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Economic Times
3 days ago
- Business
- Economic Times
IPO-bound Infra Market raises additional $50 million financing from Mars Growth Capital
Construction materials marketplace has raised an additional $50 million in debt financing from Mars Growth Capital, as it looks to fund expansion plans before a public listing. The infusion takes the total amount raised from the lender to $150 million. The latest financing from Mars Growth Capital, a joint venture between MUFG Bank and private credit firm Liquidity Group, also includes a five-year extension of the terms on its existing $100 million borrowing. The company said it will use the fresh capital to support its expansion plans and strengthen its presence across product categories and geographies. It currently offers over 15 product categories, including concrete, walling solutions, and steel, and operates a network of 250 manufacturing units. It has 10,000 retail touchpoints. This is second fundraise this year. In January, the company raised $125 million in a funding round to fuel expansion across India and global markets. Founded in 2016 by Souvik Sengupta and Aditya Sharda, Accel-backed supplies construction and home improvement materials, including concrete, steel, pipes, plywood, fans, lights, and kitchen and electrical appliances to real estate developers, contractors and architects. 'We continue to build on our vision of creating India's largest building materials platform, offering end-to-end solutions across the construction value chain, not only in India, but also globally,' Sengupta said in a statement. 'We are seeing growth opportunities as we rapidly expand our market presence, and create a best-in-class construction materials company out of India.' The funding comes at a time when the Mumbai-based company is preparing to file its draft red herring prospectus (DRHP) with the aim of raising Rs 2,500 crore through an initial public offering (IPO) this fiscal year. The company has already appointed merchant bankers and legal advisors and aims to go public in the third or fourth quarter of FY26, subject to regulatory approvals. In May, rating agency India Ratings downgraded rating to 'BBB+/negative outlook' from 'A-/negative outlook' over concerns around its debt refinancing, liquidity position and negative cash flow from operations in FY25. In FY25, Hella Infra Market, the parent company of reported a 45% jump in earnings before interest, taxes, depreciation and amortisation (Ebitda) to Rs 1,596 crore, with margins improving to 8.7% from 7.5% a year ago. Profit after tax rose to Rs 492 crore from Rs 378 claims to be the second-largest player by revenue in ready-mix concrete and among the top three in AAC blocks and tiles by capacity in India. It has also made strategic investments in brands such as RDC Concrete, Shalimar Paints, Emcer, Millennium Tiles, and company is among a growing list of industrial commerce platforms preparing for a public market debut. Others include Zetwerk, Ofbusiness, and JSW Luxe FinBrokers advised on the latest transaction.'This $150 million potential commitment reflects our conviction in vision and execution, as well as the transformative impact it is having across the construction value chain,' said Ron Daniel, cofounder and CEO of Liquidity Group. 'By combining Liquidity's technology-driven approach and underwriting capabilities with scale and ambition, we are enabling sustainable growth and supporting emergence as a global infrastructure leader.'
Mint
3 days ago
- Business
- Mint
Infra.Market secures additional $50 mn from MARS Growth Capital; to file draft IPO papers by September
Mumbai: MARS Growth Capital has infused an additional $50 million in and extended the term of its existing financing of $100 million by five years as the building materials platform prepares for an initial public offering later this year. MARS, a joint venture between private credit firm Liquidity and MUFG Bank, has invested about $150 million in the IPO-bound company with this transaction, said in a statement on Monday. The first tranche of $100 million, which had a three-year tenure starting in 2022, was predominantly used towards making paints and tiles. The additional proceeds will be used to manufacture concrete and autoclaved aerated concrete blocks. Northcote Luxe FinBrokers was the exclusive advisor to for the transaction. This is the company's second fundraising effort this year after it secured about $125 million at a $2.7 billion valuation from investors including Tiger Global, Evolvence, and Foundamental in January. Investors Ashish Kacholia, Nikhil Kamath, and Abhijit Pai also participated in the round. Mint reported in April that venture debt backers – Innoven Capital, Strides Ventures and Trifecta Capital – are exploring a $30 million secondary transaction in an extended pre-IPO round as they look to encash some of their stake. The company is expected to file draft IPO papers by September and has appointed Kotak Mahindra Capital, IIFL Capital, Goldman Sachs, Jefferies, ICICI Securities, HSBC Securities,Motilal Oswal Financial Services, and Nuvama Wealth Management, to manage its IPO. Founded by Souvik Sengupta and Aaditya Sharda in 2016, the company offers solutions across the construction value chain. It has a network of over 250 manufacturing units with strategic investments in companies including RDC Concrete, Shalimar Paints, Emcer, Millennium Tiles, and Amstrad. It sells a range of products including concrete, walling solutions, steel, aggregates, pipes & fittings, plywood, laminates, tiles, paints, modular kitchens, designer hardware, electricals, appliances and consumer durables. With over 10,000 retail outlets across India, caters to institutional customers as well as retail outlets in the building materials sector and aims to disrupt the $255 billion building materials market with a focus on the infrastructure, industrial and construction sector. The company highlighted plans in February to move beyond concrete and steel and focus on lifestyle categories such as mattresses, curtains, and home décor. Its lifestyle brand, Ivas, offers materials that go "outside the wall" in home construction like bath fittings, ceramics, tiles, paints, home appliances and consumer durables. growth has accelerated as geopolitical shifts and inflationary pressures prompt companies to relocate manufacturing to India. This momentum has been bolstered by the Indian government's infrastructure push and initiatives like the production-linked incentive scheme and the 'China-plus one" strategy. The company reported revenue of ₹ 14,530 crore in FY24, up from ₹ 11,846.5 crore the previous year, while its profit after tax surged to ₹ 378 crore from ₹ 155 crore in FY23. Much of this growth came from private labels in categories like concrete, walling products, paint, electricals and tiles.
Time of India
3 days ago
- Business
- Time of India
India Ratings downgrades Infra.Market; company plans to raise Rs 2,500 crore via IPO
ETtech Academy Empower your mind, elevate your skills IPO-bound has been downgraded by India Ratings from A-/Negative Outlook to BBB+/Negative Outlook, citing concerns around debt refinancing, liquidity pressures, and negative cash flow from operations in downgrade comes as the construction materials marketplace plans to file its draft red herring prospectus (DRHP) this month to raise Rs 2,500 crore via an initial public offering. The company has appointed merchant bankers and legal advisors and is targeting a listing in the third or fourth quarter of FY26, subject to regulatory a note to investors and lenders in May, argued that its improving financials, recent equity infusions, and upcoming liquidity events including the IPO had not been fully factored in by the rating agency.'The company has focused on prudent growth over the years. Even though debt has increased in line with business ramp-up and expansion into manufacturing, leverage and gearing metrics have been improving,' it did not respond to ET's query till press time Ratings flagged the company's reliance on refinancing to meet repayment obligations, including Rs 1,600 crore due in FY26. noted it has tied up Rs 1,153 crore through binding agreements, structured as 36-month bullet repayments to ease near-term company reported available liquidity of Rs 1,810 crore, comprising Rs 971 crore in cash and equivalents and Rs 839 crore in undrawn credit lines. India Ratings also raised concerns over stretched receivables at Singapore subsidiary, where receivable days rose to 215 in FY25 from 142 in FY24, while revenue declined amid global tariff Acuité Ratings assigned an A-/Stable rating, highlighting strong revenue growth, equity infusions, and refinancing progress, but flagged high debt and working capital FY25, Ebitda rose 45% to Rs 1,596 crore, with margins improving to 8.7% from 7.5% the previous year. Profit after tax increased to Rs 492 crore from Rs 378 crore. However, cash flow from operations turned negative at (-)Rs 140 crore in FY25, compared to Rs 467 crore in FY24, due to election-related labour shortages and weaker export in 2016 by Souvik Sengupta and Aditya Sharda, Accel-backed supplies construction and home improvement materials to large developers and joins peers such as Zetwerk JSW One Platforms , and OfBusiness in preparing for public listings.
