Arisinfra Solutions IPO opens today: Should you subscribe to it?

Arisinfra Solutions is set to initiate its initial public offering (IPO) on June 18, 2025, with the price band ranging from Rs 210 to Rs 222 per share. The subscription period will conclude on June 20, 2025. This IPO is a pure fresh issue, aiming to raise Rs 499.59 crore, with an expected market capitalisation of Rs 1,800 crore at the upper price band.

The company plans to allocate the IPO proceeds towards financial restructuring, including Rs 205 crore for debt repayment, Rs 177 crore for working capital, and Rs 48 crore for investment in its subsidiary, Buildmex Infra. As per the latest data from March 2025, Arisinfra's borrowings stood at Rs 336.59 crore.

Arisinfra Solutions has also secured Rs 225 crore from anchor investors by allocating 1,01,26,946 shares at Rs 222 per share to 15 funds. Among these investors are notable names like Astorne Capital VCC, Niveshaay Hedgehogs Fund, and Citigroup Global Markets.

Operating within the B2B technology-driven construction materials sector, Arisinfra focuses on digitising procurement processes for construction materials. Its extensive supply chain has supported a significant market presence with a projected market capitalisation of approximately Rs 1,800 crore.

From April 2021 to December 2024, Arisinfra supplied over 14 million metric tonnes of materials to 2,659 customers in 1,075 locations, including major cities like Mumbai, Bengaluru, and Chennai. This highlights the company's extensive vendor network sourcing various construction materials.

Financially, Arisinfra reported a decrease in revenue to Rs 696.84 crore for FY24, down from Rs 746.07 crore in FY23, with net losses rising to Rs 18.61 crore from Rs 14.21 crore the previous year. However, for the nine months ending December 2024, revenue was Rs 557.76 crore with a net profit of Rs 3.43 crore, indicating a recovery.

The basis of allotment is expected to be finalised on June 23, 2025, with refunds initiated and shares credited to demat accounts by June 24, 2025. The anticipated listing date on the BSE and NSE is June 25, 2025. JM Financial, IIFL Capital Services, and Nuvama Wealth Management are managing the issue, with MUFG Intime India (Link Intime) as the registrar. Here's what a host of brokerage firms said about the IPO of Arisinfra Solutions:

Arihant Capital Markets
Rating: Neutral
ArisInfra pursues growth by entering new micro markets in existing and untapped geographies, boosting market penetration in India’s fragmented $235–255 Bn construction materials sector. It capitalizes on the unorganized market’s inefficiencies, leveraging its technology platform, credit-linked pricing, and advanced hardware for enhanced efficiency, said Arihant Capital.

"With a robust network and scalable model, ArisInfra strengthens its position as a leading B2B solution, addressing challenges for vendors and customers alike. The issue is valued at P/E ratio of 206.7 times, based on a FY25 EPS of Rs 1.1. We are recommending a 'neutral' rating for this issue," it said.

SBI Securities
Rating: Subscribe for long-term
ArisInfra is valued at 9MFY25 annualised EV/Ebitda multiple of 35.8 times at post issue capital of upper price band. It operates a niche B2B business model, serving as a one-stop solution for raw material supplies used in infra 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, it 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. However, investors who wish to take exposure to new age platforms for construction material," it said with a 'subscribe for long-term' rating.

Bajaj Broking
Rating: Subscribe for long-term
ArisInfra Solutions is engaged in technology enabled B2B supplier for construction materials, that has a growing market. It enjoys virtual monopoly in the segment and is the most preferred partner in construction activities. It posted losses till FY24 and has just turned corner for 9M of FY25, Bajaj Broking said.

Based on latest working the issue is aggressively priced, and based on working till FY24, the P/E is negative. Well-informed/cash surplus investors may park moderate funds for the long term, others may simply stay away from this pricey bet.
 

Canara Bank Securities
Rating: Neutral
ArisInfra leverages a technology-enabled platform and an integrated vendor-customer network to deliver a scalable and differentiated procurement model. However, certain risk factors merit consideration, including its historical losses, aggressive pricing and uncertainty surrounding the sustainability of its recently reported profitability, said Canara Bank Securities.

"Its business model is capital intensive, and key financial return ratios have remained subdued. We retain 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.

BP Equities
Rating: Subscribe for long-term
Arisinfra has registered revenue growth at a CAGR of 24.1 per cent over FY22-FY24. It recently turned profitable, with losses of Rs 17.3 crore in FY24 turning into a profit of Rs 6.5 crore in 9MFY25. It is currently valued at a P/E ratio of 273 times on the upper price band, based on FY25 annualized earnings, which is relatively high.

"However, it remains well-positioned for future growth, considering that it is the only player in this emerging segment with an intention to repay debt and invest in its subsidiary. We thus recommend a 'subscribe' rating for investors with a medium to long-term investment horizon," it added.

Ventura Securities
Rating: Subscribe
ArisInfra aims to further penetrate untapped markets and diversify its offerings to improve profitability. It plans to optimize its construction materials mix, form strategic partnerships, and enhance vendor relationships to improve working capital efficiency, said Ventura. "ArisInfra intends to increase its wallet share with existing customers, strengthen its position in Southern India, and leverage its technology for smarter procurement solutions," it said with a 'subscribe' rating.
 

Kunvarji Finstock
Rating: Subscribe for long-term
"We recommend this IPO with long-term view only as the issue appears aggressively priced. The P/E stands at 207.4 with the consideration of its upper price band. It is well-positioned to capitalize on the expanding market opportunities in the construction sector, leveraging technology to transform supply chains with a strong network and led by a team of experienced professionals," said Kunvarji Finstock