Nearly seven months after receiving the SEBI’s green light, B2B ecommerce company ArisInfra has filed its red herring prospectus (RHP) to raise about INR 500 Cr from the public markets.
The company’s IPO will consist solely of a fresh issue component via which it will be raising INR 499.6 Cr. The PharmEasy-backed company had filed its draft red herring prospectus (DRHP) in August 2024 to raise INR 600 Cr via the IPO. The IPO size was later reduced to INR 579.6 Cr.
The company also raised INR 80 Cr in a pre-IPO placement round earlier this year. It issued over 36 Lakh equity shares for INR 222 apiece to investors, including Columbus Fin Vest’s director Vanaja Sundar Iyer and Param Capital Group’s founder Mukul Mahavir Agrawal, among others.
ArisInfra’s IPO will open for subscription on June 18 and close on June 20. Post this, the company’s shares will debut on the BSE and the NSE.
The company intends to use the IPO proceeds for the following:
Repayment Of Debt: The company will use INR 204.6 Cr from the total proceeds to repay outstanding borrowings. At the end of FY25, ArisInfra’s total debt stood at INR 336.6 Cr. As per the RHP, the company secured a debt of INR 200 Cr from its promoter group, Priyanka Medical Pvt Ltd (PMPL) in 2021 at 12% per annum. PMPL is promoted by the parents of PharmEasy’s founder Siddharth Shah.
Meet Working Capital Needs: ArisInfra plans to utilise INR 177 Cr to fund its working capital requirements.
Buildmex-Infra Investment: The company will invest INR 47.8 Cr in its subsidiary Buildmex-Infra Pvt Ltd to fund its working capital needs.
General Corporate Purposes: About INR 70 Cr has been reserved for general corporate purposes and unidentified inorganic acquisition. From this, the company plans to use not more than INR 60 Cr for acquisitions.
ArisInfra’s PharmEasy Connection
Founded in 2021 by Ronak Morbia and Bhavik Khara, ArisInfra is a B2B construction material procurement platform that supplies building materials like ready-mix concrete, steel, cement, and construction chemicals, among others, to real estate and infrastructure developers.
It counts The Wadhwa Group, ACC, Piramal Realty, Tata Projects, and JSW Cements among its clients.
Morbia serves as the chairman and MD of the startup that is promoted by PharmEasy founder Siddharth Shah, his family office and kin.
Shah’s family trust, Aspire Family Trust, is the largest shareholder in the company, with an 11.99% stake, while Morbia and Khara hold 11.01% and 7.56% stakes in the company, respectively.
Meanwhile, Khara’s wife and Siddharth Shah’s sister Priyanka Shah’s family trust holds an additional 7.3% stake in the company.
The company is helmed by ex-Wadhwa Group COO Srinivasan Gopalan, who is also the CEO of the company. The founders oversee the tech, business strategy and day-to-day operations of ArisInfra, as per its RHP.
ArisInfra turned profitable in the nine months of FY25, reporting a profit of INR 6.5 Cr as against a loss of INR 17.3 Cr in FY24. The company’s operating revenue for the period stood at INR 557.8 Cr against an operating revenue of INR 702.4 Cr in FY24.
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