IPO closes on 20 Jun'25
Arisinfra Solutions Ltd
Minimum Investment
₹ 14,874 / 67 shares
Grey market premium
₹ 25 (11% premium)
Our Verdict:
Avoid
- Arisinfra Solutions Ltd (Arisinfra) has a history of losses and negative net worth. Despite reporting profitability for the first time in 9MFY25, its ability to sustain this positive trend remains uncertain.
- In terms of valuation, the IPO appears expensive with a P/E multiple of 207x based on FY25 annualized earnings relative to its post-IPO fully diluted paid-up equity capital.
- Although the company is making strides in operational efficiency, managing debt and maintaining profitability remain significant challenges. Additionally, external factors like market volatility and global macroeconomic uncertainties add to the investment risk.
- Given these concerns, it is advisable for investors to refrain from investing at this stage, as the inherent risks outweigh the rewards. It would be prudent to monitor the company’s performance over the next few quarters to assess its ability to sustain profitability and long-term growth before considering any investment.
About the company
Founded in
10 Feb'21
Managing director
Ronak Kishor Morbia
- Arisinfra is a technology-driven B2B company specializing in the construction materials sector. It aims to streamline and digitize the entire procurement process, offering a seamless end-to-end experience for real estate and infrastructure developers, as well as contractors.
- By leveraging a vast network of vendors, Arisinfra efficiently sources and delivers construction materials, positioning itself as a comprehensive one-stop solution for all construction material needs. From April 1, 2021, to December 31, 2024, it successfully delivered 14.10 MMT of construction materials, collaborating with 1,729 vendors and serving 2,659 customers across 1,075 pin codes.
STRENGTHS
- Profitability Turnaround: Arisinfra achieved a net profit of Rs 6.5 crore for 9MFY25, marking a significant recovery from previous losses. The company's plans to reduce debt by approximately 63% through the issue proceeds should significantly lower interest costs, boosting profitability going forward.
- Strong Market Penetration: Arisinfra has expanded its reach, increasing deliveries from 253 pin codes in FY22 to 963 in FY24. Its customer base grew from 431 to 2,133 and the vendor network expanded from 441 to 1,458 during the same period, indicating robust market penetration. Marquee clients include Capacit’e Infraprojects, J Kumar Infraprojects and Wadhwa Group.
- Expansion into Construction Materials: Arisinfra diversified into the manufacturing of construction materials through third-party manufacturers in FY23. This strategic move ensures better quality control, reduces reliance on external vendors and improves margins. Revenue from these third-party materials contributed 35%, 18%, and 2.4% to total revenue in 9MFY25, FY24, and FY23, respectively.
RISK FACTORS
- Weak Track Record: Arisinfra has reported losses of Rs 17.3 crore, Rs 15.4 crore and Rs 6.5 crore in FY24, FY23 and FY22, respectively. Having commenced operations in April 2021, the company is still in its early stages, with no certainty of achieving profitability in the coming years.
- Cash Flow Concerns: Arisinfra has faced negative cash flow from operations in 9MFY25 and FY22. Continued negative cash flows could jeopardize business continuity and financial stability.
- Geographical Concentration: Arisinfra is highly dependent on a few states for its revenue, with 95% and 81% of its operating income for 9MFY25 and FY24, respectively, coming from Maharashtra, Karnataka and Tamil Nadu. This concentration increases vulnerability to regional market fluctuations.
- Client Concentration: Arisinfra derives 48.5% and 45% of its revenue for 9MFY25 and FY24, respectively, from its top 10 customers. A loss of any key client could have a significant adverse effect on revenue stability and overall business performance.
- Legal Risks: Arisinfra and its subsidiaries are currently facing legal cases amounting to approximately Rs 50 crore. Any unfavourable outcomes in these lawsuits could negatively impact the company's reputation and business prospects.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ 499.60 crore
Fresh Issue
₹ 499.60 crore
OFS
₹ -
Price range
₹ 210 - 222
Lot size
67 shares
Issue Objective
The net proceeds from the fresh issue will be used for the following purposes:
- Repayment or prepayment of certain borrowings by the company;
- Funding the working capital requirements of the company and its subsidiary; and
- General corporate purposes, including potential inorganic acquisitions.
Dates
Bidding open
18 Jun'25
Bidding close
20 Jun'25
Allotment date
23 Jun'25
Refund date
24 Jun'25
Listing
25 Jun'25
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.