Arunaya Organics Limited, a chemical manufacturer, is poised to enter the capital markets with an initial public offering (IPO) valued at ₹33.99 crores, comprising a completely fresh issue of 52.60 lakh equity shares. The IPO subscription window opens on April 29, 2025 and concludes on May 2, 2025, with the company set to be listed on the NSE SME platform on Wednesday, May 7, 2025. This marks a significant milestone in Arunaya Organics’ growth journey as it opens its doors to public investors.
The equity shares, bearing a face value of ₹10 each, are being offered in a price range of ₹55 to ₹58 per share, with a lot size of 2,000 shares. Retail investors may participate with a minimum investment of ₹1,10,000 (1 lot), while High Net-worth Individuals (HNIs) are required to invest at least ₹2,32,000 (2 lots). Share allotment is expected to be finalised by May 5, 2025, ensuring a prompt listing thereafter. With its established foothold in the chemicals sector, Arunaya Organics presents a promising opportunity for investors seeking to participate in India’s expanding industrial and energy ecosystem.
Arunaya Organics Limited IPO is a fundraise worth ₹33.99 crores, comprising purely of a fresh issue with 52,60,000 shares reserved for the market maker R.K. Stock Holding Private Limited. Qualified Institutional Buyers are being offered not more than 20% of the net issue, retail investors are being offered not less than 40% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 40% of the net issue. The IPO will be available for subscription from April 29, 2025, to May 2, 2025, providing an opportunity for investors looking to gain a stake in the chemical manufacturing space.
| Arunaya Organics Limited IPO date | April 29, 2025 - May 2, 2025 |
| Price band | ₹55 to ₹58 per share |
| Face value | ₹10 per share |
| Lot size | 2000 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 52,60,000 shares amounting to ₹30.51 crores |
| Offer for sale | 6,00,000 shares amounting to ₹3.48 crores |
| Total issue size | 58,60,000 shares amounting to ₹33.99 crores |
| Listing at | NSE SME |
| Market maker portion | 2,96,000 shares R.K. Stock Holding Pvt Ltd |
| Shareholding pre-issue | 91.72% |
The Arunaya Organics Limited IPO opens for subscription on April 29, 2025, and closes on May 2, 2025, with allotment scheduled for May 5, 2025.
| IPO open date | April 29, 2025 (Tuesday) |
| IPO close date | May 2, 2025 (Friday) |
| Basis of allotment | May 5, 2025 (Monday) |
| Initiation of refunds | May 6, 2025 (Tuesday) |
| Credit of shares to Demat account | May 6, 2025 (Tuesday) |
| Listing date on NSE SME | May 7, 2025 (Wednesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on May 2, 2025 (Friday) |
Founded in 2010, Arunaya Organics Private Limited has established itself as a distinguished manufacturer and exporter of dyes and chemical intermediates. Over the years, the company has earned a commendable reputation for consistently delivering premium-quality products that cater to a wide spectrum of industries, including textiles, coatings, plastics, mining, and food processing.
Operating from its facility in Naroda, Ahmedabad, the company offers a diverse range of products in various forms such as standardised spray-dried and tray-dried powders, granules, crude extracts, salt-free variants, and those treated by reverse osmosis. With an annual production capacity of around 30 metric tonnes, Arunaya Organics exemplifies a commitment to precision, consistency, and innovation in chemical manufacturing.
The proceeds from the Arunaya Organics IPO are proposed to be utilised for setting up a new manufacturing facility at Dahej III Industrial Estate in Gujarat (the Proposed Greenfield Project) with an estimated outlay of ₹11,790 lakhs, funding the company’s working capital requirements amounting to ₹9,000 lakhs, and addressing general corporate purposes.
As of March 31, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 44.15%, Return on Capital Employed (ROCE) at 55.71% and a Debt-to-Equity ratio of 1.19. The Return on Net-Worth (RoNW) stands at 36.27%, and the PAT Margin was 6.52%. The Price to Book Value was 5.29. The company’s market capitalisation is ₹101.72 crore.
| Period Ended | December 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 58.21 | 62.79 | 76.37 | 62.26 |
| Assets | 60.74 | 45.04 | 38.62 | 34.36 |
| Net Worth | 16.78 | 11.18 | 7.19 | 4.72 |
| Profit After Tax | 3.6 | 4.06 | 1.73 | 1.33 |
| Reserves & Surplus | 4.5 | 10.34 | 6.35 | 3.99 |
| Total Borrowing | 13.81 | 13.3 | 13.17 | 9.9 |
Amount in ₹ crores
The pre-IPO EPS is at ₹3.30 while the post-IPO EPS will be ₹2.74. Similarly, the pre-IPO Price to Earnings ratio is 17.55 and will become 21.21 post-IPO.
Arunaya Organics Limited benefits from a seasoned leadership team with deep expertise in the chemicals and dyes industry, enabling the company to make strategic decisions, maintain operational discipline, and pursue sustainable growth. Their diverse product portfolio—which includes various types of dyes and specialty performance chemicals in multiple forms—gives the company a competitive edge by catering to a wide spectrum of customer needs across domestic and global markets. This versatility not only supports market expansion but also reduces dependency on a single product line.
The company’s strong emphasis on research and development, along with its adherence to stringent quality and environmental standards (as reflected in ISO certifications), reinforces its credibility in the marketplace. Strategic deployment of IPO proceeds toward a new manufacturing unit in Dahej, Gujarat is also poised to enhance operational scale and efficiency. Combined with a growing presence in both domestic and export markets since 2010, Arunaya Organics is well-positioned to capture emerging demand in eco-friendly and specialty chemical segments, especially given the positive momentum in the SME IPO space.
Despite its strengths, Arunaya Organics faces several operational and financial challenges. One major concern is its dependence on a limited number of key customers, which heightens the risk of revenue disruption if any major client is lost. Furthermore, the company lacks long-term contracts with raw material suppliers, exposing it to supply chain instability and unpredictable cost fluctuations. This, combined with the inherently volatile pricing in the chemical sector, poses risks to profit margins and production continuity.
Additionally, the company’s business model has inherent limitations such as a significant reliance on third-party manufacturers, which may affect quality control and cost efficiency. The high minimum investment required for the IPO could restrict participation from small retail investors. Meanwhile, the listing on the SME platform introduces liquidity and volatility risks. A decline in revenue from FY 2023 to FY 2024, along with a relatively short history of strong profitability, may raise investor concerns about the company’s ability to deliver consistent financial performance over the long term.
Being among the early public investors in Arunaya Organics Limited could present an opportunity to participate in the company's growth trajectory in the space of chemical manufacturers. However, investors should carefully assess multiple factors including the company's operational track record, financial health, sector dynamics, and growth strategy, while also considering their own investment objectives and risk appetite before making an investment decision. It's recommended to review the offer document and seek professional advice if needed to make an informed choice about participating in this IPO.
What is the Arunaya Organics Limited IPO?
The Arunaya Organics Limited IPO is an NSE SME offering consisting of 58,60,000 equity shares with a face value of ₹10, aiming to raise ₹33.99 crore. The price band has been set between ₹55 to ₹58 per share, with a minimum order quantity of 2000 shares. This IPO will be open for subscription from April 29, 2025, to May 2, 2025. Unistone Capital Private Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar, while R.K. Stock Holding Private Limited is the market maker.
When will the Arunaya Organics Limited IPO open?
The Arunaya Organics LimitedIPO will open for subscription on April 29, 2025, and will close on May 2, 2025.
When is the Arunaya Organics Limited IPO listing date?
The tentative listing date for the Arunaya Organics Limited IPO is Wednesday, May 7, 2025.
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