Arunaya Organics IPO Day 1: Check Subscription Status, Price Band, GMP And Key Details

The initial public offering (IPO) of Arunaya Organics Ltd. has been subscribed only 38% so far on the first day of bidding on Tuesday. The speciality dyes and intermediates manufacturer launched the IPO on April 29 to raise Rs 33.99 crore from the primary market.

Investors looking forward to participating in the IPO subscription can check the key details about the NSE SME issue before bidding.

The Arunaya Organics IPO is a book-building issue worth Rs 33.99 crore. It comprises a fresh issue of 52.6 lakh shares, amounting to Rs 30.51 crore, and an offer-for-sale of 6 lakh shares, aimed at raising  Rs 3.48 crore.

The price band for the IPO has been set between Rs 55 to Rs 58 per share. Retail investors can invest with a minimum lot size of 2,000 shares, requiring a minimum investment of Rs 1,16,000. High Net Worth Individuals (HNI) can apply for at least two lots, or 4,000 shares, aggregating to a minimum investment of Rs 2,32,000.

Unistone Capital Pvt. is the book-running lead manager of the Arunaya Organics IPO. Bigshare Services Pvt. is the registrar and RK Stock Holding Pvt. is the market maker for the issue.

The subscription window for the IPO is open from April 29 to May 2. The allotment of shares is expected to be finalised on May 5. Shares will be credited to the Demat account of successful bidders on May 6 and refunds will also take place on the same day for non-allottees.

The shares are tentatively scheduled to be listed on the NSE SME platform on May 7.

The Arunaya Organics IPO has been subscribed 0.38 times, or 38%, by 2:30 p.m. on Tuesday, April 29.

• Qualified Institutional Buyers: nil

• Non-Institutional Investors: 0.03 times

• Retail Investors: 0.93 times

*The subscription status will be updated at regular intervals

As per InvestorGain, the grey market premium for the IPO stood at Rs 0 as of 12:53 a.m. on April 29. It indicates a flat listing for the IPO. However, new trends could emerge as the subscription window comes to a close. 

Note: GMP is not an official source of data and is based on speculation.

The company is in the business of manufacturing and exporting acid dyes and intermediates. It caters to industries such as textiles, mining, paints and plastics.

Use of Proceeds

The company will utilise the proceeds from the IPO to set up a new manufacturing facility in Gujarat, funding its working capital requirements and general corporate purposes.

Financials

In FY24, the company reported a 134.68% year-on-year increase in profit after tax to Rs 4.06 crore from Rs 1.73 crore in FY23. Its revenue from operations declined 17.96% year-on-year to Rs 62.23 crore in FY24 from Rs 75.85 crore in FY23. For the period ended Dec. 31, 2024, its profit after tax stood at Rs 3.6 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.