Construction materials supplier Arisinfra Solutions has received approval from the capital markets regulator SEBI to launch its initial public offering. It plans to raise Rs 579.6 crore through IPO. The issue size has been reduced a bit from Rs 600 crore mentioned in the draft papers filed on August 12 this year.
The Mumbai-based company has received observation letter for its IPO papers from the SEBI on November 13. The receipt of observation letter means the company can go ahead with IPO plan within one year.
It may raise Rs 115.92 crore before the launch of its initial share sale. If the said pre-IPO placement is undertaken, such amount will be reduced from the fresh issue size.
The IPO comprises solely fresh issue with no offer-for-sale component.
Arisinfra, which operates in construction materials market, will utilise Rs 204.6 crore out of the net issue proceeds for repaying debt, Rs 225 crore for working capital requirements, and the remainder funds for general corporate purposes and inorganic acquisitions.
The company leverages its extensive network of vendors to source construction materials and provide them to real estate and infrastructure developers and contractors.
Promoters own 55.97 percent stake in the company and the remaining 44.03 percent shares are held by public shareholders.
JM Financial, IIFL Securities, and Nuvama Wealth Management are acting as the merchant bankers for the issue.
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