Arunaya Organics Files RHP, Set to Launch SME IPO Between April 29 and May 2

Arunaya Organics, a Gujarat-based company engaged in the production of dyes and dye intermediaries, has filed its red herring prospectus with the capital markets regulator on 22 April. 

The company is aiming to raise ₹33.99 crore through an Initial Public Offering (IPO) on the SME platform. Scheduled to open for subscription on 29 April and close on 2 May, the IPO marks the third SME offering for the month.

IPO Structure and Objectives

The public issue comprises a fresh issue of 52.6 lakh equity shares valued at ₹30.5 crore and an offer-for-sale (OFS) of 6 lakh equity shares worth ₹3.48 crore by promoter Shivali Agrawal. Out of the total, 2.96 lakh shares have been reserved for market maker RK Stockholding. The price band for the IPO is set between ₹55 and ₹58 per share.

The company plans to utilise ₹11.8 crore from the fresh issue for setting up a new manufacturing facility in Dahej, Gujarat. An additional ₹9 crore will be allocated for meeting working capital needs, while the rest of the proceeds will be directed towards general corporate purposes.

Company Overview and Market Presence

Established in 2010, Arunaya Organics specialises in supplying a variety of dyes, including reactive, acid, direct, basic, and solvent dyes, primarily catering to the paper and textile industries. With an annual manufacturing capacity of around 30 metric tonnes, the company is a competitive player in the segment.

Arunaya Organics competes with other listed firms such as Vipul Organics, Mahickra Chemicals, and Ducol Organics & Colours. The IPO is being managed by Unistone Capital, and post-allotment finalisation on 5 May, the shares are expected to list on NSE Emerge on 7 May.

Read More: Dev Accelerator Files Revised IPO Draft Papers With SEBI.

Conclusion

Arunaya Organics’ upcoming IPO signifies a strategic move to expand its manufacturing capabilities and strengthen its financial base. Its listing on NSE Emerge will mark another step in its journey within the Indian chemical and dye manufacturing industry.

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