ArisInfra Solutions IPO: GMP crashes sharply amid muted bidding on day 3, issue closes today

ArisInfra Solutions, a Mumbai-based technology-driven player in the construction materials market, is concluding its initial public offering (IPO) with a mixed response. The company is offering shares in the price band of Rs 210-222, with a minimum application lot size of 67 shares. The IPO, entirely a fresh share sale, aims to raise Rs 499.60 crore through the issuance of up to 2,25,04,324 equity shares.

The IPO saw a subscription of 25% on the first day, which increased to nearly 1.40 times by the end of the second day. The final day of bidding continues to attract investor attention, although with a muted response compared to initial expectations. The offering is managed by JM Financial, IIFL Capital Services, and Nuvama Wealth Management, with MUFG Intime India as the registrar.

According to the data, the investors made bids for 3,05,58,767 equity shares, or 2.34 times, compared to the 1,30,84,656 equity shares offered for the subscription by 3.00 pm on Friday, June 20, 2025. The bidding for the issue which kicked off on Wednesday, June 18, shall conclude today.

The allocation for retail investors was subscribed 5.12 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 2.76 times. However, the quota set aside for qualified institutional bidders (QIBs) was booked 1.20 times as of the same time.

Incorporated in 2021, ArisInfra Solutions is focused on digitising and simplifying the procurement process in the construction and infrastructure sectors. The company reports a net profit of Rs 6.53 crore for the nine months ending 31 December 2024, against a revenue of Rs 557.76 crore. Despite facing a net loss of Rs 17.30 crore in the financial year 2023-24, ArisInfra expects to command a market capitalisation close to Rs 1,800 crore.

Canara Bank Securities had a 'neutral' stance on the IPO. "Prospective investors with a long-term investment horizon and a higher risk appetite may evaluate limited participation, while others are advised to await greater consistency in financial performance prior to considering an investment position, it said.

The grey market premium (GMP) for ArisInfra Solutions saw a sharp fall amid muted bidding for the issue. Its GMP dropped to Re 1 per share indicating a flat listing gain. This is a decrease from the Rs 40 GMP observed when the price band was initially announced and Rs 25 on day two of bidding.

Arisinfra Solutions is valued at 9MFY25 annualised EV/Ebitda multiple of 35.8 times. It operates a niche B2B business model, serving as a one-stop solution for raw material supplies used in infrastructure and real estate development projects. The proceeds from the issue will be utilized to reduce debt, meet working capital requirements and invest in its subsidiary, said SBI Securities.

Leveraging AI-enabled technology, the company is well-positioned to capitalize on its integrated supply model, catering to major industry players. This positions it as an organized and comprehensive provider in a largely fragmented market. We expect the listing to be muted in the backdrop of expensive valuation," it added with a 'subscribe for long term' rating.

ArisInfra Solutions secured Rs 225 crore from anchor investors by allocating 1,01,26,946 shares at Rs 222 each. The IPO has reserved 75% of shares for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors.