Arunaya Organics Limited, incorporated in 2010 and headquartered in Ahmedabad, is a manufacturer and exporter of dyes and intermediates catering to industries like textiles, paints, plastics, and food. Arunaya Organics’ IPO aims to raise ₹33.99 crores, with a ₹30.51 crore fresh issue for expanding manufacturing infrastructure and working capital. The price band is set at ₹55 – ₹58 per share, listing on NSE SME. The company offers reactive, acid, direct, and solvent dyes, focusing on domestic and international markets.
₹00
₹58
₹30.10
Expert Opinions
The Arunaya Organics IPO enters the market amid cautious optimism, driven by Arunaya’s niche in specialty dyes and expanding manufacturing footprint. The company’s strengths lie in its diversified product portfolio catering to textiles, paints, and plastics, backed by promoters with over a decade of industry expertise and a focus on R&D-driven innovation. However, risks include reliance on outsourced operations to a related party, vulnerability to global supply chain disruptions, and regulatory compliance costs linked to chemical manufacturing.
Valuation metrics for FY2024 highlight robust efficiency, with a 44.15% ROE and 55.71% ROCE, reflecting strong capital utilization, though the NAV of ₹10.88 per share suggests a price-to-book ratio exceeding 5x, indicating premium pricing relative to intrinsic value. Long-term prospects hinge on successful execution of its Bharuch plant expansion and ability to mitigate raw material price volatility. While the specialty chemicals sector offers growth potential, investors must weigh operational risks against the company’s improving profitability (PAT up to ₹4.06 crore in 2024) and export-oriented strategy.
Investor Considerations
Arunaya Organics IPO exhibits improving fundamentals, with net profit rising to ₹4.06 crore in FY24 (PAT margin of 6.52%), reflecting operational efficiency. The specialty chemicals sector benefits from growing demand in textiles, paints, and plastics, supported by export opportunities and domestic industrial expansion. The IPO’s Price-to-Book Value of 5.29x (based on ₹10.88 NAV and ₹55–₹58 price band) and debt/equity ratio of 1.19 suggest aggressive valuation and moderate leverage, necessitating scrutiny of earnings sustainability. Growth hinges on its Bharuch plant expansion (38% of proceeds) and R&D-driven product diversification.
Key risks include reliance on third-party suppliers, raw material price volatility, and SME liquidity constraints. Short-term traders may face volatility post-listing, while long-term investors could benefit from sectoral tailwinds if execution risks are mitigated. The investment horizon should align with capacity expansion timelines (12–24 months) and profitability trends, with a focus on monitoring post-listing operational performance and debt management.
| Date | GMP | Trend |
|---|---|---|
| 06 May 2025 11.45 | ₹00 | --- |
| 05 May 2025 18.25 | ₹00 | --- |
| 04 May 2025 12.07 | ₹00 | --- |
| 03 May 2025 15.08 | ₹00 | Down |
| 02 May 2025 11.01 | ₹6 | Up |
| 01 May 2025 11.20 | ₹00 | --- |
| 30 Apr 2025 10.30 | ₹00 | --- |
| 29 Apr 2025 10.13 | ₹00 | --- |
| 28 Apr 2025 20.49 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Arunaya Organics’ listing performance. While the GMP of ₹0 suggested a flat listing at the issue price, the stock actually listed at a severe discount of 48.10%. With a substantial prediction error of 48.10%, the GMP completely failed to anticipate the significant negative listing sentiment, demonstrating its unreliability as a price predictor in this case.
Arunaya Organics IPO Current GMP is ₹00.
Arunaya Organics IPO Expected Returns is 0.00%.
Arunaya Organics IPO estimated listing price is ₹58.