ArisInfra Ends First Trading Session 22% Below IPO Price

After listing at a discount to its IPO price, shares of B2B construction marketplace ArisInfra Solutions witnessed a bearish sentiment throughout the first trading session. 

The company’s shares ended today’s trading session at INR 174.10 on the BSE, down 21.6% from the issue price of INR 222. The company’s market capitalisation stood at $164 Mn (about INR 1,411.1 Cr) at the end of the day as against IPO valuation of $209 Mn.

The stock’s closing price was also 16.7% lower than its opening price of INR 209.10 on the BSE. The stock ended at INR 173.9 on the NSE today, down 21.7% from the issue price and 15.2% from the listing price of INR 205.

Overall, 19.3 Lakh equity shares of the company changed hands on the BSE on the first day of trading.  

ArisInfra saw a weak investor sentiment on its listing day despite the rally in the broader market. While Sensex gained 0.85% to end today’s trading session at 82,755.51, Nifty 50 moved up 0.80% to close at 25,244.75.

The bearish sentiment for ArisInfra was predicted by market analysts ahead of its listing. As per platforms tracking the grey market, the company had a flat grey market premium (GMP) leading up to its listing. This typically implies weak or neutral investor appetite and confidence in the stock’s immediate post-listing performance.

The company’s IPO closed with an oversubscription of 2.65X on June 20, with investors bidding for 3.47 Cr shares as against 1.31 Cr shares on offer. Retail investors were the most interested in the offering, oversubscribing their quota by 5.6X. However, the response of qualified institutional buyers (QIBs) was comparatively tepid. They oversubscribed their quota by 1.4X, placing bids for 1.02 Cr shares against the 71.37 Lakh shares on offer. 

Meanwhile, brokerage firms were also not overly bullish on the Mumbai-based company’s public listing. Citing aggressive pricing, Bajaj Broking ascribed a ‘Subscribe’ rating with a long-term view to the IPO.

“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 long term, others may simply stay away from this pricey bet,” it said. 

Religare Broking gave a ‘Neutral’ rating to ArisInfra IPO. In its note, Religare noted that  the company operates in a highly fragmented and price-sensitive construction materials market, where demand cycles are closely tied to macroeconomic and infrastructure spending trends. 

“Intense competition from unorganised players could pressure margins and growth. The company’s rapid scale-up also depends on maintaining supply chain efficiency and managing working capital prudently. Any delays in technology adoption or strategic execution may impact its ability to deliver consistent performance,” its note read.

On the financial front, the company turned profitable in the first nine months of FY25, posting a profit of INR 6.5 Cr as against a loss of INR 17.3 Cr in FY24. Its operating revenue stood at INR 546.5 Cr during 9M FY25 as against a loss of INR 696.8 Cr in FY24. 

ArisInfra is likely to file its financials for the full year FY25 soon.