Arisinfra Solutions Limited

Arisinfra Solutions is launching an IPO worth ₹600 crores through a 100% fresh issue of 2.86 crore equity shares. The IPO will open for subscription on February 3, 2025, and close on February 5, 2025. The allotment of shares is expected to be finalized on Thursday, February 6, 2025, with the listing scheduled on BSE and NSE on Monday, February 10, 2025.

The price band for the IPO is set between ₹200 and ₹210 per share. Retail investors can apply with a minimum lot size of 70 shares, requiring a minimum investment of ₹14,700. For sNII investors, the minimum application is 14 lots (980 shares), amounting to ₹2,05,800. Meanwhile, bNII investors need to apply for a minimum of 69 lots (4,830 shares), which requires an investment of ₹10,14,300.

J.M. Financial Limited, IIFL Securities Ltd, and Nuvama Wealth Management Limited are the book-running lead managers for this IPO, while Link Intime India Private Ltd will act as the registrar.

Key Details:

• Open Date: February 3, 2025  
• Close Date: February 5, 2025
• Price Band: ₹200 to ₹210 per share
• Issue Size: ₹600.00 crores (Fresh Issue)
• Issue Type:Book Built Issue IPO
• Face Value: ₹2 per share
• Lot Size: 70 shares
• Listing Date: February 10, 2025
• Lead Managers: JM Financial Limited, IIFL Securities Ltd., Nuvama Wealth Management Ltd.
• Registrar: Link Intime India Private Ltd

Timeline

IPO Open Date:	February 3, 2025
IPO Close Date:	February 5, 2025
Basis of Allotment:	February 6, 2025
Refunds:	February 7, 2025
Credit to Demat Account:	February 7, 2025
IPO Listing Date:	February 10, 2025

About Arisinfra Solutions Limited IPO

Core Business: Arisinfra Solutions is engaged in the execution of infrastructure projects, primarily focusing on:

• Road Construction: Construction and maintenance of highways, roads, and bridges.
• Irrigation Projects: Execution of irrigation canals, dams, and other water resources projects.
• Building Construction: Construction of residential, commercial, and industrial buildings.

Market Position:

• Arisinfra Solutions has established a presence in the Indian infrastructure sector, with a focus on executing projects for both government and private clients.

Future Outlook:

• The Indian government’s focus on infrastructure development, including road and highway construction, presents significant growth opportunities for the company.
• The company may explore opportunities to expand its service offerings and enter new geographic markets.

Objective

The primary objectives of the Denta Water and Infra Solutions Limited IPO are likely to be:

• Funding Growth: The primary objective is to raise ₹600 crores through fresh issue to fund the company’s growth initiatives. This includes:
  • Expanding Operations: Entering new geographic markets and diversifying service offerings.  
  • Investing in Technology & Equipment: Upgrading machinery and technology to improve efficiency and productivity.  
  • Strengthening Working Capital: Enhancing working capital to support business operations and meet financial obligations.
• Repaying Debt: A portion of the proceeds may be used to repay existing debt obligations, thereby improving the company’s financial leverage and reducing interest costs.

Arisinfra Solutions: Weighing the Pros and Cons

POSITIVE

• Government Focus on Infrastructure: The Indian government’s strong focus on infrastructure development provides a favorable backdrop for the company’s growth.
• Growth Potential: The company operates in a sector with significant growth potential, driven by increasing government spending on infrastructure projects.
• Diversification: The company’s involvement in various segments like road construction, irrigation, and building construction can mitigate some of the risks associated with dependence on a single segment.

Negatives

• Competition: The infrastructure sector is highly competitive with established players and new entrants.
• Execution Risks: Project execution can be subject to delays, cost overruns, and unforeseen challenges, impacting profitability.
• Government Regulations: Changes in government policies, regulations, and budgetary allocations can significantly impact the company’s operations and profitability.
• Economic Slowdown: An economic slowdown can impact government spending on infrastructure projects, adversely affecting the company’s revenue and profitability.
• Raw Material Costs: Fluctuations in the prices of raw materials like cement, steel, and aggregates can impact project margins.

So,How Does Arisinfra Solutions Limited IPO Fare in Terms of Financials ?

Arisinfra Solutions Limited – Financial Data (Restated Consolidated)

Period Ended	Assets	Revenue	PAT	Net Worth	Reserves and Surplus	Total Borrowing
31 Mar 2024	492.83	702.36	-17.30	141.61	139.77	273.98
31 Mar 2023	394.95	754.44	-15.39	104.94	-41.36	220.35
31 Mar 2022	334.22	453.77	-6.49	140.30	-6.01	154.25

(₹ Crore)

Key Observations:

• Revenue Growth: Significant revenue growth from FY22 to FY23, followed by continued growth in FY24. This indicates strong order book execution and expansion of operations.
• Profitability: The company has reported losses in the past three years. This could be attributed to factors such as competitive pressures, rising input costs, or project execution challenges.
• Asset Growth: Assets have grown steadily over the past two years, reflecting investments in projects and expansion of operations.
• Debt Levels: The company has a significant debt burden, which could pose a risk to its financial stability.
• Negative Reserves: Negative reserves in FY23 indicate potential financial challenges.

Arisinfra Solutions Limited IPO Valuation :

KPI	Values
ROE:	–
ROCE:	–
EBITDA Margin:	–
PAT Margin:	–
Debt to equity ratio:	–
Earning Per Share (EPS):	–
Price/Earning P/E Ratio:	–
Return on Net Worth (RoNW):	–
Net Asset Value (NAV):	–

SWOT Analysis of Arisinfra Solutions Limited

Strengths

• Focus on a growing sector (Indian infrastructure development).
• Experience in executing various infrastructure projects.
• Potential for growth through geographic expansion and service diversification.

Weaknesses

• Competition from larger and more established players in the infrastructure sector.
• Dependence on government contracts and their associated risks.
• Potential for project delays, cost overruns, and regulatory hurdles.

Opportunities

• Government’s continued focus on infrastructure development presents significant growth opportunities.  
• Exploring new technologies like construction technology, automation, and sustainable construction practices.
• Diversification into new segments within the infrastructure sector.

Threats

• Economic slowdown and its impact on government spending.
• Rising input costs (raw materials, labor) impacting project profitability.
• Increased competition from both domestic and international players.

Competitive Analysis:Arisinfra Solutions IPO

Arisinfra Solutions faces competition from major players in the Indian infrastructure sector, such as:

• Larsen & Toubro (L&T)
• Tata Projects
• Shapoorji Pallonji
• NCC
• KNR Constructions

Arisinfra Solutions Limited IPO GMP

• Grey market premium as on 03-03-2025 = ₹ /Share

Disclaimer:

• IPO Grey Market Premium (Arisinfra Solutions Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Arisinfra Solutions IPO

🔴 Live Subscription Status 🔴

03/02/2025 10:00 AM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)
Non Institutional Investors(NIIs)
Retail Individual Investors(RIIs)
Employees
Total

FINAL TAKEAWAY

✅ May Apply

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