Is Arisinfra Set for Success Despite a Widening Net Loss of Rs 17.3 Crore?
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Synopsis
As Arisinfra Solutions Limited prepares to launch its IPO amidst growing financial losses, questions arise about its market entry strategy. With a net loss expanding to Rs 17.3 crore in FY24, will the company attract investor confidence or face challenges ahead?
Key Takeaways
- Net loss of Rs 17.3 crore in FY24
- Total income fell by 6.9% YoY
- IPO aims to raise Rs 500 crore
- Price band set between Rs 210 - Rs 222
- Only 10% for retail investors
Mumbai, June 17 (NationPress) Arisinfra Solutions Limited, a provider of procurement solutions tailored for infrastructure and construction sectors, is poised to initiate its initial public offering (IPO) on June 18, aiming to secure nearly Rs 500 crore from the primary market.
However, the timing of this market entry raises eyebrows, as the company’s financial indicators reveal challenges. Per its draft red herring prospectus (DRHP), in the financial year 2023-24 (FY24), Arisinfra Solutions recorded a net loss of Rs 17.3 crore, an increase from a loss of Rs 15.39 crore in FY23.
Moreover, the company's total income experienced a decline of 6.9 percent year-on-year (YoY), decreasing from Rs 754.44 crore in the previous fiscal (FY23) to Rs 702.36 crore.
Despite these annual losses, there’s a silver lining: the company reported a net profit of Rs 6.53 crore with revenue of Rs 557.76 crore during the first nine months of FY24, as of December 31, 2024.
The IPO, valued at Rs 499.6 crore, will consist solely of a fresh issue of 2.25 crore shares.
The price range for the IPO is set between Rs 210 and Rs 222 per share. The offering will conclude on June 20, with allotments anticipated on June 23 and listing earmarked for June 25 on both the NSE and BSE.
The grey market premium (GMP) for the IPO stood at Rs 25 as of June 17, indicating a potential listing price around Rs 247, approximately 11 percent above the upper limit of the price band.
Retail investors can participate with a minimum lot size of 67 shares, costing Rs 14,874. The issue has allocated 75 percent for Qualified Institutional Buyers (QIBs), 15 percent for Non-Institutional Investors (NIIs), and just 10 percent for retail investors.
With operations extending across 18 states in India, the company aims to utilize the IPO proceeds for enhancing working capital, repaying debts, and other general corporate needs.
The lead managers of the IPO include JM Financial, IIFL Capital Services, and Nuvama Wealth Management, while MUFG Intime India serves as the registrar.
Point of View
It is essential to remain objective while analyzing Arisinfra Solutions Limited. While the widening net loss raises concerns, the company’s potential for recovery and future profitability cannot be overlooked. Investors should weigh these factors carefully before making decisions.
NationPress
17/06/2025
Frequently Asked Questions
What is the IPO price band for Arisinfra Solutions?
The IPO price band is set between Rs 210 and Rs 222 per share.
When will the IPO allotment occur?
The allotment for the IPO is expected on June 23.
How much capital is Arisinfra aiming to raise?
Arisinfra aims to raise nearly Rs 500 crore through its IPO.
What percentage of the IPO is reserved for retail investors?
Only 10 percent of the IPO is reserved for retail investors.
How has the company's total income changed?
The company's total income has decreased by 6.9 percent YoY, falling to Rs 702.36 crore.
