Arisinfra Solutions’ Rs 500 Cr IPO Opens June 18: A Tech-Driven Bet on India’s Construction Supply Chain - Should You Invest?

With a scalable, asset-light platform and expanding national footprint, Arisinfra Solutions is transforming the fragmented construction procurement market. Backed by marquee clients and a dominant niche presence, here’s our take on the IPO

Arisinfra Solutions Ltd. will launch its Rs 499.6 crore IPO on June 18, 2025, closing on June 20. The book-built issue comprises a fresh issue of 2.25 crore equity shares. The company, which streamlines material procurement for infrastructure and construction firms, will list on the BSE and NSE, with a tentative listing date of June 25, 2025. The price band is set at Rs 210–Rs 222 per share. Retail investors must apply for a minimum of 67 shares, requiring Rs 14,070, but bidding at the cutoff price (~Rs 14,874) is advised to avoid oversubscription risk. The minimum lot size for sNII is 14 lots (Rs 2.08 lakh), and for bNII, it's 68 lots (Rs 10.11 lakh). The allotment is expected to be finalized on June 23. JM Financial, IIFL Capital Services, and Nuvama Wealth are the book-running lead managers, while Link Intime is the registrar. Investors should evaluate strengths, risks, and growth potential before applying.

See the issue details below.

Objects of the Issue

Arisinfra Solutions Limited proposes to utilize the net proceeds from its IPO for the following purposes:

• Funding working capital requirements of the Company – Rs 72.5 crore

• Prepayment or repayment of all or part of certain outstanding borrowings – Rs 17.958 crore

• Pursuing inorganic growth through potential acquisitions, strategic initiatives, and for general corporate purposes

These allocations aim to support the company’s expansion, strengthen its balance sheet, and enhance operational flexibility.

Promoter

The promoters of Arisinfra Solutions Ltd include Ronak Kishor Morbia (lead promoter), Bhavik Jayesh Khara, Siddharth Bhaskar Shah, Jasmine Bhaskar Shah, Priyanka Bhaskar Shah, Bhaskar Shah, Aspire Family Trust, and Priyanka Shah Family Trust.

Pre-issue, the lead promoter held 41.10 per cent and the total promoter group held 51.67 per cent of the company’s equity. Promoters are not selling any shares in the IPO and will not receive any proceeds. Post-issue, 20 per cent of the promoter holding will be locked in for 18 months.

Company Profile

Arisinfra Solutions Ltd is a tech-enabled B2B platform that streamlines bulk procurement of construction materials like cement, steel, RMC, and chemicals for real estate and infrastructure companies. Operating across 18 Indian states, it connects buyers with over 1,700 vendors through a scalable, asset-light model combining digital tools and regional expertise.

Between April 2021 and December 2024, Arisinfra supplied 14.1 million metric tonnes of materials, with Maharashtra alone contributing 52 per cent of revenue for 9M FY25. As of December 2024, the platform served 2,659 customers across 963 pin codes.

Clients include prominent players like Capacit’e Infraprojects, J Kumar Infraprojects, and Afcons. Its subsidiary, ArisUnitern Re Solutions, offers value-added services like advisory and marketing to real estate developers.

Industry Outlook 

India’s construction materials market remains highly unorganized and fragmented, posing persistent challenges in terms of supply chain inefficiencies, cost overruns, and inconsistent quality for both vendors and buyers. However, this structural disarray also presents significant opportunities for tech-enabled, platform-based procurement models like Arisinfra Solutions.

The infrastructure construction B2B market was valued at USD 105–115 billion in 2024 and is projected to grow at a robust CAGR of 10–12 per cent, reaching USD 175–200 billion by 2029. Similarly, the B2B real estate construction market stood at USD 170–180 billion in 2023 and is expected to expand at a 6–8 per cent CAGR to USD 235–255 billion by 2029. This sustained double-digit growth reflects increasing demand for streamlined, scalable procurement processes in a sector historically dominated by fragmented, offline supply chains.

The construction material market, estimated at USD 235–275 billion in 2024, has grown steadily with 7–9 per cent annual growth, while the finished goods segment has seen even faster expansion, with 10–12 per cent growth in 2024 alone. These trends underline the growing need for digitization, aggregation, and transparency in construction procurement.

Financials 

Arisinfra Solutions has shown a notable turnaround in 9M FY25, reporting a revenue of Rs 546.52 crore and a net profit of Rs 6.53 crore, compared to a net loss of Rs 172.98 crore in FY24. EBITDA rose sharply to Rs 39.88 crore with a margin of 7.30 per cent, up from just 1.87 per cent in FY24. EPS turned positive at Rs 0.62 after three years of negative earnings.

(Source – Company’s RHP)

(Source – Company’s RHP)

Arisinfra Solutions' revenue declined by 6.6 per cent in FY24 to Rs 696.84 crore, mainly due to lower traded goods sales and the discontinuation of in-house manufacturing. However, service revenue rose to Rs 29.68 crore, supported by a broader customer base.

PPE (property plant and equipment) grew to Rs 2.40 crore in FY24 due to office equipment additions but declined to Rs 1.96 crore by Dec 2024 due to depreciation. Intangible assets under development surged to Rs 33 crore by Dec 2024, reflecting continued tech investments in digitization, credit analysis, and operations.

(Source – Company’s RHP)

Arisinfra Solutions Limited operates on a lean inventory model, holding minimal stock limited to in-transit goods, which eliminates the need for warehousing. Materials are dispatched directly from vendors to customers upon order, enabling cost control and operational efficiency. Inventory, mainly comprising traded goods, is valued conservatively, and the company expects to maintain low levels, with projected inventory days of just one for FY26 and two for FY27, including for its subsidiary, Buildmex-Infra.

On the receivables side, the company has seen fluctuating trends, with trade receivables as a percentage of revenue rising to 57.75 per cent in 9MFY25 from 45.97 per cent in FY24 and 36.87 per cent in FY23, largely due to customer payment delays linked to project slowdowns. Arisinfra mitigates credit risk through structured credit approval systems, continuous monitoring, and a trade credit insurance cover of Rs 30 crore, though it is pursuing legal recovery of dues amounting to Rs 4.69 crore. Despite its efficient inventory management, the company faces challenges in cash flow conversion, reflected in a prolonged average credit cycle (139 days in 9MFY25) and rising net working capital days (116 days in 9MFY25).

This mismatch between receivables and payables has led to a steady increase in net working capital—from Rs 243 crore in FY22 to Rs 363.26 crore as of December 2024. To fund these needs, Arisinfra has historically relied on internal accruals, equity, and borrowings from banks, NBFCs, and related parties. As of December 31, 2024, it had drawn Rs 90.89 crore of its Rs 100 crore sanctioned working capital facilities. Looking ahead, the company plans to utilize Rs 177 crore from IPO proceeds for working capital needs (Rs 133.46 crore in FY26 and Rs 43.54 crore in FY27) and Rs 48 crore for its subsidiary. Any additional requirements will be funded through internal accruals and fresh borrowings. It also intends to repay part of its outstanding debt using IPO proceeds to lower debt servicing costs and improve its net debt-to-equity ratio, which stood at 1.64x as of December 2024. Further reduction in debt through IPO proceeds is expected to lower finance costs, improve cash flows, and support profitability. With high past outflows on interest payments, this move will ease the company’s working capital burden and enhance bottom-line performance, aiding its shift from losses to sustainable profit in the coming years.

Key ratios

 (Source – Company’s RHP)

Listed Peer Comparison 

As per its RHP, Arisinfra Solutions Limited has no direct listed peers due to its distinct B2B, tech-led construction material procurement model. Its integrated vendor network and pan-India delivery set it apart from traditional players. While private firms like Infra.Market, OFB Tech, and Zetwerk operate in similar spaces, their unlisted status makes KPI-based benchmarking unviable. SG Mart is the only listed peer identified, but it is not strictly comparable due to key differences in business model and scale.

SWOT Analysis of Arisinfra Solutions Ltd

Arisinfra Solutions has established itself as a tech-enabled disruptor in the fragmented construction materials supply chain through its asset-light model, AI/ML-driven credit assessment, and a fast-growing vendor network. Its strong network effect—where more customers attract more vendors and vice versa—has enhanced platform scale and stickiness, with registered vendors rising from 441 in FY22 to 1,458 in FY24. High customer retention, reflected in 73 per cent of FY24 revenue from repeat clients, further underscores its operational strength.

The company is well-positioned to benefit from India’s infrastructure and real estate boom, projected to grow at 10–12 per cent CAGR till 2029. Its increasing focus on value-added products and a digital-first procurement model offers a clear edge as the industry formalizes. Backed by experienced leadership, Arisinfra stands to tap significant growth opportunities in a largely underserved and tech-deficient market.

Arisinfra Solutions faces key challenges, including a short operating history, negative operating cash flows, and high working capital dependency driven by long receivable cycles (160+ days) and customer concentration with 45 per cent of revenue comes from its top 10 clients. The lack of long-term vendor contracts and dependence on third-party logistics add to operational risk, while a high debt-to-equity ratio of 1.64x and reliance on promoter loans raise liquidity concerns.

Externally, the company is exposed to cyclicality in construction-related sectors and faces intense competition from both unorganised players and well-funded tech rivals. Its asset-light, tech-based model offers limited entry barriers, making it vulnerable to replication. Sustaining growth will depend on improving cash flows, reducing funding reliance, and retaining key clients.

Valuation and Outlook

Arisinfra Solutions operates in a fast-evolving yet highly fragmented B2B construction materials market, offering a digital-first, tech-enabled procurement platform. With a virtual monopoly in its niche and a strong network of vendors and repeat customers, the company is well-positioned to ride the formalisation wave in construction supply chains. Its AI-driven credit assessment, asset-light model, and pan-India reach offer structural advantages in an industry riddled with inefficiencies. However, financial performance remains a concern. The company was loss-making until FY24 and has only recently turned the corner with a marginal profit in 9MFY25, supported by a PAT margin of just 1.19 per cent and RoNW of 2.26 per cent.

At the upper price band, ASL’s post-issue market cap stands at Rs 1,799 crore. Based on annualised 9MFY25 earnings, this translates to a steep P/E of 273x, while FY24 earnings remain negative, rendering traditional valuation metrics like P/E unworkable. The price-to-sales ratio is also elevated at 2.58x, significantly higher than its closest listed peer SG Mart’s 0.76x, even though SG Mart trades at a far lower P/E of 43x. While the market opportunity is attractive—with the infrastructure and real estate sector expected to grow at 10–12 per cent CAGR till 2029—the IPO appears aggressively priced relative to current financials.

While Arisinfra’s differentiated, tech-enabled model and early-mover advantage in a largely unorganised construction materials space offer long-term growth potential, concerns remain. Thin operating margins, high working capital requirements, elevated valuation, and the risk of business model replication temper near-term enthusiasm. Given these factors, the IPO appears aggressively priced and may not deliver strong listing gains.

We recommend an Avoid rating for most investors. However, those with a high-risk appetite and a long-term investment horizon may consider limited exposure, while conservative investors are better off waiting for a more attractive valuation or sustained improvement in financial performance.