Aris Infra Solutions Limited (ASL) is set to open its Initial Public Offering (IPO) on Wednesday, June 18, 2025. This IPO is anticipated to raise ₹499.59 crore through the sale of equity shares. The bidding for anchor investors will commence a day earlier, on Tuesday, June 17, 2025.
The IPO will be available for subscription until Friday, June 20, 2025. Bidders can apply for a minimum of 67 equity shares, and they must bid in multiples of 67 shares thereafter. The price range for the shares is set between ₹210 and ₹222 each. The total issue size is ₹4,995.96 million, which includes only fresh issue shares.
The funds raised from this IPO will be used for several purposes. The company plans to allocate approximately ₹2,046 million to repay or prepay certain existing borrowings. Additionally, around ₹1,770 million will be used to meet operational capital requirements. There is also a provision of ₹480 million aimed at funding the operational capital needs of its subsidiary, Buildmax-Infrastructure Private Limited.
The company may utilize up to ₹600 million for general corporate purposes and unidentified inorganic acquisitions. However, the amount allocated for these purposes will not exceed 25% of the total funds raised through this issue. The equity shares will be offered through a Red Herring Prospectus filed with the Registrar of Companies in Maharashtra on June 11, 2025.
The National Stock Exchange (NSE) will serve as the designated stock market for this issue. The IPO is being conducted in accordance with the SEBI ICDR Regulations and will be a book-building process. At least 75% of the offer is reserved for Qualified Institutional Buyers (QIBs), and the company can allocate up to 60% of the QIB portion to anchor investors based on discussions with the book-running lead managers.
In the case of under-subscription or non-allocation in the anchor investor portion, the remaining equity shares will be added to the QIB category. Furthermore, 5% of the net QIB portion will be available specifically for mutual funds, while the remaining portion will be available for all QIB bidders, excluding anchor investors.
The IPO also allows for at least 15% of the non-institutional bidders (NIBs) to participate. A specific portion will be reserved for applicants with application sizes between ₹200,000 and ₹1,000,000, as well as for those with sizes exceeding ₹1,000,000.
All bidders, excluding anchor investors, are required to participate through the Application Supported by Blocked Amount (ASBA) process. This includes providing details of their ASBA accounts, which will block the relevant bid amount. Anchor investors are not allowed to participate through the ASBA process.
The book-running lead managers for this issue are JM Financial Limited, IIFL Capital Services Limited, and Nuvama Wealth Management Limited. This IPO marks an important step for Aris Infra Solutions Limited as it seeks to expand its operations and strengthen its financial position in the market.
With a growing interest in public offerings in India, this IPO is expected to attract significant attention from investors looking for opportunities in the infrastructure sector. As the date approaches, potential investors are encouraged to conduct thorough research and consider their investment strategies carefully.
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