ArisInfra Gets SEBI Nod For INR 580 Cr IPO

SUMMARY

SEBI issued an observation letter to ArisInfra on November 13, as per the information available on the regulator’s website

ArisInfra cut the size of the fresh issue in the IPO to INR 579.60 Cr from INR 600 Cr earlier

It is likely to undertake a pre-IPO placement of up to INR 115.92 Cr prior to filing its RHP

About three months after it filed its draft red herring prospectus (DRHP), B2B ecommerce platform ArisInfra has received SEBI’s nod to go ahead with its initial public offering (IPO).

SEBI issued an observation letter to ArisInfra on November 13, as per the information available on the regulator’s website. In SEBI’s parlance, issuance of the observation letter is a green signal for the IPO.

In an addendum to its DRHP, the ecommerce platform informed SEBI on Monday (November 18) that it has cut the size of the fresh issue in the IPO to INR 579.60 Cr from INR 600 Cr earlier.

Further, it also is likely to undertake a pre-IPO placement of up to INR 115.92 Cr prior to filing its RHP.

ArisInfra’s IPO will consist solely of a fresh issue of shares, with no offer-for-sale component. The book running lead managers for the IPO are JM Financial, IIFL Capital, and Nuvama.

Besides reducing the size of its IPO, the company also modified its proposed utilisation of the fresh proceeds netted from the IPO.

The company has cancelled its plan to buy partial shareholdings from existing shareholders of ArisUnitern Re Solutions Pvt Ltd. It will use the IPO proceeds to repay outstanding borrowings, fund working capital requirements, invest in subsidiary Buildmex-Infra Pvt Ltd, among others.

Founded in 2021 by Ronak Morbia and Bhavik Khara, ArisInfra uses AI and machine learning to simplify construction material procurement. The startup delivers the products from the manufacturers of raw materials to businesses through its online platform.

It operates in 900 pincodes and 18 Indian states. Its customer base stood at 2,133 and vendor count at 1,458, as per its DRHP. It counts The Wadhwa Group, ACC, Piramal Realty, Tata Projects, and JSW Cements among its clients.

The startup is backed by the likes of Pharmeasy CEO Siddharth Shah and his family members Jasmine Bhaskar Shah, Priyanka Bhaskar Shah, Bhaskar Shah, Aspire Family Trust and Priyanka Shah Family Trust.

ArisInfra posted a net loss of INR 17.33 Cr in FY23 as against a loss of INR 15.48 Cr in FY23. However, this included a fair value loss of INR 20.55 Cr on derivatives.

Meanwhile, its operating revenue declined 6.5% to INR 696.84 Cr during the year from INR 746.07 Cr in FY23.