depreciation, and amortisation) of ₹40 crore.

Nuvama, JM Financial and IIFL Securities are the book-running lead managers to the issue.