On the first day of bidding for the IPO of ArisInfra Solutions, there was an overall subscription rate of 24%, with retail investors at the forefront.

Established in 2021 by Ronak Morbia and Bhavik Khara, ArisInfra serves as a B2B platform for the procurement of construction materials aimed at real estate and infrastructure developers. It provides items like ready-mix concrete, steel, cement, construction chemicals, and more. In addition to the founders, ArisInfra includes Siddharth Shah, founder of PharmEasy, along with his family office and relatives, as part of its promoters and promoter group.

Bids for 24.7 Lakh shares were received in the retail investors’ segment, which had an oversubscription of 1.04X, compared to the 23.7 Lakh shares available.

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NIIs made a bid for 6.9 lakh shares out of the 35.68 lakh shares allocated for them, leading to a subscription rate of 19%.  Nonetheless, the QIBs made a bid for only 10,988 shares, while the available offer was for 71.37 lakh shares.

The IPO of ArisInfra Solutions saw a tepid reaction on its first day of bidding, with subscriptions reaching only 18% by 3 PM that day.

BSE data indicates that the IPO garnered bids for 23.91 lakh shares, while 1.3 crore shares were available.

The segment for retail investors recorded the highest subscription rate of 80%, with bids for 19.72 Lakh shares compared to an offer of 23.79 Lakh shares.

Bids from qualified institutional buyers (QIBs) amounted to just 6,432 shares, while the offer was for 71.37 lakh shares.

NIIs (Non-institutional investors) made bids for 4.4 lakh shares out of the 36.68 lakh shares allocated to them, leading to a subscription rate of 12%.

For its public issue, which consists solely of a fresh issue totaling INR 499.6 Cr., ArisInfra has established a price range of INR 210 to INR 222.  75% of the total offer is designated for QIBs, while NIIs and retail investors have been allocated 15% and 10%, respectively.

The company’s shares are expected to be listed on the stock exchanges on June 25, following the IPO closure on June 20.  The firm is targeting a post-issue implied market capitalization of INR 1,799 Cr (approximately $209 Mn) at the upper price limit of INR 222.

ArisInfra secured funding of INR 224.8 Cr from anchor investors yesterday by allocating 1.01 Cr shares to 15 investors, including Astorne Capital VCC and Niveshaay Hedgehogs Fund, at a share price of INR 222.

A considerable part of the funds raised from the IPO will be allocated for settling outstanding loans. According to the RHP, INR 204.6 Cr of the raised funds will be used to repay a debt obtained from its promoter group entity, Priyanka Medical Pvt Ltd (PMPL), in 2021 at an interest rate of 12% per annum. The parents of Siddharth Shah, the founder of PharmEasy, promote PMPL.