Arunaya Organics Ltd

About Arunaya Organics Limited IPO

Arunaya Organics Limited IPO is an IPO of up to 58,60,000 equity shares. It consists of an offer for sale of up to 6,00,000 equity shares and a fresh issue of up to 52,60,000 equity shares. The shares will be allotted on TBA. The credit of shares to the Demat account will take place on TBA, and the initiation of refunds will take place on TBA.

Objective of Arunaya Organics Limited IPO

• Setting up a new manufacturing facility at D-3/26/3, Dahej III, Industrial Estate, Dahej-392 130, Vagra, Bharuch, Gujarat (Proposed Greenfield Project).

• Funding the working capital requirements of the company.

• General corporate purposes.

Industry Outlook

India holds a strong position in the international trading of chemicals and ranks 9th in exports and 6th in imports globally (excluding pharmaceuticals). India is the world leader in dye manufacturing, accounting for 16%–18% of global dyestuff exports. Indian dyes are exported to over 90 countries. From April to September 2023–24 (Provisional), the export of agrochemicals stood at US$ 170 crores, dyes at US$ 86.7 crores, and other dye intermediates at US$ 6.2 crores. The import of agrochemicals was US$ 73.8 crores, dyes were US$ 12 crores, and other dye intermediates were US$ 52.2 crores during the same period.

Company Information

Arunaya Organics Limited started its operations in the dye industry in 2010. They engage in the trading, distribution, and manufacturing of various types of dyes and their intermediates. They supply a comprehensive range of products, including reactive, acid, direct, basic, and solvent dyes, as well as dye intermediates. Their products are available in multiple forms, such as standardised spray-dried and tray-dried powders, granules, crude, reverse osmosis-treated, and salt-free variants. Additionally, they provide specialty performance chemicals tailored for the paper industry and textile dyeing. Their diverse product portfolio is designed to cater to both domestic and international markets.

Risks of Arunaya Organics Limited IPO

• Their existing and proposed manufacturing units are located in Gujarat. Any localised social unrest, natural disaster, service disruption, or other unforeseen events in or around Gujarat could lead to production interruptions or shutdowns at their facilities. Such disruptions could have a materially adverse effect on their business and financial condition.

• They are dependent on a third party, i.e., Chinmay Chemicals Private Limited (Chinmay), their group company, for supplying their products. Any disruptions at such production or manufacturing facility and their supply chain arrangements, or failure to adhere to the relevant quality standards, may harm their reputation, business, and financial condition.

• They do not have any long-term agreements with their raw material suppliers. If they face difficulties in obtaining the necessary quality and quantity of raw materials in a timely manner and at fair prices, or if they fail to secure them altogether, it could harm their business, financial performance, and cash flow.

Anchor Investor Information

The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Unistone Capital Private Limited

Registrar for the IPO is Bigshare Services Private Limited

Business Model

The company earns its revenue through trading, distribution, and manufacturing activities of different types of dyes and its intermediates.

Company Growth Trajectory

The company's revenue from operations for the financial year 2023-24 is ₹62.23 crores. This represents a decrease of ₹13.62 crores, or 17.95%, compared to the previous financial year's revenue of ₹75.85 crores. The reason for the decrease in revenue is majorly due to decline in export sales due to less global demand for our industry products. Other income in the financial year 2023-24 increased by 8.06%, reaching ₹0.56 crores, compared to ₹0.52 crores in the financial year 2022-23. The profit after tax (PAT) for the financial year 2023-24 reached ₹4.08 crores, marking a notable increase from ₹1.75 crores in the financial year 2022-23. In the financial year 2023-24, PAT constituted 6.50% of the total revenue, in contrast to 2.29% in the fiscal year 2022-23.

Company Market Position

Offering quality products at attractive prices is a key aspect of maintaining and expanding the company’s relationships with its customers. They intend to continue enhancing their operational efficiencies to increase economies of scale, better absorb their fixed costs, reduce their other operating costs, and strengthen their competitive position. They intend to continue competing vigorously to capture more market share and manage their growth in an optimal way.

How To Check Allotment Status of Arunaya Organics Limited IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Bigshare Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Arunaya Organics Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Bigshare Services Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Arunaya Organics Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for Dr Agarwal’s Health Care Ltd IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI