Arunaya Organics IPO
- IPO Date29 Apr, 2025 to 02 May, 2025
- Listing Date07 May, 2025
- Face Value₹10 per share
- Issue Price₹58 to ₹58 per share
- Lot Size2000 Shares
- Minimum Investment₹1,16,000
- Listing AtNSE SME
- Total Issue Size58,60,000 Shares
(aggregating up to ₹33.99 Cr) - Fresh Issue52,60,000 Shares
(aggregating up to ₹30.51 Cr)
- Offer for Sale6,00,000 Shares
(aggregating up to ₹3.48 Cr) - Issue TypeBookbuilding IPO
- Share holding pre issue1,22,78,432
- Shareholding post issue1,75,38,432
IPO Dates
Closing Date
02 May, 2025
Initiation of Refunds
06 May, 2025
Listing Date
07 May, 2025
29 Apr, 2025
Opening Date
05 May, 2025
Basis of Allotment
06 May, 2025
Credit of Shares
Arunaya Organics Lot Size
Investors can bid for a minimum of 2000 shares and in multiples thereof. The following table depicts the minimum and maximum investment by Retail Investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| HNI (Min) | 2 | 4000 | ₹2,32,000 |
| Retail (Min) | 1 | 2000 | ₹1,16,000 |
| Retail (Max) | 1 | 2000 | ₹1,16,000 |
Arunaya Organics Promoter Holding
Vinod Agrawal and Shivali Agrawal are the promoters of the company.
| Pre Issue Share Holding | Post Issue Share Holding |
|---|---|
| 91.72% | - |
Arunaya Organics COMPANY INFORMATION
Arunaya Organics IPO is a bookbuilding of ₹33.99 crores. The issue is a combination of fresh issue of 52.60 lakh shares aggregating to ₹30.51 crores and offer for sale of 6.00 lakh shares aggregating to ₹3.48 crores. Arunaya Organics IPO bidding started from April 29, 2025 and ended on May 2, 2025. The allotment for Arunaya Organics IPO was finalized on Monday, May 5, 2025. The shares got listed on NSE SME on May 7, 2025. Arunaya Organics IPO price band is set at ₹58 per share. The minimum lot size for an application is 2000. The minimum amount of investment required by retail investors is ₹1,10,000. But it is suggested to the investor to bid at the cutoff price to avoid the oversubscription senerio, which is about to ₹1,16,000. The minimum lot size investment for HNI is 2 lots (4,000 shares) amounting to ₹2,32,000. Unistone Capital Pvt Ltd is the book-running lead manager of the Arunaya Organics IPO, while Bigshare Services Pvt Ltd is the registrar for the issue.The market maker for Arunaya Organics IPO is R.K.Stock Holding Private Limited. Refer to Arunaya Organics IPO RHP for detailed information.
Incorporated in 2010, Arunaya Organics Limited is engaged in the manufacturing and exporting of specialty dyes and intermediates.
The company has garnered a strong reputation for delivering high-quality chemical products across various industries, including textiles, paints, plastics, mining, and food processing.
The company's products are available in multiple forms, such as standardized spray-dried and tray-dried powders, granules, crude, reverse osmosis-treated products and salt free.
The company has a production facility located at C-8, GIDC Estate, Naroda, Ahmedabad-382330, Gujarat, India, with an annual capacity of approximately 30 metric tons.
Products:
- Acid Dyes: Used on protein fibers like wool and nylon; applied in acid solution for strong bonding.
- Basic Dyes: Water-soluble dyes for acrylic fibers; used in coloring paper, jute, soaps, and detergents.
- Direct Dyes (Substantive Dyes): Applied in neutral/alkaline bath; suitable for cotton, paper, and cellulosic fibers; also pH indicators.
- Solvent Dyes: Dissolve in organic solvents; used for coloring craft paper and in cosmetics for vivid effects.
- Dye Intermediates: Chemical precursors for dyes; determine final color, stability, and performance in dye manufacturing process.
As of July 2024, the company had 36 employees.
Competitive Strengths:
- Experienced and dedicated promoter and professional management team with extensive domain knowledge.
- Wide product portfolio
- R&D capability
- Quality Assurance
Arunaya Organics Limited IPO Analysis
Comprehensive Overview of Arunaya Organics IPO
Arunaya Organics Limited, a Gujarat-based company engaged in manufacturing and trading dyes and dye intermediates, is entering the capital markets with an Initial Public Offering (IPO) on the NSE Emerge platform. The offering comprises a fresh issue of 52,60,000 equity shares and an offer for sale of 6,00,000 equity shares by promoter Shivali Agrawal, aggregating up to 58,60,000 shares. The bid period opens on April 29, 2025, and closes on May 2, 2025.
The company specializes in producing reactive, acid, direct, and solvent dyes, as well as performance chemicals for the textile and paper industries. A major portion of its production is outsourced to its group company Chinmay Chemicals Private Limited, accounting for more than 80% of its manufacturing throughput in recent years.
Arunaya Organics Limited IPO Financial Highlights and Performance Indicators
Revenue and Profitability Trends
Arunaya Organics reported a total revenue of ₹6,279.45 lakhs in FY24, which marked a decrease from ₹7,636.96 lakhs in FY23. However, despite the revenue decline, profitability showed a significant jump. Profit After Tax (PAT) rose to ₹405.68 lakhs in FY24 from ₹173.44 lakhs in FY23, showcasing strong cost management and margin optimization.
EBITDA and PAT Margins
The company’s EBITDA margin improved from 3.72% in FY23 to 10.39% in FY24. Similarly, PAT margin increased to 6.46% from 2.27% during the same period. This indicates improving operational efficiency and financial discipline.
Arunaya Organics Limited IPO Objects of the Issue
The net proceeds from the IPO are proposed to be utilized primarily for:
Working capital requirements
General corporate purposes
Issue expenses
These funds are aimed at strengthening the company’s liquidity and supporting future growth through operational scaling and raw material procurement.
Pros and Cons of Investing in Arunaya Organics IPO
Pros
Improving Margins – Significant growth in EBITDA and PAT margins showcases financial resilience.
Certified Manufacturing Standards – ISO 9001:2015 and ISO 14001:2015 certified facilities ensure compliance with quality and environmental norms.
Strategic Location – Facility proximity to Mundra Port and ICD Ahmedabad aids logistical efficiency for imports and exports.
Diverse Product Portfolio – A wide range of dyes and performance chemicals cater to both domestic and global clients.
Asset Growth – The total asset base increased from ₹3,435.82 lakhs in FY22 to ₹6,073.88 lakhs as of Dec 31, 2024.
Cons
Heavy Dependency on Group Company – Over 80% of production is outsourced to Chinmay Chemicals, indicating concentration risk.
Revenue Volatility – FY24 saw a notable decline in revenue compared to FY23.
No Dividend History – The company has not declared dividends in the past three fiscal years, reflecting reinvestment priorities but also limiting returns for income-seeking investors.
Limited Production Capacity – The facility’s annual production capacity of ~30 metric tons may constrain growth if demand surges.
SME Platform Listing – Listing on NSE Emerge entails lower liquidity and higher volatility compared to mainboard listings.
Arunaya Organics Limited IPO Investment Considerations and Risk Factors
Key Risks
The business is vulnerable to disruptions at Chinmay Chemicals, its primary production partner.
A decline in revenue amid growing competition can strain cash flows.
Any tightening in working capital can impact the company’s ability to scale operations.
Regulatory or environmental compliance risks could increase due to the nature of chemical manufacturing.
FAQ About Arunaya Organics IPO
Arunaya Organics IPO will open on 29 Apr, 2025 and close on 02 May, 2025. Investors must apply within this period to participate.
The Arunaya Organics IPO price band is set between ₹58.00 and ₹58.00 per share. The minimum lot size is 2000, requiring an investment of at least ₹116000.00.
The Arunaya Organics IPO shares are expected to be listed on 07 May, 2025, subject to regulatory approvals and final allotment.
You can track your Arunaya Organics IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Arunaya Organics IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.
The IPO opens on April 29, 2025, and closes on May 2, 2025. The UPI mandate end time is 5:00 PM on the closing day.
The company is engaged in trading and manufacturing various types of dyes, dye intermediaries, and performance chemicals. It caters to both domestic and export markets with products such as reactive, acid, and direct dyes.
Arunaya Organics has demonstrated improved profitability with a PAT growth of 133.89% in FY24. Its EBITDA and PAT margins have also shown consistent improvement year-on-year.
The company heavily depends on its group company Chinmay Chemicals for manufacturing. In FY24 alone, over 90% of revenue came through outsourced manufacturing from Chinmay Chemicals.
The proceeds will be used to meet working capital requirements, for general corporate purposes, and to cover issue-related expenses.
No, the company has not declared any dividends for the past three fiscal years. The board may consider future dividends based on earnings, cash flows, and capital requirements.
The equity shares will be listed on the NSE Emerge platform, as approved by the National Stock Exchange of India.