Arunaya Organics IPO sees 34% subscription on day 1

Arunaya Organics’ initial public offering (IPO) opened for subscription today, April 29, 2025, and will close on May 2, 2025. The IPO has a price band of ₹55 to ₹58 per share. So far, the offering has seen a 34% subscription, with the retail portion being particularly strong, subscribed at 82%. The issue includes 52.6 lakh fresh equity shares.

Company Overview: Founded in 2010, Arunaya Organics specializes in the manufacturing and export of specialty dyes and intermediates. With a reputation for delivering high-quality chemical products, the company caters to various industries such as textiles, paints, plastics, mining, and food processing. Their diverse product range includes spray-dried and tray-dried powders, granules, crude materials, reverse osmosis-treated products, and salt-free options.

IPO Details:

Price Band: ₹55 to ₹58 per equity share (face value: ₹10)

Minimum Bid: 2,000 shares (multiples thereafter)

Shares Offered: 55.64 lakh shares (including 52.6 lakh fresh issue and 3.48 crore OFS by promoters)

Proceeds Usage: The company plans to use the funds to set up a new manufacturing facility in Gujarat, meet working capital needs, and support general corporate goals.

Subscription Status: As of 13:44 IST, the IPO has garnered bids for 18.88 lakh shares against 55.64 lakh shares on offer. The subscription breakdown is as follows:

Retail Portion: Subscribed 82%

Non-Institutional Investors (NII): 3% subscribed

Qualified Institutional Buyers (QIB): Not yet subscribed

Comparable Peers: Arunaya Organics compares to listed peers such as Vipul Organics Limited (P/E ratio 72.94), Mahickra Chemicals Limited (P/E ratio 81.43), and Ducol Organics & Colours Ltd (P/E ratio 34.96).

Grey Market Premium (GMP): Currently, Arunaya Organics IPO is trading at a GMP of ₹0, indicating shares are being traded at their issue price of ₹58 with no premium or discount in the grey market.

Lead Manager and Registrar: Unistone Capital Pvt Ltd is the lead manager for the offering, while Bigshare Services Pvt Ltd is the registrar.

The IPO marks a significant step for Arunaya Organics as it looks to expand its footprint and enhance its manufacturing capacity.

Note: The information provided is for general guidance. Investors are advised to consult with certified experts before making any investment decisions.