Arunaya Organics Limited, based in Ahmedabad, specializes in the manufacturing and export of specialty dyes and intermediates. Arunaya Organics Limited is launching its Arunaya Organics Limited IPO.
The company caters to various industries, including textiles, paints, plastics, mining, and food. A significant portion of revenue is derived from job work services to its group company, Chinmay Chemicals Private Limited.
Arunaya Organics Limited IPO Details
- Opening Date: April 29, 2025
- Closing Date: May 2, 2025
- Issue Size: Up to 61,00,000 equity shares of face value ₹10 each
- Fresh Issue: 55,00,000 shares
- Offer for Sale (OFS): 6,00,000 shares by promoter Shivali Agrawal
- Issue Type: Book Building Process
- IPO Category: SME IPO
- Listing Platform: NSE EMERGE
- Registrar: Bigshare Services Pvt. Ltd.
- Merchant Banker: Unistone Capital Pvt. Ltd.
- Market Maker: Compulsory market making for a minimum of three years
- Basis of Allotment Finalization: May 5, 2025
- Initiation of Refunds: May 6, 2025
- Credit of Shares to Demat Accounts: May 6, 2025
- Listing Date on NSE EMERGE: May 7, 2025
Promoters of Arunaya Organics Limited
The promoters of Arunaya Organics Limited are Mr. Vinod Brijmohandas Agrawal and Ms. Shivali Vinod Agrawal. Both have been instrumental in establishing and steering the company since its inception in 2010.
Vinod Brijmohandas Agrawal
- Position: Chairman and Managing Director
- DIN: 02763617
- Appointment Date: July 30, 2010
- Professional Background: Mr. Agrawal brings over 15 years of experience in the chemical and dye industry. He has also served as the Past Chair of Young Indians, Ahmedabad Chapter (CII), highlighting his leadership in industry forums.
Shivali Vinod Agrawal
- Position: Executive Director
- DIN: 03210478
- Appointment Date: August 16, 2010
- Professional Background: Ms. Agrawal is actively involved in the company’s operations and strategic planning. She also holds directorships in related entities such as Chinmay Chemicals Pvt. Ltd. and Arunaya Foundation, indicating her broader engagement in the sector.
Shareholding Details
As per the Draft Red Herring Prospectus (DRHP):
- Vinod Agrawal: Holds 85,85,315 equity shares, representing approximately 69.92% of the company’s share capital.
- Shivali Agrawal: Holds 26,64,596 equity shares, representing approximately 21.70% of the company’s share capital.
Combined, the promoters hold a significant majority stake in Arunaya Organics Limited, underscoring their pivotal role in the company’s governance and strategic direction.
Grey Market Premium (GMP)
- As of April 23, 2025, the Grey Market Premium for Arunaya Organics IPO is ₹58, indicating a positive investor sentiment ahead of the listing.
Valuation Metrics
- Price-to-Earnings (P/E) Ratio: Based on the FY2024 EPS of ₹3.95, the P/E ratio is estimated to be between 13.92 and 14.68, depending on the final issue price. This valuation appears reasonable when compared to the average sector P/E ratio of approximately 22.5x.
Investment Considerations
Pros:
- Robust Financial Growth: The company has shown consistent growth in revenue and profitability over the past three years.
- Strong Return Ratios: High RONW and ROCE indicate efficient utilization of capital.
- Improving Debt Profile: A declining debt-to-equity ratio suggests prudent financial management.
- Reasonable Valuation: The P/E ratio is attractive compared to industry peers.
Cons:
- Reliance on Group Company: A significant portion of revenue is derived from outsourcing job work to Chinmay Chemicals Private Limited, a group company, which may pose operational risks.
- SME Listing: Being listed on the NSE EMERGE platform may result in lower liquidity and higher volatility compared to mainboard listings.
- Limited Diversification: The company’s operations are concentrated in the chemical sector, which may expose it to sector-specific risks.
Conclusion
The Arunaya Organics Limited IPO presents an opportunity to invest in a company with strong financial growth, efficient capital utilization, and reasonable valuation.
However, potential investors should consider the company’s reliance on a group entity for a significant portion of its revenue and the implications of an SME listing.
As always, it’s advisable to consult with a financial advisor to assess how this investment aligns with your individual risk tolerance and investment objectives.
Arunaya Organics Limited IPO Lot Size
The Arunaya Organics Limited IPO has a lot size of 2,000 equity shares. This means that investors must apply for a minimum of 2,000 shares, and applications must be in multiples of this lot size.
| Application | Lots | Shares | Amount |
| Retail (Minimum) | 1 | 2,000 | ₹1,16,000 |
| Retail (Maximum) | 1 | 2,000 | ₹1,16,000 |
| HNI (Minimum) | 2 | 4,000 | ₹2,32,000 |
The IPO is scheduled to open on April 29, 2025, and close on May 2, 2025. It will be listed on the NSE EMERGE platform. The price band for the issue is set between ₹55 and ₹58 per share.
Product Portfolio
Arunaya Organics manufactures a wide array of dyes and intermediates, including:
- Acid Dyes
- Basic Dyes
- Direct Dyes
- Reactive Dyes
- Solvent Dyes
- Dye Intermediates
These products are available in various forms such as standardized spray-dried and tray-dried powders, granules, crude, reverse osmosis-treated products, and salt-free variants.
The company also offers specialty performance chemicals tailored for the paper industry and textile dyeing applications.
Manufacturing Facility
The company’s manufacturing facility is located at C-8, GIDC Estate, Naroda, Ahmedabad, Gujarat. Strategically positioned near Mundra Port and ICD Ahmedabad, the facility benefits from efficient logistics for product distribution and raw material procurement.
Arunaya Organics Limited Returns
Here is the returns summary for Arunaya Organics Limited over the past three fiscal years, based on the latest available data:
Returns Summary
| Return Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Return on Net Worth (RONW) (%) | 28.17% | 24.11% | 36.27% |
| Return on Capital Employed (ROCE) (%) | 41.20% | 35.50% | 55.71% |
| Return on Assets (ROA) (%) | 6.35% | 7.13% | 12.89% |
| Earnings Per Share (EPS) (₹) | ₹1.50 Crores | ₹1.69 Crores | ₹3.95 Crores |
| Net Profit Margin (%) | 2.16% | 2.28% | 6.53% |
These metrics indicate a consistent growth in profitability and efficiency over the three fiscal years, with notable improvements in RONW, ROCE, and ROA, suggesting enhanced operational performance and financial stability.
Arunaya Organics Limited Financial Information
Here is the financial information for Arunaya Organics Limited for the fiscal years 2022, 2023, and 2024:
Financial Summary
| Particulars | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenue | ₹61.55 Crores | ₹75.85 Crores | ₹62.23 Crores |
| Expenses | ₹60.42 Crores | ₹73.97 Crores | ₹57.21 Crores |
| Net Income (PAT) | ₹1.33 Crores | ₹1.73 Crores | ₹4.06 Crores |
| Earnings Per Share (₹) | ₹1.50 Crores | ₹1.69 Crores | ₹3.95 Crores |
| Return on Net Worth (%) | ₹28.17 Crores | ₹24.11 Crores | ₹36.27 Crores |
| Return on Capital Employed (%) | ₹41.20 Crores | ₹35.50 Crores | ₹55.71 Crores |
| EBITDA Margin (%) | ₹3.20 Crores | ₹3.72 Crores | ₹10.39 Crores |
| Debt-to-Equity Ratio | ₹2.10 Crores | ₹1.83 Crores | ₹1.19 Crores |
These figures indicate a consistent growth in revenue and profitability over the three fiscal years, with a notable improvement in the EBITDA margin and a reduction in the debt-to-equity ratio, suggesting enhanced operational efficiency and financial stability.
Key Performance Indicator (KPI)
| KPI | Values |
| ROE | 44.15% |
| ROCE | 55.71% |
| Debt/Equity | 1.19 |
| RoNW | 36.27% |
| PAT Margin | 6.52 |
| Price to Book Value | 5.29 |
Objects of the Issue
1) Setting Up a New Manufacturing Facility
- Location: Dahej, Bharuch, Gujarat
- Objective: To expand production capacity and meet growing demand for dyes and intermediates.
2) Funding Working Capital Requirements
- The company aims to support its growing operations and improve liquidity by strengthening its working capital base.
3) General Corporate Purposes
- This includes branding, marketing, strategic initiatives, administrative expenses, and other operational enhancements.
Strengths of Arunaya Organics Limited IPO
- Experienced Management Team: The company is led by promoters Mr. Vinod Agrawal and Ms. Shivali Agrawal, who bring domain knowledge and a professional management team.
- Diverse Product Portfolio: Arunaya Organics offers a wide range of dyes and intermediates, including reactive, acid, direct, basic, and solvent dyes, catering to various industries such as textiles, paper, leather, wood, and plastics.
- Strong Financial Performance: The company has demonstrated consistent growth in revenue and profitability over the past three fiscal years, with notable improvements in EBITDA margin and a reduction in the debt-to-equity ratio, indicating enhanced operational efficiency and financial stability.
- Strategic Expansion Plans: Proceeds from the IPO are intended to fund the establishment of a new manufacturing facility in Dahej, Bharuch, Gujarat, which is expected to increase production capacity and meet growing demand.
Risks of Arunaya Organics Limited IPO
- Customer Concentration: A significant portion of the company’s revenue is derived from a few customers without long-term contracts, which increases business uncertainty.
- Dependence on Group Company: The company relies on outsourcing manufacturing activities to its group company, Chinmay Chemicals Private Limited, which poses operational and quality risks.
- Raw Material Price Volatility: The lack of long-term agreements with raw material suppliers may lead to supply disruptions or price fluctuations, affecting operations and margins.
- SME Listing Constraints: Being listed on the NSE EMERGE platform may result in lower liquidity and higher volatility compared to mainboard listings, potentially impacting investor exit opportunities.
Investors should weigh these strengths and risks carefully when considering participation in the Arunaya Organics Limited IPO. As always, it’s advisable to consult with a financial advisor to assess how this investment aligns with individual risk tolerance and investment objectives.
Arunaya Organics Limited Contact Details
Registered Office
- Address: C-8, Phase-II, GIDC Naroda, Ahmedabad – 382330, Gujarat, India
- Company Secretary: +91 7779018214
- Chief Financial Officer: +91 7779018264
- General Contact: +91 7779018165
- Email: info@arunayaorganics.com
- Website: www.arunayaorganics.com
Registrar & Transfer Agent (RTA)
Bigshare Services Private Limited
- SEBI Registration Number: INR000001385
Address: S6-2, 6th Floor, Pinnacle Business Park, Mahakali Caves Road, Next to Ahura Centre, Andheri (East), Mumbai – 400093, Maharashtra, India
- Phone: 022-6263 8200
- Fax: 022-6263 8299
- Email: ipo@bigshareonline.com
- Investor Grievance Email: investor@bigshareonline.com
- Website: www.bigshareonline.com
- Contact Person: Asif Sayyed
Arunaya Organics IPO Registrar
The Registrar for the Arunaya Organics Limited IPO is Bigshare Services Private Limited, responsible for managing the IPO process, including application processing, allotment, and investor communications.
Registrar Contact Details
- Company: Bigshare Services Private Limited
- SEBI Registration Number: INR000001385
- Contact Person: Asif Sayyed
- Address: S6-2, 6th Floor, Pinnacle Business Park, Mahakali Caves Road, Next to Ahura Centre, Andheri (East), Mumbai – 400093, Maharashtra, India
- Phone: +91-22-6263 8200
- Fax: +91-22-6263 8299
- Email: ipo@bigshareonline.com
- Investor Grievance Email: investor@bigshareonline.com
- Website: www.bigshareonline.com
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