A planned initial public offering (IPO) by Mumbai-based Aris Infra, a business that specializes in technology-driven building material procurement, aims to garner approximately Rs 600-700 crore. Its goals with this move are to increase its market share and streamline its operations even more.
Backing and Investments
Many prominent people and esteemed financial institutions have shown a great deal of interest in and investment in the company. Temasek, BlackRock, TPG Capital, and Think Investments are notable investors. In addition, the business is supported by family offices and high-net-worth individuals (HNIs), including Siddharth Shah, the CEO of PharmEasy.
IPO Details
Senior company executives have confirmed that Aris Infra intends to submit a draft prospectus to the market regulator early in the upcoming month. All of the shares in the IPO will be new, with present shareholders having the option to hang onto their existing positions. Presently, 65-70% of the corporation is owned by promoters and family stakeholders. Think Investments has an 8.5% ownership stake, while family offices of HNIs like Prashant Singh and Kedar Mankekar have 14% and 7%, respectively.
Company Background
Aris Infra, which was founded in February 2021 by Ronak Morbia and Bhavik Khara, uses machine learning and artificial intelligence (AI) to streamline the construction material procurement process. The platform digitizes the supply chain in the construction industry by bringing together vendors and real estate developers. Aris Infra has raised a total of Rs 160 crore in debt and equity to far. The company was valued at about $100 million at the time of its most recent investment round, which took place in January 2022.
Industry Impact
The industry is a multi-million-dollar market, but it is largely unorganized, said co-founder Ronak Morbia. We realized that the opportunity is vast, with a significant portion comprising raw materials like steel, cement, aggregates, and chemicals.
Major firms in the industry, including the Tata Group, JSW, UltraTech Cement, ACC, Dalmia, Godrej, L&T, Apco Infra, SP Singla Constructions, and Lafarge, are among Aris Infra’s clients and vendors. By purchasing Unitern, a real estate advisory business, and elevating its chairman, Srinivas Gopalan, to CEO in 2022, the corporation increased the scope of its operations.
Future Growth
Gopalan emphasized the growth potential within the industry, citing government spending and a burgeoning real estate market. We have not even scratched the surface. Our investors believe this is an opportune time for us to go public and continue growing, he stated. In the fiscal year 2024, Aris Infra reported a revenue of Rs 700 crore and an earnings before interest, tax, depreciation, and amortization (EBITDA) of Rs 40 crore, maintaining profitability since its inception.
IPO Management
The IPO will be managed by JM Financial, IIFL Securities, and Nuvama, who are acting as the booking running lead managers. With the money intended to further advance its technology and broaden its market reach, Aris Infra’s proposed initial public offering (IPO) represents a key milestone in the company’s growth trajectory. The company’s potential to revolutionize the building material procurement business is shown by its exceptional financial performance since conception and the support of reputable investors.
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