IPO-bound Arisinfra's net loss widens to Rs 17.3 crore, revenue drops nearly 7 pc in FY24

IANS June 17, 2025 313 views

Arisinfra Solutions is launching its Rs 500 crore IPO despite posting a wider net loss of Rs 17.3 crore in FY24. The company's revenue declined nearly 7% year-on-year, though it showed profitability in the first nine months of the fiscal year. The IPO price band is set at Rs 210-222 per share, with grey market activity suggesting an 11% premium. Proceeds will be used for working capital, debt repayment, and corporate purposes.

"The company turned profitable in the first nine months of FY24 with Rs 6.53 crore net profit" - DRHP Filing
Mumbai, June 17: Arisinfra Solutions Limited, a company that provides procurement solutions for infrastructure and construction firms, is launching its initial public offering (IPO) on June 18 to raise nearly Rs 500 crore from the primary market.

Key Points

1

FY24 net loss widened to Rs 17.3 crore from Rs 15.39 crore

2

Revenue fell 6.9% YoY to Rs 702.36 crore

3

Grey market hints at 11% listing premium

4

IPO proceeds to fund working capital and debt repayment

However, the company is entering the market at a time when its financial performance has shown signs of stress. According to its draft red herring prospectus (DRHP), in the financial year 2023-24 (FY24), Arisinfra Solutions posted a net loss of Rs 17.3 crore, widening from a loss of Rs 15.39 crore in FY23.

The company's total income also declined 6.9 per cent year-on-year (YoY), falling to Rs 702.36 crore from Rs 754.44 crore in the previous fiscal (FY23).

Despite the full-year losses, the company turned profitable in the first nine months of FY24, reporting a net profit of Rs 6.53 crore on a revenue of Rs 557.76 crore as of December 31, 2024.

Arisinfra Solutions’ IPO is a book-built issue worth Rs 499.6 crore, consisting entirely of a fresh issue of 2.25 crore shares.

The price band for the IPO is set between Rs 210 and Rs 222 per share. The IPO will close on June 20, with allotment expected on June 23 and listing scheduled for June 25 on both NSE and BSE.

The grey market premium (GMP) for the issue stood at Rs 25 as of June 17 -- suggesting a potential listing price of around Rs 247, which is about 11 per cent higher than the upper end of the price band.

Retail investors can apply for a minimum lot size of 67 shares, costing Rs 14,874. The issue has been structured with 75 per cent reserved for Qualified Institutional Buyers (QIBs), 15 per cent for Non-Institutional Investors (NIIs), and only 10 per cent for retail investors.

The company has operations across 18 states in India and plans to use the IPO proceeds to fund working capital, repay debt and for general corporate purposes.

JM Financial, IIFL Capital Services, and Nuvama Wealth Management are the lead managers of the IPO, while MUFG Intime India is the registrar.

Reader Comments

R
Rajesh K.
Why is a company with widening losses and declining revenue going for IPO? Seems like they just want to use public money to cover their financial troubles. Retail investors should be careful - the 10% allocation shows even they don't have much confidence in small investors.
P
Priya M.
The GMP of ₹25 looks attractive, but remember grey market isn't regulated. Infrastructure sector has potential but need to check their order book and client concentration. Anyone has details on their major clients? 🤔
A
Amit S.
Positive that they turned profitable in last 9 months, but full year loss is concerning. At ₹222 upper band, P/E looks stretched. Maybe wait for listing and see price action before investing. #PlaySafe
S
Sanjana R.
With government's infra push, procurement companies might benefit long-term. But the debt repayment from IPO proceeds is red flag - shows poor financial management. Better IPOs available in market right now.
V
Vikram J.
JM Financial and IIFL backing gives some credibility, but numbers don't lie. 6.9% revenue drop when infra sector is booming? Something doesn't add up. Maybe their margins are under pressure from competition.
N
Neha T.
Minimum investment ₹14,874 is quite high for retail investors compared to other recent IPOs. With only 10% reserved for retail, allotment chances seem slim. Not worth the effort for such a risky bet.

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Tags:
Arisinfra IPO Infrastructure procurement FY24 financial results JM Financial Nuvama Wealth