Arunaya Organics Limited is coming up with an IPO consisting of a fresh issue of 52.60 lakh shares worth INR 30.51 crores and an offer to sell 6.00 lakh existing shares worth INR 3.48 crores. The company aims to set up a new manufacturing facility, fund working capital requirements and general corporate purposes.

Arunaya Organics IPO – Important Dates

Arunaya Organics Limited IPO – Company Profile

Arunaya Organics Limited operates in the dye industry, specialising in the trading and manufacturing of various dyes and intermediates, including reactive, acid, direct, basic, and solvent dyes. They also provide high-quality chemical products for the paper and textile industries. 

Arunaya Organics Limited’s manufacturing facility is located at C-8, GIDC Estate, Naroda, Ahmedabad, Gujarat, has an annual capacity of 30 metric tons. It is ISO 9001:2015 and ISO 14001:2015 certified, ensuring quality and environmental management. 

Strategically located near Mundra Port and ICD Ahmedabad, their facility ensures efficient raw material procurement and product distribution, catering to domestic and international markets.

Arunaya Organics Ltd IPO Fundamental Analysis

Arunaya Organics Limited’s financial analysis reveals a mixed performance. Revenue has decreased, but rising equity, profitability, EPS, and RoNW, reflect strong financial health, business expansion, and increased investor confidence.

• Revenue Trend: The revenue decreased from ₹7,585.02 lakhs in March 2023 to ₹6,223.32 lakhs in March 2024. The revenue for the current year’s 9-month period ending December 2024 is ₹5,784.50 lakhs.

• Equity and Liabilities: Equities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 

• Profitability: The profit after tax (PAT) increased from ₹173.44 lakh in March 2023 to ₹405.68 lakh in March 2024, boosting investor confidence. The profit for the period ending December 2024 is ₹359.78 lakh. 

• Earnings per Share (EPS): The diluted EPS increased from ₹1.69 in March 2023 to ₹3.95 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the period ending December 2024 is ₹3.09. 
• Return on Net Worth (RoNW): The RoNW has risen from 24.11% to 36.27%, indicating an increase in the company’s ability to generate returns on shareholder equity. 

• Financial Position: Total assets have increased, suggesting potential business growth. 

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Arunaya Organics IPO Financial Analysis

Arunaya Organics Limited IPO Peer Comparison

Arunaya Organics Limited shows EPS growth, with a solid RoNW. Vipul Organics Limited leads in revenue, Mahickra Chemicals Limited and Ducol Organics & Colours Ltd show strength in P/E ratio and NAV, respectively.

Arunaya Organics Ltd IPO Objective

The main objective of Arunaya Organics Limited is to set up a new manufacturing facility, fund working capital requirements and general corporate purposes.

1. A new manufacturing facility: The company intends to utilise INR 1,281.74 lakhs from the Net Proceeds to set up a new manufacturing facility located at Dahej, Bharuch, Gujarat. 

2. Funding Working capital requirements: The company plans to utilise INR 900.00 lakhs from the Net Proceeds to fund future growth requirements of their company. 

3. General corporate purposes: The company will deploy the remaining proceeds for general corporate purposes to support business growth. 

Arunaya Organics IPO Risks And Challenges

Arunaya Organics Limited’s risks include reliance on third-party suppliers for key raw materials, dependence on a few customers for major revenue, and vulnerability to natural or unforeseen events in or around Gujarat could affect their business, operations and profitability.

• The company relies on a third party for supplying products. Any disruptions at such a production or manufacturing facility and their supply chain arrangements, or failure to adhere to the relevant quality standards, may harm their reputation, business, and financial condition.

• The company is dependent on a few customers for a major part of its revenues. Any failure to continue their existing arrangements could adversely affect their business and results of operations.

• The companies’ manufacturing units are located in Gujarat. Any localised social unrest, natural disaster, service disruption, or other unforeseen events in or around Gujarat could lead to production interruptions or shutdowns at their facilities.

Arunaya Organics Ltd IPO – Industry & Market Potential

India leads in global dye manufacturing, contributing 16 to 18% to world dyestuff exports across 90+ countries. In FY23, India’s major chemical and petrochemical exports reached US$ 23.8 billion, supported by strong demand. 

The chemical industry’s exports stood at US$ 8.4 billion until August FY24, with India ranking 9th in global exports. The market size is expected to reach US$ 300 billion by 2025, supported by policy initiatives, export momentum, and infrastructure expansion.

India exports chemicals to 175+ countries, with the USA, Brazil, and China as key markets. Rising shipments of organic, inorganic chemicals, and dyes are expected to drive future growth, supported by expanding reach into emerging markets. 

Arunaya Organics Limited IPO – Type of Offer

Arunaya Organics Limited plans a fresh issue of 52.60 lakh shares aggregating to INR 30.51 crore. The funds will be utilised to set up a new manufacturing facility, fund working capital requirements and general corporate purposes. Additionally, the company proposes an offer for sale of 6.00 lakh shares aggregating to INR 3.48 cr. 

1. Fresh Issue: The company will issue 52.60 lakh new shares to set up a new manufacturing facility, fund working capital requirements and general corporate purposes. 
2. Offer for sale: Arunaya Organics Limited is offering to sell 6.00 lakh existing shares worth INR 3.48 crores. The following are the details of the existing shareholder who is also the promoter selling the shares:

Arunaya Organics IPO Offer Size

The offer size of Arunaya Organics Limited is INR 33.99 crores, consisting of a fresh issue of 52.60 lakh shares worth INR 30.51 crores and an offer to sell 6.00 lakh existing shares worth INR 3.48 crores. The company aims to set up a new manufacturing facility, fund working capital requirements and general corporate purposes. 

Arunaya Organics Limited IPO Allotment Structure

Arunaya Organics Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 2,96,000 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 2,96,000 shares, is reserved for market makers. 

How to apply for the Arunaya Organics IPO?

To apply for the Arunaya Organics Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Arunaya Organics Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Arunaya Organics Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Arunaya Organics IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Arunaya Organics Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Arunaya Organics Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Arunaya Organics Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Arunaya Organics Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes. 

Arunaya Organics Ltd IPO Offer Registrar

The registrar for the Arunaya Organics Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Bigshare Services Private Limited

Office No. S6-2, 6th Floor, Pinnacle Business Park, 

Next to Ahura Centre, Mahakali Caves Road, Andheri East, 

Mumbai – 400 093, Maharashtra, India

Tel: 022 – 6263 8200

E-mail: [email protected]

Website: www.bigshareonline.com 

Arunaya Organics IPO – FAQs