Arisinfra Solutions IPO Launch: Key Details, Financials, and Growth Prospects
Arisinfra Solutions, a leading B2B technology-driven company in the construction materials market, is set to launch its ₹499.6 crore IPO on June 18. The company aims to raise funds to expand its operations and digitize the procurement process.
Real Estate News:Arisinfra Solutions, a B2B technology-driven company operating in the construction materials market, will launch its ₹499.6 crore initial public offering (IPO) on June 18. The IPO will remain open for subscription till June 20. The IPO is a completely fresh issue of 2.25 crore shares.
Incorporated in 2021, Arisinfra Solutions focused on simplifying and digitizing the entire procurement process for construction materials and providing a smooth and efficient end-to-end experience for its clients. The company uses technology and expert support to streamline the purchase, sale, and delivery of construction materials.
Between April 1, 2021, and December 31, 2024, the company delivered 14.10 million MT of construction materials such as aggregates, ready-mix concrete (RMC), steel, cement, construction chemicals, and walling solutions.
### Arisinfra Solutions IPO Details
Arisinfra Solutions IPO aims to raise ₹499.6 crore through its public issue. The IPO is a fresh issue of over 2.25 crore shares with no offer for sale component. The company has fixed the price band of the issue at ₹210 to ₹222 per share. The lot size, or the minimum bid quantity to apply for the issue, is 67 shares. This equates to a minimum investment amount of ₹14,874 per lot at the upper end of the price band for retail investors.
Arisinfra Solutions has appointed JM Financial Limited, IIFL Capital Services Limited, and Nuvama Wealth Management Limited as book-running lead managers of the IPO, while MUFG Intime India (Link Intime) is the registrar for the issue.
### Arisinfra Solutions IPO: Important Dates
Arisinfra Solutions IPO will remain open for bidding from June 18 to June 20. After the bidding is closed, the allotment of shares is expected to be finalised on Monday, June 23. Successful bidders can expect the shares to be credited to their demat accounts by June 24, with others receiving refunds on the same day. Arisinfra Solutions shares are scheduled to list on the BSE and NSE on June 25.
### Arisinfra Solutions IPO Objective
The money raised from the IPO will be used towards the following objectives:
- **Repayment/prepayment of borrowings:** The company will use ₹204.60 crore to repay/prepay certain outstanding borrowings. - **Investment in subsidiary:** The company will invest ₹48 crore in its subsidiary, Buildmex-Infra Private Limited, for funding its working capital requirements. - **Working capital requirement:** Arisinfra Solutions will use ₹177 crore to fund its working capital requirements. - **General corporate purposes:** Part of the IPO proceeds will be used for general corporate purposes, which shall not exceed 25% of the total issue size.
Arisinfra recorded strong growth, with revenue from operations increasing from ₹452.35 crore in FY22 to ₹696.84 crore in FY24 and ₹546.52 crore in 9MFY25. This growth was supported by a rising customer base, which expanded 5.17 times from FY22 to December 2024.
### About the Company
Since its inception, Arisinfra Solutions has seen strong growth in its network. The number of registered customers increased from 431 to 2,133 in the last three fiscal years, while the vendor base grew from 441 to 1,458 during the same period. As of December 31, 2024, Arisinfra had 2,659 registered customers and 1,729 vendors. Active customer count is 1,080, while repeat customers stood at 848, representing a retention rate of 78.52%.
The company's customer base includes real estate and infrastructure developers and contractors like Capacit’e Infraprojects Limited, J Kumar Infraprojects Limited, Afcons Infrastructure Limited, EMS Limited, SP Singla Constructions Private Limited, and others. Meanwhile, Guardian Casting Private Limited, G S Ispat, Swarajya – Stones LLP, Sun-x Concrete India Private Limited, and Bigbloc Building Elements Private Limited have been key vendors. Consistent growth in customer and vendor base has increased the number of daily dispatches from 282 in FY22 to 613 as of December 31, 2024.
The company leverages underutilized manufacturing capacities to expand its third-party material offerings, improve supply efficiency, and fulfill bulk orders. This approach enhances brand visibility, control over the value chain, and financial performance.
The infrastructure and real estate construction segment accounts for 50%–55% of India’s industrial B2B market, valued at $275–295 billion in 2024. Despite its scale, digital adoption remains low at just 2%–3%, making it one of the most underpenetrated sectors in India. The infrastructure construction B2B market is expected to grow from $105–115 billion in 2024 to $175–200 billion by 2029 at a CAGR of 10%–12%, while the real estate B2B market is projected to grow from $170–180 billion in 2023 to $235–255 billion by 2029 at a CAGR of 6%–8%. This presents a significant opportunity for technology-led transformation in the sector.
Arisinfra Solutions Limited is well-positioned to benefit from this shift, with a scalable, technology-driven model that supports rapid growth and efficient operations. Its digital infrastructure enables smooth onboarding of customers and vendors, high-volume transaction handling, and automated document generation, resulting in faster procurement and improved service delivery. The company’s growing reach—from 253 pin codes in FY22 to 1,075 as of December 2024—and expansion in its customer and vendor base reflect its ability to scale effectively. With increasing tech adoption in a traditionally manual sector, Arisinfra is well-equipped to capitalize on emerging opportunities and drive continued growth.
### Strengths and Opportunities
- **Digitisation and delivery efficiency:** The company combines AI, ML, and data analytics to streamline procurement, reduce timelines, and enhance decision-making. Its platform digitized over 1.21 lakh deal-related documents in the 9MFY25, up from 35,583 in FY24 and 757 in FY23. - **Data-driven procurement:** The integrated ‘ArisDelivery’ system enables real-time delivery tracking and efficient order management, while automated RFQ processing and data-backed vendor selection ensure faster, cost-effective procurement. - **Expanding presence in third-party manufacturing:** The company entered third-party manufacturing of aggregates, RMC, and walling solutions in FY23 to ensure supply reliability, improve margins, and reduce dependency on intermediaries. This segment contributed ₹190.26 crores (34.81%) to revenue in the 9MFY25, up from ₹18.41 crore (2.47%) in FY23, highlighting rapid growth and enhanced profitability.
### Risks and Threats
- **Risk of continued losses:** The company has faced past losses and may continue to do so if revenue growth and cost control are not sustained. Losses were ₹17.30 crore in FY24 and ₹15.39 crore in FY23, primarily due to derivative and receivable-related expenses. - **Geographic concentration risk:** A significant portion of the company's revenue is concentrated in Maharashtra, Karnataka, and Tamil Nadu, accounting for 94.79%, 81.05%, 85.04%, and 92.15% of revenue from operations in the 9MFY25, FY24, FY23, and FY22, respectively. As a result, any adverse developments in these states could negatively impact its business performance, financial condition, and cash flows.
Frequently Asked Questions
What is the price band for the Arisinfra Solutions IPO?
The price band for the Arisinfra Solutions IPO is set at ₹210 to ₹222 per share.
When will the Arisinfra Solutions IPO open and close?
The Arisinfra Solutions IPO will open on June 18 and remain open for subscription till June 20.
What are the key objectives of the Arisinfra Solutions IPO?
The key objectives of the Arisinfra Solutions IPO include repaying/prepaying borrowings, investing in its subsidiary, funding working capital requirements, and using proceeds for general corporate purposes.
How much revenue did Arisinfra Solutions generate in FY24?
Arisinfra Solutions generated ₹696.84 crore in revenue from operations in FY24.
What is the expected growth in the infrastructure construction B2B market by 2029?
The infrastructure construction B2B market is expected to grow from $105–115 billion in 2024 to $175–200 billion by 2029 at a CAGR of 10%–12%.