Arisinfra Solutions' IPO receives 24% subscription on day 1 of offer

The retail investor segment was subscribed 1.04 times on the first day, while non-institutional investor participation stood at 19 per cent of the allocated quota

The initial public offering (IPO) of Arisinfra Solutions Ltd was subscribed 24 per cent on the first day of bidding on Wednesday.

 

The retail individual investor (RII) category was subscribed 1.04 times, while the non-institutional investor quota saw a 19 per cent subscription.

 

The IPO received bids for 3,178,815 shares against 13,084,656 shares on offer, according to data from the National Stock Exchange (NSE).

 

The IPO, valued at approximately ₹500 crore, will close on June 20. The price band for the offer has been set between ₹210–₹222 per share.

 

Arisinfra Solutions operates as a B2B technology-enabled platform that focuses on digitising the procurement process for construction materials. 

Anchor investors

On Tuesday, the company announced it had raised ₹225 crore from anchor investors ahead of the IPO opening for public subscription.

 

A circular on the BSE website stated that Arisinfra Solutions allotted 10,126,946 shares to 15 funds at ₹222 per equity share, which is the upper end of the price band. The company is valued at around ₹1,800 crore at the upper limit.

 

Anchor investors allotted shares include Astorne Capital VCC, Niveshaay Hedgehogs Fund, Citigroup Global Markets Mauritius, Rajasthan Global Securities, Sunrise Investment, Nexus Global Opportunities Fund, Zeal Global Opportunities Fund, Saint Capital Fund, and Beacon Stone Capital.

Grey market premium

The shares were trading in the unlisted markets at around ₹249, indicating a grey market premium (GMP) of ₹27, according to data from IPOWatch.

 

The IPO comprises a fresh issue of equity shares worth ₹499.6 crore. There is no offer-for-sale (OFS) component.

Use of proceeds

Proceeds from the IPO will be used to meet working capital requirements, invest in the subsidiary Buildmex-Infra for its working capital, purchase a portion of shares from existing shareholders of subsidiary ArisUnitern Re Solutions Pvt Ltd, repay loans, and meet general corporate requirements.

 

The Securities and Exchange Board of India (Sebi) granted Arisinfra Solutions approval to raise capital through an IPO on November 18, 2024.

 

The book running lead managers for the issue are JM Financial, IIFL Capital Services, and Nuvama Wealth Management.