ArisInfra Solutions IPO subscribed 12% so far on Day 1; Should you subscribe?

ArisInfra Solutions IPO opens to public subscription in primary market. 

ArisInfra Solutions initial public offer (IPO) was subscribed 16 percent so far on the first day of share sale. The nearly Rs 500-crore IPO opened for public subscription on June 18 and will conclude on June 20. The price band has been set at Rs 210 to Rs 222 per share for the public issue.

The category for non-institutional investors received 11 percent subscription while the portion for Retail Individual Investors (RIIs) attracted 73 percent subscription, according to NSE data till 2:30 PM. Earlier, the company raised Rs 225 crore from anchor investors.

The IPO is completely a fresh issue of equity shares worth Rs 499.6 crore with no offer for sale (OFS) component. At the upper end of the price band, the company is valued at nearly Rs 1,800 crore.

Should you subscribe to issue?

Bajaj Broking tagged a 'Buy for Long-Term' rating to the issue.

The company is engaged in technology enabled B2B supplier for construction materials, that has growing market. It enjoys virtual monopoly in the segment and is most preferred

partner in construction activities.

"It posted losses till FY24 and has just turned corner for 9M of FY25. Based on latest working the issue is aggressively priced, and based on working till FY24, the P/E is negative. Well-informed/cash surplus investors may park moderate funds for long term, others may simply stay away from this pricey bet," it added.

ArisInfra Solutions IPO GMP

According to platforms tracking the grey market activities, the shares of Arisinfra Solutions are commanding a 11 percent GMP. Investorgain quoted a GMP of Rs 25 for the shares of the company, indicating a listing gain of 11.26 percent.

ArisInfra Solutions shares will be listed on Wednesday, June 25, while the listing is expected on June 23.

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