Aris Infra Plans ₹600 Crore IPO: Draft Papers Filed with SEBI

Mumbai, India — Aris Infra, a cutting-edge platform for construction material procurement, has submitted a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), aiming to raise up to ₹600 crore through an initial public offering (IPO). This move marks a significant step for the Mumbai-based company as it seeks to further expand its innovative solutions in the construction industry.

New IPO to Fuel Growth

The upcoming IPO will consist solely of newly issued shares, with no existing investors selling their stakes. Aris Infra plans to use the funds from the IPO for several strategic purposes. The primary uses include repaying and prepaying outstanding borrowings, enhancing working capital, and investing in its subsidiary, Buildmex-Infra Pvt Ltd. Additionally, the company aims to acquire partial shareholdings from its subsidiary, ArisUnitern Re Solutions, and allocate funds for general corporate needs and potential acquisitions.

Founded in February 2021 by Ronak Morbia and Bhavik Khara, Aris Infra leverages artificial intelligence (AI) and machine learning (ML) to streamline construction material procurement. The platform connects property developers with vendors, digitalizing the supply chain in the construction sector. This technological edge has attracted significant attention from high-profile investors, including PharmEasy CEO Siddharth Shah, San Francisco-based Think Investments, and prominent private equity firms like TPG Capital and BlackRock.

Financial Performance and Market Position

Aris Infra has demonstrated robust financial health, recording a revenue of ₹700 crore and an EBITDA of ₹40 crore for fiscal 2024. Since its inception, the company has maintained profitability and garnered notable clients such as the Tata Group, JSW, UltraTech Cement, ACC, and Larsen & Toubro, among others. The company has raised ₹160 crore in equity and an equal amount in debt, with its most recent funding round in January 2022 valuing the company at approximately $100 million.

Market Context and Competitive Landscape

The IPO comes at a time when the construction material procurement industry is seeing increased activity. Earlier this year, Infra.Market, another player in this space, raised $50 million at a valuation of $2.5 billion. Aris Infra's strategic move to go public aims to capture a share of this growing market by leveraging its AI and ML capabilities to optimize procurement processes.

JM Financial, IIFL Securities, and Nuvama Wealth Management are the book running lead managers for the proposed IPO.