ArisInfra Shares Surge Nearly 8% After Co Bags INR 100 Cr Order

After being on a downward trend since its listing on the bourses, shares of ArisInfra Solutions rose 7.8% to close today’s session at INR 172.65. During the intraday trading, the stock zoomed as much as 12% to INR 178.95. 

This came a day after ArisInfra announced a major contract win for its subsidiary ArisUnitern RE Solutions. The subsidiary, which is engaged in providing businesses integrated construction materials and other services, secured an INR 100 Cr contract for a residential project in Bengaluru’s Nandi Hills region.

The contract is projected to add about INR 100 Cr to the company’s combined materials and services order book with “high margins”, ArisInfra said in a statement. Overall, the residential project, which has been commissioned by Village Wave Pvt Ltd, spans about 21.9 acres and has a gross development value (GDV) of INR 288 Cr. 

The agreement between ArisUnitern and Village Wave will give ArisInfra’s subsidiary exclusive rights to supply “all construction materials and provide end-to-end development management services including project monitoring, sales and collections.”

“This project not only strengthens our integrated solutions platform and deepens our presence in Bengaluru’s high-growth corridor but also exemplifies our commitment to delivering value driven, high-margin projects with strong profit visibility,” ArisInfra CEO Srinivasan Gopalan said. 

ArisInfra is a tech-driven B2B platform that focuses on streamlining the procurement of construction materials. It simplifies the process of buying materials like cement, steel, and aggregates for construction projects, using digital tools and a network of suppliers. 

With its public market debut last month, ArisInfra became the first startup in the B2B construction markets segment to list on the Indian bourses. Meanwhile, its competitors Infra.Market, Zetwerk, OfBusiness, among others, have also initiated on their road to the public markets. 

However, as per Bajaj Broking, ArisInfra has a leg up on its competition. “ASL is engaged as a technology-enabled B2B supplier for construction materials (space), that has a growing market. It enjoys virtual monopoly in the segment and is the most preferred partner in construction activities,” the brokerage said in its IPO note on the company.

On the financial front, the listed company trails its private competitors. While ArisInfra’s revenue for FY24 stood at INR 696.84 Cr, Infra.Market’s operating revenue for the fiscal stood at INR 14,530 Cr. 

Despite the rally today, ArisInfra’s shares are down over 17% from its listing price of INR 209 on the BSE. This also represents a 24% decline from its IPO price of INR 222.