Infra.Market founders take on debt to pump more cash into firm as IPO plans slow

“As things stand, the promoters are injecting more cash into Infra.Market through Silverline by taking on personal debt,” one of the persons said on the condition of anonymity. “They are also asking existing investors to participate in this equity raise as the much-needed IPO liquidity is still quite far away.”

The promoter-backed infusion underscores the pressure building across India’s pre-IPO cohort. With leverage high and cash flows still negative, companies are being forced to shore up balance sheets, often through insider capital, before testing public market appetite.

“Even after multiple fundraises and a recent debt raise, the promoters are pledging their existing shares to take a personal loan. Then they are putting that money back into the company. This creates a ‘house of cards’ scenario where any drop in the value of their equity holding might then trigger a margin call by the lenders,” a second person aware of the developments said.

A third person close to the company confirmed the promoter financing. “Current PE investors are helping the co-founders connect with credit providers to help with the promoter financing, which will be done against the promoters’ stake in company.” This person added that the fresh fundraise was likely being done at a flat valuation again.

None of the three people commented on the amount being injected or the identity of the credit providers.

An email sent to Infra.Market on 17 April seeking comment remained unanswered at the time of publication.

Other than co-founders Aaditya Sharda and Souvik Sengupta, Infra.Market’s backers include Tiger Global Management, Accel India and Nexus Venture Partners. As of March 2026, Sharda and Sengupta held a cumulative 20.4% stake in the company, according to data from Tracxn. Tiger Global held 20.1%, Accel 14.7% and Nexus 7.3%.

Infra.Market received approval from the Securities and Exchange Board of India (Sebi) in January to proceed with a potential ₹5,000 crore IPO comprising fresh shares and an offer for sale by investors.

In early 2025, the company raised $121 million (around ₹1,050 crore) in a pre-IPO round at a valuation of $2.8 billion (about ₹24,000 crore). This was followed by a Series G equity raise of ₹860 crore in September and November 2025 at a flat valuation, according to Tracxn.

In February 2026, the building materials platform initiated a ₹1,250 crore debt raise from private credit firm Ascertis Credit to refinance existing borrowings. The refinancing did not materially alter its leverage profile.

Leverage watch

According to the third person quoted above, the promoter financing is aimed at improving the company’s debt-to-equity ratio — a key metric reflecting the extent to which operations are funded by borrowings versus owned capital.

Infra.Market’s debt-to-tangible net worth ratio stood at 1.77x as of March 2026, according to Acuité Ratings & Research. While not identical to the debt-to-equity ratio, the metric excludes intangible assets and is considered more conservative.

A ratio of 1.77x indicates that the company relies more heavily on debt than equity, increasing financial risk.

In FY25, Infra.Market’s current liabilities rose 54% year-on-year to ₹2,760 crore from ₹1,788 crore. Financial liabilities nearly doubled to ₹2,149 crore from ₹1,101 crore. Consolidated free cash flow remained negative, widening from negative ₹177 crore in FY24 to negative ₹862 crore in FY25.

Despite a high debt leverage, Infra.Market did register a 22% year-on-year growth in its top line in fiscal 2025, which came up to ₹6,053 crore as opposed to the previous year's ₹4,969 crore.

For the same period, the firm also saw its earnings before interest, taxes, depreciation, and amortisation rise to ₹587 crore from ₹418 crore, translating to a 40% growth. Ebitda margin against sales jumped over 100 basis points to 9.7% versus 8.4% a year ago.

Profit, however, was squeezed by nearly 60% to ₹133 crore against the previous year's ₹317 crore. This was mainly because of an impairment of ₹100 crore that the company recognised in its subsidiary in the 2025 fiscal.

IPO pushed back

As per the Acuité report, Infra.Market had proposed raising funds through its IPO by Q2FY27 (July 2026). That timeline now appears increasingly uncertain as the company reassesses market appetite amid volatile conditions.

The company is targeting an updated filing by June-end or July with March quarter financials, the third person said.

“The firm has pushed back any preliminary meetings with potential investors for its IPO, as most of these investors are looking for cheap entry points into the company amid heightened scrutiny,” the first person cited above said.

News outlet The Morning Context had reported on 4 March how the company's debt raise right before an IPO raised questions about the company's cash flows and Sebi's role in scrutinizing the offer.

“Given the global uncertainty, no mutual fund wants to enter at the $2.8 billion valuation mark, especially amid a debt raise and more equity funding,” the second person added. “Early demands for discounts are as steep as 35%.”

Infra.Market is not alone. Volatile markets and slowing capital flows amid the US-Iran war have forced several companies to recalibrate IPO plans. Mint reported on 25 March that global uncertainty had put about ₹18,000 crore of planned fundraising at risk.

“Historically, the liquidity of the group has been stretched [...] and debt servicing was managed through debt raise and refinancing,” the report said.

With equity infusion of over ₹800 crore till February and refinancing of ₹750 crore in FY26, Acuité expects the group’s liquidity to remain adequate over the medium term.

Agnidev Bhattacharya

Agnidev is a business journalist with over two years of reporting experience tracking the intersection of capital, policy, and corporate strategy in India.He joined Mint in December 2025, after a stint at NDTV Profit (erstwhile BQ Prime). At Mint, Agnidev focuses on the high-stakes world of the Indian capital market, specialising in mergers and acquisitions, burgeoning IPOs, and the investment banking industry.Backed by a rigorous, data-driven approach, Agnidev frequently breaks news on the valuation cycles, deal pipelines and listing strategies of India’s most prominent companies. His reportage offers deep dives into the operational health of market leaders across the corporate landscape, providing readers with a clear-eyed view of institutional growth.He has reported on major issues like India's derivatives frenzy, IPO froth, the competitive quick commerce industry, the real-money gaming ban, and has broken investigative stories related to scandals such as IndusInd Bank's accounting manipulation and the Gensol-BluSmart fiasco.As a reporter, he brings stories that ultimately affect your stock market investments, and tries to bring clarity and brevity in a field that is often filled with jargon and noise.