[Update] ArisInfra IPO: Issue Subscribed 24% On Day 1

Update | June 18, 8:03 PM

ArisInfra Solutions’ IPO ended the first day of bidding with an overall subscription of 24%, with retail investors leading the pack. 

The portion reserved for retail investors was oversubscribed 1.04X, receiving bids for 24.7 Lakh shares as against 23.7 Lakh shares on offer. 

NIIs bid for 6.9 Lakh shares as against the 35.68 Lakh shares reserved for them, resulting in 19% subscription. However, QIBs bid for a mere 10,988 shares as against 71.37 Lakh shares on offer. 

Original | June 18, 3:37 PM

The IPO of B2B ecommerce company ArisInfra Solutions received a lukewarm response on the first day of bidding and was subscribed 18% till 3 PM on the first day of bidding.

According to BSE data, the IPO received bids for 23.91 Lakh shares as against 1.3 Cr shares on offer.

The retail investors’ portion saw the highest subscription at 80%, receiving bids for 19.72 Lakh shares against 23.79 Lakh shares on offer.

Qualified institutional buyers (QIBs) placed bids for only 6,432 shares against 71.37 Lakh shares on offer.

Non-institutional investors (NIIs) bid for 4.4 Lakh shares compared to 36.68 Lakh shares reserved for them, resulting in a subscription of 12%. 

ArisInfra has set a price band of INR 210 to INR 222 for its public issue, which comprises only a fresh issue of INR 499.6 Cr. Of the total offer, 75% is reserved for QIBs, while NIIs and retail investors have been allocated 15% and 10%, respectively.

The IPO will close on June 20, after which the company’s shares are expected to list on the stock exchanges on June 25. The company is eyeing a post-issue implied market cap of INR 1,799 Cr (around $209 Mn) at the upper price band of INR 222. 

Yesterday, ArisInfra raised INR 224.8 Cr from anchor investors by allotting 1.01 Cr shares to 15 investors, including Astorne Capital VCC, Niveshaay Hedgehogs Fund, Nexus Global Opportunities Fund, at INR 222 per share.

Founded in 2021 by Ronak Morbia and Bhavik Khara, ArisInfra is a B2B construction material procurement platform catering to real estate and infrastructure developers. It supplies products such as ready-mix concrete, steel, cement, and construction chemicals, among others. Besides the founders, ArisInfra counts PharmEasy founder Siddharth Shah, his family office, and relatives among its promoters and promoter group.

A significant portion of the IPO proceeds will be used to repay outstanding borrowings. As per the RHP, INR 204.6 Cr from the funds raised will go toward repaying a debt availed from its promoter group entity, Priyanka Medical Pvt Ltd (PMPL), in 2021 at an interest rate of 12% per annum. PMPL is promoted by the parents of PharmEasy founder Siddharth Shah.