New Delhi, May 7 (KNN) Shares of dyes manufacturer Arunaya Organics made a tepid market debut on the NSE SME platform today, May 7.
The company’s shares listed at Rs 30.10 per share, representing a significant discount of Rs 28.90 or 48 percent against the issue price of Rs 58 per share.
The listing performance fell considerably short of grey market expectations, where the unlisted shares were trading flat at the upper band price of Rs 58 per share prior to the official debut, according to sources monitoring unofficial market activity.
The Rs 33.99 crore SME IPO consisted of a fresh issue of 5.26 million equity shares and an offer for sale (OFS) where promoter Shivali Agrawal divested 0.6 million equity shares.
The public issue opened for subscription on April 29, 2025, and closed on May 2, 2025, with share allotment finalised on May 5, 2025.
Despite the weak listing, the IPO had received a decent response from investors, achieving an overall subscription of 2.53 times.
The retail investors’ portion saw the strongest demand with 4.33 times subscription, while non-institutional investors (NIIs) subscribed 1.49 times and qualified institutional buyers (QIBs) subscribed 1.01 times. Bigshare Services served as the registrar and Unistone Capital acted as the sole book-running lead manager for the issue.
According to the red herring prospectus, Arunaya Organics plans to allocate Rs 11.78 crore from the net proceeds toward establishing a new manufacturing facility in Dahej, Bharuch, Gujarat, and Rs 9 crore for meeting working capital requirements.
The remaining funds will be utilised for general corporate purposes. The company will not receive any proceeds from the OFS component.
Incorporated in July 2010, Arunaya Organics operates as both a trader and manufacturer of various dyes and their intermediaries.
The company supplies a range of products including reactive, acid, direct, basic and solvent dyes, as well as dye intermediaries from its manufacturing unit in Ahmedabad, Gujarat, which has an annual capacity of 30 metric tonnes.
For the fiscal year 2023-24, Arunaya Organics reported a revenue from operations of Rs 62.23 crore, marking a 17.95 percent decline from Rs 75.85 crore in the previous financial year.
However, the company’s profit after tax grew substantially by 133.86 percent year-on-year to Rs 4.05 crore compared to Rs 1.73 crore in the preceding period.
(KNN Bureau)
