ArisInfra Solutions Share Price Crashes 22% on Market Debut - What Went Wrong with the IPO?

The shares of ArisInfra Solutions were trading at Rs 176.95 apiece, which is 15.38% down as compared to the previous close, at 3:06 pm on Wednesday.

The stock recently made a weak debut in the Indian stock market today and the shares declined over 22% from its issue price on Wednesday after listing at a discount.

ArisInfra Solutions IPO: Discounted Shares

The shares of ArisInfra Solutions were listed at Rs 205 apiece on the NSE, a discount of 7.66% from its issue price of Rs 222. The stock was listed at a 5.81% discount at Rs 209.10 apiece, on the BSE.

After the weak listing, the pressure of selling intensified, which dragged the stock price down to Rs 172.65 on the BSE, registering a decline of 22.23% as compared to the issue price.

ArisInfra Solutions IPO: Subscription Status

The initial public offering of ArisInfra Solutions was subscribed 2.65 times in total. retail investors segment was booked 5.59 times, the Non Institutional Investors (NII) portion was subscribed 3.14 times, and the Qualified Institutional Buyers (QIBs) segment was booked 1.42 times.

ArisInfra Solutions is a B2B technology-enabled company which focuses on simplifying and digitising the procurement process for construction materials.

ArisInfra Solutions IPO: Details

The stock's debut price also missed the grey market estimates before its listing, the unlisted shares of the company were trading flat with zero grey market premium (GMP) over its IPO price at Rs 222 in the grey market, as per Investorgain.

The company had launched its IPO to raise up to Rs 500 crore through a fresh issue of equity shares, and no offer for sale (OFS) component, at a price band of Rs 210-222 per share. Investors could apply for a minimum of 67 shares, and in multiples thereafter.

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