[Update] ArisInfra’s IPO Closes With 2.65X Subscription

Update | June 20, 10:04 PM

The IPO of B2B ecommerce company ArisInfra Solutions closed with an oversubscription of 2.65X, with investors bidding for 3.47 Cr shares as against 1.31 Cr shares on offer.

The portion reserved for retail investors was subscribed the most at 5.59X, getting bids for 1.33 Cr shares against the 23.79 Lakh shares on offer. Non-institutional investors (NIIs) trailed retail investors in terms of subscription. They placed bids for 1.12 Cr shares as against the 35.69 Lakh shares reserved for them, translating to 3.14X subscription.

Qualified institutional buyers’ (QIBs) quota saw 1.42X subscription, receiving bids for 1.02 Cr shares against the 71.37 Lakh shares on offer. In this, the highest interest was shown by foreign institutional investors (FIIs), who placed bids for 95.82 Lakh shares. Response from domestic financial institutions and mutual funds was tepid, as they bid for 4,500 and 938 shares, respectively.

Original | June 20, 3:38 PM

B2B ecommerce company ArisInfra Solutions’ public issue continued to witness high investor interest on the final day of bidding. As per the data on the BSE, the issue was oversubscribed 2.44X at 03:05 PM on day 3, with bids placed for 3.19 Cr shares as against the 1.31 Cr shares on offer.

Retail investors were the most bullish about the company’s IPO, oversubscribing their quota 5.15X. These investors placed bids for 1.23 Cr shares against the 23.79 Lakh shares on offer. 

Trailing retail investors were non-institutional investors (NIIs), who bid for 99.10 Lakh shares against the 35.69 Lakh shares earmarked for them. This translated to 2.78X oversubscription. 

As is generally the case, interest from qualified institutional buyers (QIBs) picked up significantly on day three. They placed bids for 97.50 Lakh shares against the 71.37 Lakh shares reserved for them, leading to 1.37X oversubscription. 

In the QIB category, foreign institutional investors (FIIs) showed the highest interest and placed bids for 91.91 Lakh shares. Domestic financial institutions and mutual funds only bid for 4,500 and 938 shares, respectively. 

Founded in 2021 by Ronak Morbia and Bhavik Khara, ArisInfra is a B2B construction material procurement platform for real estate and infrastructure developers for products like ready-mix concrete, steel, cement, and construction chemicals, among others. 

It filed its DRHP in August 2024 to raise INR 600 Cr. However, the company reduced its IPO size to INR 499.6 Cr when it filed its RHP in June, given that it had already raised INR 80 Cr in its pre-IPO placement round earlier in January. 

The company’s IPO comprises solely a fresh issue. It has set a price band of INR 210 to INR 222 for its public offering, valuing it at $209 Mn at the upper end of the price band. Post the bidding process, the company will look to get listed on the NSE and the BSE on June 25. 

In its IPO note on ArisInfra, brokerage firm Bajaj Broking has suggested investors to subscribe to the IPO but with a long term outlook. The brokerage highlighted ArisInfra’s market dominance in the B2B construction materials segment as well as it turning profitable in the first nine-months of FY25. However, it said that the valuation the company is seeking is high. 

“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,” Bajaj Broking said.