ArisInfra Solutions Gets SEBI Approval For Rs 600 Crore IPO

The Securities and Exchange Board of India approved the initial public offerings of Arisinfra Solutions Ltd. Arisinfra Solutions filed for IPO on Aug. 14, 2024, and obtained an observation on Nov. 13, 2024, according to an update released on Monday.

The proposed IPO is entirely a fresh issue of equity shares and has no offer-for-sale component, according to the draft red herring prospectus.

ArisInfra Solutions is a Mumbai-based business-to-business (B2B) company leveraging technology to streamline and digitise the procurement of construction materials.

The company aims to raise up to Rs 600 crore through the IPO, which will consist of a fresh issue of shares, as per the draft red herring prospectus.

The proceeds from the IPO are earmarked for several key purposes: approximately Rs 204.60 crore will be allocated towards repaying or prepaying existing borrowings, while Rs 177 crore is designated to support the company's working capital needs.

Additionally, Rs 48 crore will be invested in the company's subsidiary, Buildmex-Infra Private Limited, to fund its working capital. Arisinfra also plans to use Rs 20.40 crore to acquire a partial stake from current shareholders of another subsidiary, ArisUnitern Re Solutions Pvt. Ltd. (formerly ArisUnitern Pvt. Ltd.).

The remaining funds will be directed towards general corporate purposes and potential acquisitions.

JM Financial Ltd., IIFL Securities Ltd., and Nuvama Wealth Management Ltd. are the book running lead managers for the public issue.