Arunaya Organics Limited, a well-established name in the manufacturing and trading of dyes and their intermediates, is gearing up for its Initial Public Offering (IPO). The company offers a wide array of products, including reactive, acid, direct, basic, and solvent dyes, alongside dye intermediates. Their products are available in various forms such as spray-dried powders, tray-dried powders, granules, crude, reverse osmosis-treated products, and salt-free variants. Additionally, the company also provides specialty performance chemicals tailored for industries such as paper manufacturing and textile dyeing.

The Arunaya Organics IPO, a book-built issue, will raise ₹33.99 Crores. It consists of a fresh issue of 52.6 lakh shares worth ₹30.50 Crores and an Offer for Sale (OFS) of 6 lakh shares totaling ₹3.48 Crores. The price band for the IPO has been set between ₹55 and ₹58 per share, and the lot size has been fixed at 2,000 shares. Retail investors must invest a minimum of ₹1,16,000, whereas High-Net-Worth Individuals (HNIs) are required to invest in two lots, which amounts to ₹2,32,000.

The subscription period for the IPO opens on April 29, 2025, and closes on May 2, 2025. The allotment of shares is expected to be finalized on May 5, 2025, and the listing is anticipated to occur on May 7, 2025, on the NSE SME. The IPO is managed by UNISTONE CAPITAL PRIVATE LIMITED as the book running lead manager, with BIGSHARE SERVICES PRIVATE LIMITED serving as the registrar for the issue. R.K. Stockholding Private Limited is the Market Maker for the IPO.

Arunaya Organics IPO GMP (Grey Market Premium): As of the latest update, the Grey Market Premium (GMP) for Arunaya Organics IPO is ₹0, indicating that there is no significant trading activity in the grey market. It’s important to note that the GMP can fluctuate based on market conditions, and no actual price discovery takes place in the grey market before the official listing. The GMP is provided purely for educational purposes and should not be used for making investment decisions.

Arunaya Organics IPO Live Subscription Status: As of 7:00 PM on May 2, 2025, the IPO was subscribed 2.45 times, signaling strong interest among investors. This is a crucial indicator of the demand for the company’s shares. The subscription data can be checked in real time on the NSE website.

Arunaya Organics IPO Allotment Status: The allotment of shares is expected to be finalized on May 5, 2025. Investors can check their allotment status by visiting the registrar’s website, where they will need to enter their application number, PAN, or DP Client ID.

Objectives of the Arunaya Organics IPO: The net proceeds from the IPO will be used for several purposes. Around ₹11.78 Crores will be allocated to setting up a new manufacturing facility in Dahej, Gujarat. ₹9 Crores will be utilized for working capital requirements, and the remainder will be used for general corporate purposes. This expansion will help the company to enhance its manufacturing capacity and better serve its customers.

Company Overview and Financial Performance: Arunaya Organics has demonstrated strong revenue and profit growth over the past few years. For the fiscal year 2024, the company reported revenues of ₹5,820.52 Lakh, an increase from ₹6,225.66 Lakh in fiscal 2022. The company’s EBITDA and Profit After Tax (PAT) also reflect a positive growth trajectory, with EBITDA of ₹712.44 Lakh for FY24. The PAT for FY24 was ₹359.78 Lakh, showing an upward trend compared to previous years.

The company has a solid financial standing, with a pre-issue earnings per share (EPS) of ₹3.95 and a post-issue EPS of ₹2.31 for FY24. Its return on capital employed (ROCE) is 36.27%, while its return on equity (ROE) is 44.15%, indicating a healthy business operation.

IPO Valuation and Market Considerations: The IPO is priced reasonably, with a pre-issue price-to-earnings (P/E) ratio of 14.68x and a post-issue P/E ratio of 25.07x. These metrics indicate that the IPO is fairly priced when compared to the industry’s average P/E ratio of 77x. The company’s strong financial performance, coupled with the positive growth prospects in the dye industry, makes the Arunaya Organics IPO an attractive investment for long-term growth.

However, it is crucial to note that despite the company’s solid financials and market position, the grey market premium (GMP) is ₹0, which suggests a lack of immediate market excitement or speculation regarding the IPO. The absence of GMP indicates that investors should take a cautious approach and not expect any significant listing gains.

IPO Recommendation: Given the stable financial performance and the reasonable pricing of the IPO, investors looking for long-term growth opportunities in the dyes and chemicals industry may find this IPO appealing. However, for those looking for short-term gains, particularly from listing price fluctuations, the Arunaya Organics IPO may not be the best choice. It is advisable for investors to carefully evaluate their investment goals and risk appetite before subscribing to the IPO.

In conclusion, while the Arunaya Organics IPO shows promise for growth in a niche industry, potential investors should weigh the lack of grey market activity and consider the company’s long-term prospects before making an investment decision.

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

The Current active IPO are Wagons Learning, Kenrik Industries.

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