Arunaya Organics makes negative market debut; shares list at 48% discount

Arunaya Organics IPO listing today: Shares of dyes manufacturer Arunaya Organics made a tepid debut on the NSE SME platform on May 7, Arunaya Organics shares listed at ₹30.10 per share on the NSE, reflecting a discount of ₹28.90 or 48 per cent against the issue price of ₹58 per share.

 

Arunaya Organics listing was significantly below the grey market expectations. Ahead of the listing, the unlisted shares of Arunaya Organics were trading at flat at ₹58 per share, the upper band price, according to sources tracking unofficial market activity.

 

Arunaya Organics IPO details

The ₹33.99 crore SME IPO comprises a fresh issue of 5.26 million equity shares and an offer for sale (OFS) with promoter Shivali Agrawal divesting 0.6 million equity shares. The public issue opened for subscription on Tuesday, April 29, 2025, and ended on Friday, May 2, 2025. The basis of the allotment of shares was finalised on Monday, May 5, 2025. 

 

 

The issue received a decent response from investors, getting oversubscribed by 2.53 times. The retail investors portion was oversubscribed by 4.33 times, followed by non-institutional investors (NIIs) at 1.49 times and qualified institutional buyers (QIBs) at 1.01 times. 

 

Bigshare Services is the registrar of the issue. Unistone Capital is the sole book-running lead manager.  

 

According to the red herring prospectus (RHP), company plans to use ₹11.78 crore from the net issue proceeds for setting up a new manufacturing facility, located at Dahej, Bharuch in Gujarat and ₹9 crore for meeting working capital requirements. The remaining funds will be used for general corporate purposes. Arunaya Organics will not receive any proceeds from the OFS.  

Also Check: Kenrik Industries IPO allotment Status 

 

About Arunaya Organics

Incorporated in July 2010, Arunaya Organics is a trader and manufacturer of various types of dyes and their intermediaries. It supplies a wide range of products including reactive, acid, direct, basic and solvent dyes, as well as dye intermediaries. The company's manufacturing unit is located in Ahmedabad, Gujarat. It has an annual capacity of 30 metric tonnes per annum. 

 

In fiscal year 2023-24 (FY24), the company reported revenue from operations of ₹62.23 crore, down 17.95 per cent from ₹75.85 crore in the previous financial year. Its profit after tax (PAT) grew 133.86 per cent Y-o-Y to ₹4.05 crore compared to ₹1.73 crore in the year-ago period.