Arunaya Organics, a key player in the dye manufacturing and trading industry, is set to launch its IPO with a price band of ₹55 to ₹58 per share. The IPO consists of a fresh issue of 52.6 lakh shares valued at ₹30.50 crore and an offer for sale of 6 lakh shares worth ₹3.48 crore. The subscription period for this IPO will begin on April 29, 2025, and end on May 02, 2025. The shares are expected to be listed on the NSE SME platform on May 07, 2025.

Company Overview
Arunaya Organics is engaged in the manufacturing and trading of a wide variety of dyes, including reactive, acid, direct, basic, and solvent dyes, along with dye intermediates. The company offers products in various forms, including spray-dried powders, granules, and salt-free products. Additionally, they provide specialty chemicals for industries such as paper and textile dyeing. The company’s products are utilized in numerous applications across textiles, paper, and other industries.

IPO Objectives
The net proceeds from the IPO will be used for the following purposes:

1. To set up a new manufacturing facility in Dahej, Gujarat, as part of their proposed Greenfield Project (₹11.79 crore).

2. To fund the working capital requirements of the company (₹9 crore).

3. For general corporate purposes.

Financial Performance
Arunaya Organics has shown consistent growth in its financial performance over the past few years. The company’s revenues from operations for FY2024 were ₹5,820.52 lakh, while the EBITDA for FY2024 stood at ₹712.44 lakh. The Profit After Tax (PAT) for FY2024 was ₹359.78 lakh, showing a steady upward trend in profitability over the years. The company’s key performance indicators include a pre-issue EPS of ₹3.95, post-issue EPS of ₹2.31 for FY24, and a post-issue P/E ratio of 25.07x, which is significantly lower than the industry average of 77x.

IPO Valuation
With the IPO price set between ₹55 and ₹58 per share, Arunaya Organics has a market capitalization of ₹101.72 crore at the upper end of the price band. The IPO’s price-to-earnings (P/E) ratio is relatively attractive when compared to the industry average, suggesting a reasonably valued offering.

Grey Market Premium (GMP)
As of April 25, 2025, the Grey Market Premium (GMP) of Arunaya Organics IPO is ₹0, indicating a neutral outlook for the IPO. However, GMP is highly speculative and should not be considered a reliable indicator for investing decisions.

Allotment Process
The allotment for Arunaya Organics IPO will be finalized on May 05, 2025. Investors can check the allotment status online by visiting the registrar’s website. To check the allotment status, investors will need their application number, PAN, or DP Client ID.

IPO Subscription Details

• IPO Price Band: ₹55 to ₹58 per share

• Lot Size: 2,000 shares

• Minimum Investment: ₹1,16,000 for retail investors and ₹2,32,000 for High Net-Worth Individuals (HNIs)

• Market Maker: R.K. Stockholding Private Limited

• Book Running Lead Manager: UNISTONE CAPITAL PRIVATE LIMITED

• Registrar: BIGSHARE SERVICES PRIVATE LIMITED

Investment Recommendation
Based on the company’s stable financial performance, competitive valuation, and the IPO’s growth prospects, Arunaya Organics offers a promising opportunity for investors looking to gain exposure to the chemical and textile industry. However, with a Grey Market Premium of ₹0 and a price-to-earnings ratio significantly lower than the industry average, it is advisable to exercise caution and evaluate individual risk tolerance before making investment decisions. Given the current financials and GMP, the IPO might not offer significant listing gains in the short term. Therefore, investors seeking listing gains should proceed with caution.

The Upcoming IPOs in this week and coming weeks are Arunaya Organics,Kenrik Industries,Wagons Learning,Srigee DLM.

The Current active IPO are Ather Energy, Iware Supplychain Services.

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