Aris Infra, a technology-driven construction material procurement platform, is looking to raise Rs 600-700 crore through an initial public offering (IPO).
The Mumbai-based company is backed by high-net-worth individuals (HNIs) and family offices such as PharmEasy CEO Siddharth Shah, San Francisco-based Think Investments, and partners from private equity firms such as TPG Capital, Temasek, and BlackRock.
Aris Infra plans to file a draft prospectus with the market regulator early next month, senior company executives told ET.
They said the IPO will involve entirely new shares being issued as existing shareholders have chosen to retain their current stakes.
Promoters and families currently have a 65-70% stake in Aris Infra. Think Investments owns 8.5%, and HNIs such as Kedar Mankekar and Prashant Singh family offices hold 14% and 7% stakes respectively.
Started in February 2021 by Ronak Morbia and Bhavik Khara, Aris Infra leverages AI and machine learning to streamline procurement of construction materials, connecting customers like property developers and vendors through its platform, digitising the overall supply chain of the construction industry.
So far, the company has raised Rs 160 crore in equity and an equal sum in debt, with the last funding round in January 2022 valuing the company at about $100 million.
“The industry is a multi-million-dollar market, but we realised that it is largely unorganised. We knew that the opportunity is large and a majority of this is a combination of raw materials which are steel, cement, aggregates, chemicals,” said cofounder Morbia.
The company counts Tata group, JSW, UltraTech Cement, ACC, Dalmia, Godrej, L&T, Apco Infra, SP Singla Constructions, and Lafarge among its vendors and customers.
In 2022, Aris Infra acquired Unitern, a real estate advisory firm, and elevated its chairman Srinivas Gopalan as CEO.
“There is significant growth potential in this industry. Given the government’s spending and the way the real estate market is moving, we have not even scratched the surface. All our investors feel that this is an opportune time for us to go public and to remain in the company and grow with it,” Gopalan said.
In FY24, Aris Infra recorded a revenue of Rs 700 crore and earnings before interest, tax, depreciation, and amortisation (Ebitda) of Rs 40 crore, maintaining profitability since inception.
JM Financial, IIFL Securities, and Nuvama are the booking running lead managers to the IPO.
Other companies in the construction goods and services sector include Infra.Market, Yojak, Mistry Store, Build Supply, and Material Depot.
