Arunaya Organics is a prominent player in the manufacturing and trading of various dyes and intermediaries. They offer a comprehensive range of products, including reactive, acid, direct, basic, and solvent dyes, alongside dye intermediates. The company’s offerings cater to diverse industries like textiles and paper, with products available in various forms such as spray-dried and tray-dried powders, granules, and reverse osmosis-treated products.

The company has launched a Book Built Issue worth ₹ 33.99 Crores, consisting of a Fresh Issue of 52.6 Lakh shares worth ₹ 30.50 Crores and an Offer for Sale (OFS) of 6.00 Lakh shares totaling ₹ 3.48 Crores. The subscription period for the Arunaya Organics IPO opens on April 29, 2025, and closes on May 02, 2025. The allotment is expected to be finalized on May 05, 2025, with the shares listed on the NSE SME on May 07, 2025.

IPO Price Band & Market Capitalization

The price band for the Arunaya Organics IPO is set at ₹ 55 to ₹ 58 per equity share. At the upper price band of ₹ 58, the company's market capitalization at the time of the IPO will be ₹ 101.72 Crores. The lot size of the IPO is 2,000 shares, and retail investors are required to invest a minimum of ₹ 1,16,000. For High-Net-Worth Individuals (HNIs), the minimum investment requirement is 2 lots (4,000 shares), amounting to ₹ 2,32,000.

Lead Manager & Registrar

UNISTONE CAPITAL PRIVATE LIMITED is the Book Running Lead Manager for the Arunaya Organics IPO, while BIGSHARE SERVICES PRIVATE LIMITED is the registrar for the issue. R.K. Stockholding Private Limited will serve as the Market Maker for the IPO.

Grey Market Premium (GMP)

Currently, the Grey Market Premium (GMP) of Arunaya Organics Limited IPO is ₹ 0, indicating no expected listing gains in the unorganized market. The GMP can fluctuate based on demand and supply in the grey market but does not reflect the official listing price on the stock exchange.

Arunaya Organics IPO Subscription Status

As of 11:30 AM on April 30, 2025, the Arunaya Organics IPO has been subscribed 0.92 times on its second day of the subscription period. Investors can check the live subscription status on the official NSE website.

Objectives of the Arunaya Organics IPO

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

1. ₹ 1,178.95 Lakh for setting up a new manufacturing facility at Dahej III, Industrial Estate, Bharuch, Gujarat, as part of the company’s proposed Greenfield project.

2. ₹ 900.00 Lakh to fund working capital requirements.

3. General Corporate Purposes.

Financial Performance

The company has displayed consistent financial growth over the years. For the fiscal years 2024, 2023, and 2022, the company’s revenue from operations was ₹ 5,820.52 Lakh, ₹ 6,279.45 Lakh, and ₹ 7,636.96 Lakh, respectively. The company has also shown significant profit growth, with the profit after tax for FY 2024 standing at ₹ 359.78 Lakh.

Key Metrics:

• Pre-issue EPS for FY24: ₹ 3.95

• Post-issue EPS for FY24: ₹ 2.31

• Pre-issue P/E ratio: 14.68x

• Post-issue P/E ratio: 25.07x (Industry P/E: 77x)

• ROCE for FY24: 36.27%

• ROE for FY24: 44.15%

• RoNW for FY24: 55.71%

These metrics suggest that the IPO is fairly priced, and investors may find it an attractive proposition, particularly given the company’s solid financial performance.

IPO Review - Should You Apply?

Given the company’s solid financial history and the fair pricing of the IPO, we recommend avoiding the Arunaya Organics IPO for short-term listing gains due to the lack of any Grey Market Premium (GMP) and high valuations. The company’s steady growth makes it a potential long-term investment, but risk-averse investors should proceed with caution.

The Upcoming IPOs in this week and coming weeks are  Wagons Learning, Srigee DLM, Manoj Jewellers.

The Current active IPO are Kenrik Industries,Arunaya Organics, Ather Energy, Iware Supplychain Services.

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