Infra.Markets Kicks Off Plans For $300 Mn To $400 Mn IPO

SUMMARY

The startup is looking to appoint a syndicate of four to five investment banks to helm the public offering, that will include a fresh issue of shares as well as secondary share sale

The proceeds from the public issue will largely be utilised to repay the debt incurred for the startup’s organic and inorganic growth initiatives

Infra.Market’s operating revenue soared 90% YoY to INR 11,846.5 Cr in FY23, while net profit declined 17% to INR 155.2 Cr

Setting its initial public offering (IPO) plans in motion, B2B ecommerce platform Infra.Market has reportedly kicked off discussions with investment banks for its public listing.

The startup is looking to appoint a syndicate of four to five investment banks to helm the $300 Mn to $400 Mn public offering, Moneycontrol reported, citing sources.

“They have been engaging with bankers and are likely to soon call for formal pitches for the IPO mandate,” a source was quoted as saying.

As per the report, the proposed IPO will include a fresh issue of shares as well as secondary share sale. A portion of the proceeds from the public issue will be utilised to repay the debt incurred for the startup’s organic and inorganic growth initiatives.

However, the discussions are still in early stages and the final numbers could change.

Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market operates a marketplace for construction products and manages the entire value chain from manufacturing to logistics. The company offers a range of building materials, including concrete, steel, pipes, fittings, and construction chemicals.

Backed by prominent investors such as Tiger Global, Accel, and Nexus Ventures, Infra.Market has raised over $415 Mn in funding to date.

Infra.Market reported an operating revenue of INR 11,846.5 Cr in the fiscal year 2022-23 (FY23), up 90% from INR 6,236.3 Cr in the previous fiscal year. Net profit declined 17% year-on-year (YoY) to INR 155.2 Cr in the fiscal year ended March 2023.

Meanwhile, in preparation for its public market debut, Infra.Market plans to open 100 franchise stores by March 2024 and increase its number of ready-mix concrete plants to 180 by the end of FY25.

Interestingly, the move to go public comes months after reports surfaced that the construction marketplace’s subsidiary RDC Concrete was slated to go public soon. Infra.Market had acquired the ready-mix concrete (RMC) company for $90 Mn in 2022.

It is pertinent to note that the startup also bought a stake in Shalimar Paints for INR 270 Cr in 2022 and Strata Geosystems for INR 910 Cr in 2023.

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