Arunaya Organics Limited is engaged in both trading and manufacturing of dyes and dye intermediates, serving industries like textiles and paper. The company offers a wide product portfolio including reactive, acid, direct, basic, and solvent dyes. Their products are manufactured in multiple forms such as spray-dried powders, granules, crude, reverse osmosis-treated, and salt-free variants.

In addition to dyes, the company also supplies specialty performance chemicals tailored for textile dyeing and the paper industry, catering to a wide industrial base.

IPO Details and Issue Structure

Arunaya Organics Limited is launching a Book Built Issue of ₹33.99 Crores, consisting of:

• A Fresh Issue of 52.6 lakh shares aggregating to ₹30.50 Crores

• An Offer for Sale (OFS) of 6 lakh shares worth ₹3.48 Crores

The IPO opens on April 29, 2025, and closes on May 2, 2025. The allotment will be finalized on May 5, 2025, and the company is expected to be listed on NSE SME on May 7, 2025.

The price band is set at ₹55 to ₹58 per equity share. At the upper band, the market capitalisation is ₹101.72 Crores.

IPO Lot Size and Investment Details

The lot size is 2,000 shares.

• Minimum investment for retail investors is ₹1,16,000 (1 lot)

• HNIs must apply for at least 2 lots (₹2,32,000)

UNISTONE CAPITAL PRIVATE LIMITED is the Book Running Lead Manager (BRLM).
BIGSHARE SERVICES PRIVATE LIMITED is the Registrar for the issue.
R.K. Stockholding Private Limited is the Market Maker.

Grey Market Premium (GMP) and Listing Expectation

The GMP of Arunaya Organics IPO is ₹8 as of April 25, 2025, which translates into an expected listing price of ₹66, a 13.8% premium over the issue price of ₹58.

However, it is important to note that the Grey Market Premium is unofficial, and actual listing prices may vary based on demand-supply dynamics at listing.

Day-wise GMP Trend

Financial Performance Overview

Arunaya Organics has reported a steady growth in both revenues and profitability over the past three financial years.

Despite the dip in FY24 revenues, the EBITDA margins and net profit improved significantly, reflecting better operational efficiency.

Key Financial Ratios and Valuation Metrics

• Pre-issue EPS: ₹3.95

• Post-issue EPS: ₹2.31

• Pre-issue P/E: 14.68x

• Post-issue P/E: 25.07x

• Industry P/E: 77x

• ROCE (FY24): 36.27%

• ROE (FY24): 44.15%

• RoNW: 55.71%

• Annualised EPS: ₹4.12

• Annualised P/E: 14.07x

The valuation appears reasonable when compared with the industry average P/E, suggesting that the IPO is fairly priced for listing gains.

Objectives of the IPO

The company aims to utilise the net proceeds of the IPO as follows:

1. ₹1,178.95 Lakh – For setting up a new manufacturing facility at Dahej III Industrial Estate, Bharuch, Gujarat

2. ₹900.00 Lakh – For working capital requirements

3. Remaining – For general corporate purposes

Promoter and Management Background

The company is promoted by Mr. Vinod Agrawal, a first-generation entrepreneur with deep expertise in the dyes industry. He is supported by a competent and experienced team of Key Managerial Personnel across operations, finance, and manufacturing.

IPO Subscription Status (Live from April 29)

The subscription window will open on April 29, 2025, and the live status will be updated across retail, HNI, and QIB categories. Stay tuned for daily updates.

How to Check Allotment Status

The IPO allotment will be declared on May 5, 2025. Investors can check allotment status by following these steps:

1. Visit the Registrar website (BIGSHARE SERVICES PRIVATE LIMITED)

2. Select Arunaya Organics IPO from the dropdown

3. Enter PAN/Application Number/DP ID

4. Click Submit to view allotment status

IPO Recommendation

Based on the company’s financial performance, reasonable valuation, and 13.8% GMP, risk-tolerant investors can consider applying to Arunaya Organics IPO for listing gains.

However, due to it being an SME IPO with relatively low liquidity and higher volatility, investors should evaluate their risk profile before investing.

Disclaimer
The information provided here is for educational purposes only and is not financial advice. Please consult with a SEBI-registered advisor before making any investment decisions. Investments in the securities market are subject to market risks.

About the Author
CA Abhay Kumar (Abhay Varn) is a SEBI Registered Research Analyst (INH300008465) and a qualified Chartered Accountant with over 8 years of experience in the stock market. He regularly publishes IPO research reports and market insights at abhayvarn.com.

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