ArisInfra Files RHP to Raise INR 500 Crore via IPO, Eyes Debt Repayment and Expansion
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ArisInfra, a B2B ecommerce firm operating in the infrastructure supply chain sector, has filed its red herring prospectus (RHP) to raise INR 499.6 crore through an initial public offering, nearly seven months after receiving regulatory approval from SEBI. The IPO, which comprises only a fresh issue of shares, will open for subscription on June 18 and close on June 20, according to the company's filings.
The PharmEasy-backed company had originally planned to raise INR 600 crore through the IPO when it filed its draft red herring prospectus (DRHP) in August 2024. However, the size was later revised to INR 579.6 crore and eventually reduced further to the current INR 499.6 crore. Ahead of the public issue, ArisInfra raised INR 80 crore in a pre-IPO placement round by allotting over 36 lakh equity shares at INR 222 per share. Investors in this round included Columbus Fin Vest's director Vanaja Sundar Iyer and Param Capital Group founder Mukul Mahavir Agrawal.
The proceeds from the IPO will primarily be used to improve ArisInfra's balance sheet and support business operations. The company plans to allocate INR 204.6 crore towards debt repayment. According to the RHP, ArisInfra's total debt stood at INR 336.6 crore as of the end of FY25. A substantial portion of this debt—INR 200 crore—was secured in 2021 from Priyanka Medical Pvt Ltd (PMPL), which is part of the promoter group and is backed by the parents of PharmEasy founder Siddharth Shah. The loan carries an interest rate of 12 per cent per annum.
Another INR 177 crore from the IPO proceeds will go towards meeting working capital needs, reflecting the company's continued push to scale operations. Additionally, INR 47.8 crore will be invested in Buildmex-Infra Pvt Ltd, a subsidiary of ArisInfra, to support its own working capital requirements. The remaining INR 70 crore has been earmarked for general corporate purposes and potential acquisitions. However, the RHP specifies that not more than INR 60 crore will be used for any inorganic growth initiatives.
Following the close of the subscription window, ArisInfra is set to list its equity shares on both the BSE and NSE.
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