Mumbai, June 17
Arisinfra Solutions Limited, a company that provides procurement solutions for infrastructure and construction firms, is launching its initial public offering (IPO) on June 18 to raise nearly Rs 500 crore from the primary market.
However, the company is entering the market at a time when its financial performance has shown signs of stress. According to its draft red herring prospectus (DRHP), in the financial year 2023-24 (FY24), Arisinfra Solutions posted a net loss of Rs 17.3 crore, widening from a loss of Rs 15.39 crore in FY23.
The company's total income also declined 6.9 per cent year-on-year (YoY), falling to Rs 702.36 crore from Rs 754.44 crore in the previous fiscal (FY23).
Despite the full-year losses, the company turned profitable in the first nine months of FY24, reporting a net profit of Rs 6.53 crore on a revenue of Rs 557.76 crore as of December 31, 2024.
Arisinfra Solutions’ IPO is a book-built issue worth Rs 499.6 crore, consisting entirely of a fresh issue of 2.25 crore shares.
The price band for the IPO is set between Rs 210 and Rs 222 per share. The IPO will close on June 20, with allotment expected on June 23 and listing scheduled for June 25 on both NSE and BSE.
The grey market premium (GMP) for the issue stood at Rs 25 as of June 17 -- suggesting a potential listing price of around Rs 247, which is about 11 per cent higher than the upper end of the price band.
Retail investors can apply for a minimum lot size of 67 shares, costing Rs 14,874. The issue has been structured with 75 per cent reserved for Qualified Institutional Buyers (QIBs), 15 per cent for Non-Institutional Investors (NIIs), and only 10 per cent for retail investors.
The company has operations across 18 states in India and plans to use the IPO proceeds to fund working capital, repay debt and for general corporate purposes.
JM Financial, IIFL Capital Services, and Nuvama Wealth Management are the lead managers of the IPO, while MUFG Intime India is the registrar.