Arunaya Organics IPO makes subdued debut, shares list at 48% discount on NSE SME

Arunaya Organics share price: Shares of dye manufacturer Arunaya Organics made a weak debut on the NSE SME platform Emerge on Wednesday, May 7.

Shares of Arunaya Organics opened at ₹30.10 apiece on the NSE SME platform Emerge. The stock was listed at a discount of 48.1% or ₹27.9 compared to the issue price of ₹58 per share.

As the minimum bid size for retail investors was 2,000 equity shares, allottees suffered a loss of ₹55,800 per lot at the time of listing.

Arunaya Organics IPO was subscribed 2.53 times during the three-day bidding period. The retail investors' portion was booked 4.33 times, while the qualified institutional buyers (QIBs) part was subscribed 1.01 times. The non-institutional investors (NIIs) subscribed their quota 1.49 times.

The ₹33.99 crore initial public offering was a combination of a fresh issuance of ₹40.51 crore and an offer for sale (OFS) of six lakh shares worth ₹3.48 crore.

The funds generated from the IPO are intended to be used for establishing a manufacturing facility, funding working capital requirements, and general corporate purposes.

Arunaya Organics is engaged in manufacturing and trading dyes for the textile and paper sectors. It delivers high-quality products across various industries such as textiles, plastics, paints, food processing and mining. Its products are available in several forms, such as standardised spray-dried and tray-dried powders, crude, granules, reverse osmosis-treated products and salt-free.

The net profit was ₹4.06 crore in the financial year 2023-24 as against ₹1.73 crore in FY23. Revenue from operations stood at ₹62.79 crore in FY24, compared to ₹76.37 crore in the previous fiscal year.