Arunaya Organics Limited is set to launch its IPO from April 29 to May 2, 2025, offering shares at ₹55-58 apiece. The company plans to utilize the proceeds for a new plant in Gujarat and working capital.
Arunaya Organics Limited, a renowned producer and exporter of specialty dyes and intermediates, is set to launch its initial public offering (IPO) from April 29, 2025, to May 2, 2025. The company has set the price band for the IPO between ₹55 to ₹58 per equity share, with each share having a face value of ₹10. This is a significant event for investors as the company plans to use the proceeds for expanding its operations and strengthening its financial position.
Founded in 2010, Arunaya Organics specializes in producing high-quality chemical products, which include various forms of dyes such as spray-dried and tray-dried powders, granules, crude products, reverse osmosis-treated items, and salt-free options. These products cater to a range of industries, including textiles, paints, plastics, mining, and food processing.
IPO Details and Use of Proceeds
The IPO consists of a fresh issue of 52,60,000 equity shares, totaling ₹30.51 crore, and an offer-for-sale (OFS) of 3.48 crore equity shares by the promoters. The company intends to utilize the funds raised from the IPO for several purposes, including the establishment of a new manufacturing plant in Gujarat, bolstering the working capital of the company, and addressing general corporate objectives.
Arunaya Organics aims to enhance its production capacity and extend its market reach, particularly through the new plant in Gujarat, a critical move to support the growing demand for its products. This expansion aligns with the company’s vision to solidify its position as a key player in the specialty chemicals industry.
IPO Management and Grey Market Premium
The IPO is being managed by Unistone Capital Pvt Ltd, which acts as the lead manager, while Bigshare Services Pvt Ltd is the registrar for the offering. R.K. Stock Holding Private Limited is serving as the market maker associated with the IPO.
As of today, the grey market premium (GMP) for Arunaya Organics’ IPO stands at ₹0, which suggests that shares are trading at their issue price of ₹58 with no premium or discount in the grey market, according to Investorgain.com.
Peer Comparisons
In terms of market comparisons, Arunaya Organics has listed its peers as Vipul Organics Limited, Mahickra Chemicals Limited, and Ducol Organics & Colours Ltd, with respective P/E ratios of 72.94, 81.43, and 34.96. The company’s solid reputation and extensive product offerings place it well within the competitive landscape of the Indian specialty chemicals sector.
The upcoming IPO is expected to garner significant interest from investors, especially given the company’s growth trajectory and plans for expansion. Investors looking for an opportunity in the specialty chemicals sector may find Arunaya Organics’ IPO a promising prospect.
