Arunaya Organics IPO: Price, Overview, And GMP

Arunaya Organics IPO- Complete Overview

Arunaya Organics IPO under the SME IPO category is a book build issue of Rs. 33.99 Cr by Arunaya Organics Limited, which was incorporated in 2010, and is into the manufacturing and exporting of specialty dyes and intermediates.

The company has gained an excellent reputation in the market for high-quality delivery of chemical products to various industries like textiles, paints, plastics, mines, and food processing.

Products offered by the company are in many forms, including standardized spray-dried and tray-dried powders, granules, crude, salt-free products, and reverse osmosis-treated products.

The company has its manufacturing plant at C-8, GIDC Estate, Naroda, Ahmedabad-382330, Gujarat, India, having a production capacity of about 30 metric tons per annum.

Products

Acid Dyes: for protein fibers such as wool or nylon- applied in acid solution for good fixation. 

Basic Dyes: A water-soluble dye for acrylic fibers, used for coloring paper, jute, soap, and detergents.

Direct Dyes (Substantive Dyes): Alkali-neutral bath- recommended for cotton, paper, and other cellulosic fibers; also pH indicators. 

Solvent Dyes: Dye-soluble in organic solvents for coloring craft paper and in cosmetics to produce a glamorous effect.

Dye Intermediates: Chemical precursors for dyes that give final color, stability, and performance in the dyeing process.

 

 

Arunaya Organics IPO Overview

The Arunaya Organics IPO date is on 29 Apr 2025, and its initial public offering will end on 02 May 2025. 

This upcoming IPO date is from 29 Apr to 02 May, 2025. Arunaya Organics IPO price is Rs. 55 to Rs.58 for each Share. 

The Arunaya Organics IPO listing date (expected) is 07 May 2025, and listing at NSE and SME.

Click to open demat account and apply for the IPO.

Company Financial

(Amount in Lac)

 

Cash Flows

(Amount in lac)

 

Product-wise Revenue Breakdown 
 

Through Manufacturing

Through Trading

 

 

 

Through Job Work

 

Industry-Wise Revenue Breakdown

 

(Source: RHP)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Proposed Greenfield Project: construction of a new manufacturing plant at Vagra, Bharuch, Gujarat.

• Requirements for working capital.

• General corporate purposes.

Click to check the IPO application status.

 

Peers of Arunaya Organics Ltd.

 

Evaluation

The Arunaya Organics Limited IPO price is Rs. 55 to Rs. 58 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs. 3.95 from the last year, the resulting P/E ratio is 14.68x.

Considering the weighted EPS of Rs. 2.79 for the last three years, the P/E ratio is 20.78x.

 

IPO's Strengths

• Seasoned and committed promoter, and a skilled management group with a wealth of industry understanding.

•  Broad range of products.

•  R&D capacity.

•  Assurance of Quality.

 

IPO’s Weaknesses

• More than 90% of the revenue generated by the company is completely dependent on the operation job work outsourced to the family business i.e, Chinmay Chemicals. Such dependency, if reduced it may become disrupted, or something adverse may occur at official facilities in Chinmay, and that should badly reflect upon business operations and reputation.

• The company intends to lay out a new plant funded by IPO receipts. However, various factors, including cost overruns, approvals for regulatory compliance, labor disputes, and breakdowns in the supply chain, may delay or extend the schedule of the new plant, which would affect cash flows as well as growth.

• The Indian company's classification under SMA-1 and SMA-2 was due to late loan repayments in the financial year 2023-24. Although it's not facing any current default, such behavior may spoil its credibility as well as financial stability.
  
  

Arunaya Organics IPO GMP

Arunaya Organics IPO GMP has not started yet as of 25 Apr 2025.

IPO Timetable (Tentative)

The Arunaya IPO opening date is from April 29 to May 02, 2025, with allotment on May 05, refund initiation on May 06, and listing on May 07, 2025.

 

Arunaya Organics IPO Details 

The IPO with a Face Value of Rs. 10 per share offers a total issue size of 58,60,000 Shares (Rs. 33.99 Cr).

IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs. 1,16,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs. 2,32,000.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Arunaya Organics Ltd.

• Vinod Agrawal

• Shivali Agrawal.

 

IPO Lead Managers

• Unistone Capital Pvt Ltd.
  
  

Dividend Policy

The company has not declared dividends in the last three fiscal years. 

 

 

Conclusion

The Arunaya Organics IPO provides potential for growth in the specialty chemicals industry. It has good product offerings and management with wide experience. Still, high independence over a related party and past loan repayment-related issues remain the major risks. Investors should consider growth possibilities against these concerns while applying.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.