Aris Infra, a construction material procurement platform, has submitted a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India with plans to raise up to Rs 600 crore through an initial public offering (IPO). The IPO will consist entirely of newly issued shares, with no existing investors selling their holdings.
Based in Mumbai, Aris Infra is supported by prominent individuals and family offices, including the CEO of PharmEasy, Siddharth Shah, San Francisco-based Think Investments, and partners from private equity firms such as TPG Capital and BlackRock.
Aris Infra plans to use the funds from the IPO to repay and prepay outstanding borrowings, support its working capital needs, and invest in its subsidiary, Buildmex-Infra Pvt Ltd, for its working capital requirements. The company also intends to purchase partial shareholdings from existing shareholders of its subsidiary, ArisUnitern Re Solutions, while allocating funds for general corporate purposes and potential acquisitions.
Founded in February 2021 by Ronak Morbia and Bhavik Khara, Aris Infra utilizes artificial intelligence and machine learning to optimize the procurement of construction materials. The platform connects property developers and vendors, digitizing the supply chain within the construction industry.
To date, the company has secured Rs 160 crore in equity and an equivalent amount in debt. Its most recent funding round in January 2022 valued the company at approximately $100 million.
Aris Infra’s clientele includes major companies such as the Tata Group, JSW, UltraTech Cement, ACC, Dalmia, Godrej, Larsen & Toubro, Apco Infra, SP Singla Constructions, and Lafarge. JM Financial, IIFL Securities, and Nuvama Wealth Management are serving as the book-running lead managers for the proposed issue.
