Company Overview
Incorporation and Business Model
Founded in 2021, Arisinfra Solutions operates as a technology-driven B2B company within the construction materials market. The firm specializes in digitizing procurement processes, having delivered over 10 million metric tonnes of materials such as aggregates, ready-mix concrete, and steel to a wide customer base across India.
IPO Details
- Opening Date: March 20, 2025
- Closing Date: March 25, 2025
- Issue Size: Approximately ₹600 crore
- Type of Issue: Entirely a fresh issue of equity shares, with no offer for sale (OFS).
- Face Value: ₹2 per equity share
Financial Performance
Revenue and Profitability Trends
- Revenue Decline: The company reported a decrease in total revenue from ₹7,544.39 million in March 2023 to ₹7,023.56 million in March 2024, indicating challenges in maintaining sales volume amid rising expenses.
- Profit After Tax (PAT): The PAT worsened from a loss of ₹153.92 million in March 2023 to ₹172.98 million in March 2024, reflecting ongoing financial pressures.
- Earnings Per Share (EPS): EPS has declined from ₹4.08 to ₹5.30 over the same period, raising concerns about profitability for potential investors.
- Operational Efficiency: Despite asset growth (total assets increased from ₹3,949.49 million to ₹4,928.27 million), the return on net worth (RoNW) showed slight improvement from -13.54% to -13.14%, suggesting marginal gains in operational efficiency.
IPO Objectives
The IPO aims to raise funds through a fresh issue of approximately 28.57 million shares, with proceeds allocated as follows:
- Repayment of Borrowings: ₹2,046 million for reducing debt.
- Working Capital Needs: ₹1,770 million to support daily operations.
- Investment in Subsidiary: ₹480 million for Buildmex-Infra Private Limited.
- Purchase of Shares: ₹204 million for acquiring shares from ArisUnitern Re Solutions Private Limited.
- General Corporate Purposes: Remaining funds will be used for unspecified general business needs.
Strengths and Risks
Strengths:
- The company utilizes AI-driven procurement strategies that enhance efficiency and reduce costs.
- Rapid expansion has increased its operational footprint significantly, with a growing customer base and delivery capabilities across numerous pin codes34.
Risks:
- Heavy reliance on a limited number of clients and geographic regions exposes the company to economic downturns.
- High debt levels raise liquidity risks, with a net debt-to-equity ratio improving but still concerning at 1.45
