The Arunaya Organics Initial Public Offering (IPO) kicked off today, April 29, 2023, and will remain open for subscriptions until May 2, 2023. Investors have the opportunity to purchase shares at a price range between ₹55 to ₹58 per equity share, with each share having a face value of ₹10. The minimum bid requirement is set at 2,000 shares, with increments of 2,000 shares thereafter.
About Arunaya Organics Limited
Founded in 2010, Arunaya Organics specializes in the production and export of specialty dyes and intermediates. The company has built a solid reputation for its commitment to quality, serving various sectors such as textiles, paints, plastics, mining, and food processing.
Their diverse product lineup includes:
- Standardized spray-dried and tray-dried powders
- Granules and crude materials
- Reverse osmosis-treated products
- Salt-free options
Competitive Landscape
In the red herring prospectus (RHP), Arunaya Organics identifies its comparable peers in the market, including:
- Vipul Organics Limited with a P/E ratio of 72.94
- Mahickra Chemicals Limited at a P/E ratio of 81.43
- Ducol Organics & Colours Ltd showing a P/E ratio of 34.96
Subscription Status Update
As of the first day of the subscription, Arunaya Organics’ IPO has garnered 34% of bids. The breakdown shows that the retail segment is performing well with an 82% subscription rate, while the non-institutional investor (NII) portion has only seen 3% uptake. Interestingly, the qualified institutional buyer (QIB) segment has yet to receive any bids. As of 1:44 PM IST, the company has received bids for 1,888,000 shares against 5,564,000 available shares, according to chittorgarh.com.
IPO Structure and Purpose
The Arunaya Organics IPO comprises a fresh issue of 5,260,000 equity shares, amounting to approximately ₹30.51 crore, alongside an offer-for-sale (OFS) of 3.48 crore equity shares from its promoters. The net proceeds from this IPO will be directed towards:
- Establishing a new manufacturing facility in Gujarat
- Meeting working capital needs
- Addressing general corporate purposes
Unistone Capital Pvt Ltd is leading the management of this offering, while Bigshare Services Pvt Ltd serves as the registrar. R.K. Stock Holding Private Limited acts as the market maker for the IPO.
Current Market Sentiment
As of today, the grey market premium (GMP) for Arunaya Organics is reported at ₹0, indicating that shares are trading at their issue price of ₹58 without any added premium or discount in the grey market, as noted by investorgain.com. This situation reflects the market’s current sentiment regarding investor willingness to pay beyond the initial offering price.
For more information on upcoming IPOs, check out Urban Company, which recently filed its draft papers with SEBI for a significant ₹1,900 crore offering.
Stay tuned for more updates on Arunaya Organics and other market movements!
