ArisInfra Solutions IPO Day 1 Live: Issue subscribed 2% so far. Check GMP, subscription status, more. Apply or not?

ArisInfra Solutions IPO: ArisInfra Solutions Ltd’s initial public offering starts today, June 18, and will end on June 20. This B2B technology-enabled firm aims to make the procurement process for construction materials easier and more digital.

On Tuesday, the company announced it secured ₹225 crore from anchor investors just one day before its public share sale begins. Shares in the anchor round have been allocated to various entities, including 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, among others.

The ArisInfra Solutions IPO price band has been fixed in the range of ₹210 to ₹222 per equity share with a face value of ₹2. ArisInfra Solutions IPO lot size is 67 equity shares and in multiples of 67 equity shares thereafter. At the upper end of the price band, the company’s valuation approaches ₹1,800 crore.

The firm announced that 75% of the total offering has been allocated for qualified institutional buyers, while 15% is designated for non-institutional investors, and the final 10% is set aside for retail investors.

ArisInfra Solutions IPO Day 1 Live: Subscription Status

ArisInfra Solutions IPO subscription status is 2% on day 1, so far. The retail portion was subscribed 8%, and NII portion was booked 2%. Qualified Institutional Buyers (QIBs) portion is yet to receive bids.

The company has received bids for 2,76,040 shares against 1,30,84,656 shares on offer, at 10:21 IST, according to data on BSE.

ArisInfra Solutions IPO Day 1 Live: All you need to know about the firm

Between April 1, 2021, and March 31, 2024, the company successfully delivered 10.35 million metric tonnes of construction materials, including aggregates, ready-mix concrete, steel, cement, construction chemicals, and walling solutions, by utilizing 1,458 vendors and serving 2,133 customers across 963 postal codes in various areas, including Mumbai (Maharashtra), Bengaluru (Karnataka), and Chennai (Tamil Nadu).

The company’s customers comprise Capacit’e Infraprojects Limited, J Kumar Infraprojects Limited, Afcons Infrastructure Limited, EMS Limited, S P Singla Constructions Private Limited, among others.

ArisInfra Solutions IPO Subscription Status

Subscription for the public issue will open at 10:00 IST during Wednesday’s deals.

ArisInfra Solutions IPO Review

As per SBICAP Securities, the company is strategically positioned to benefit from its integrated supply model by utilizing AI-driven technology to serve key industry players. This establishes it as a well-organized and holistic provider in a market that is largely disjointed.

The brokerage anticipates that the initial listing will be subdued due to high valuations. Nonetheless, for investors interested in gaining exposure to a modern platform for construction materials, we suggest subscribing to the offering with a focus on long-term investment.

According to BP Equities, the company currently holds a P/E ratio of 273x at the upper price band, based on the projected annual earnings for FY25, which is relatively elevated; however, it is well-positioned for future growth given that it is the sole player in this emerging market, planning to repay debt and invest in its subsidiary.

Therefore, the brokerage firm suggests a ‘SUBSCRIBE’ rating for investors with a medium to long-term investment outlook.

ArisInfra Solutions IPO GMP today

ArisInfra Solutions IPO GMP today is +25. This indicates ArisInfra Solutions share price was trading at a premium of ₹25 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of ArisInfra Solutions share price is indicated at ₹247 apiece, which is 11.26% higher than the IPO price of ₹222.

After analysing the grey market activities from the past week, today’s IPO GMP is trending downwards and is anticipated to decline further. The minimum GMP stands at ₹25, while the maximum GMP reaches ₹40, as per the experts at investorgain.com.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.