Arunaya Organics Limited IPO opens from April 29 to May 2, 2025, with an issue size of ₹33.99 crore. The price band is set at ₹55–₹58 per share. Funds raised will be used for working capital, general corporate purposes, and public listing benefits. Investors can apply via NSE SME platform.
Core Business Focus :- Arunaya Organics Limited, established in 2010 and headquartered in Ahmedabad, Gujarat, is a specialty chemical manufacturer focusing on dyes and intermediates. The company is currently undergoing its Initial Public Offering (IPO), open from April 29 to May 2, 2025, with a price band of ₹55–₹58 per share .
Product Portfolio :-Arunaya Organics specializes in the production and export of various dyes and intermediates, including:
- Acid, Basic, Direct, Reactive, and Solvent dyes
- Dye intermediates and specialty chemicals
- Salt-free dyes
- Standardized spray-dried and tray-dried powders, granules, and reverse osmosis-treated items
These products cater to industries such as textiles, paints, plastics, mining, food processing, wood, paper, and leather .
Manufacturing & Quality Assurance :-The company’s manufacturing facility in Ahmedabad is ISO 9001 certified, emphasizing quality, safety, and environmental responsibility .
Strengths
- Experienced Leadership: Led by Mr. Vinod Agrawal, the company benefits from seasoned management with extensive domain knowledge .
- Diverse Product Range: A wide array of dye products and intermediates allows the company to serve multiple industries effectively
- Research & Development: Continuous innovation through R&D enhances product quality and meets evolving customer needs
- Quality Assurance: Commitment to quality is evident through ISO certification and adherence to stringent manufacturing standards .
Risks
- Customer Concentration: A significant portion of revenue depends on a few customers, posing a risk if any major client is lost .
- Supply Chain Dependence: Reliance on Chinmay Chemicals Private Limited, a group company, for product supply could impact operations if disruptions occur .
- Raw Material Price Volatility: Fluctuations in raw material prices can affect profitability .
- Lack of Long-Term Supplier Agreements: Absence of long-term contracts with raw material suppliers may lead to supply uncertainties .
- IPO-Related Risks: Being the company’s first public offer, there is uncertainty regarding active trading and share price post-listing .
Arunaya Organics Limited demonstrates strong operational capabilities, a diverse product portfolio, and experienced leadership. However, potential investors should consider risks related to customer concentration, supply chain dependencies, and market uncertainties associated with the IPO. A thorough evaluation of these factors is essential before making investment decisions.
Financial Analysis of Arunaya Organics Limited (FY2022-FY2024)
Revenue
- FY2024: ₹62.23 crore
- FY2023: ₹75.85 crore
- FY2022: ₹61.55 crore
Analysis: Revenue dipped by ~18% in FY2024 compared to FY2023, primarily due to a possible drop in order volume or price realization. However, it remains higher than FY2022 levels, indicating mid-term stability.
Profit
- FY2024: ₹4.06 crore
- FY2023: ₹1.73 crore
- FY2022: ₹1.33 crore
Analysis: Profit grew significantly in FY2024 despite lower revenue, suggesting improved cost control, better margins, or operational efficiency.
Total Assets
- FY2024: ₹45.04 crore
- FY2023: ₹38.62 crore
- FY2022: ₹34.36 crore
Analysis: Assets have steadily grown each year, reflecting reinvestment in business infrastructure and increasing financial strength.
Summary
- FY2024 showed strong profit growth despite revenue decline, signaling operational efficiency.
- Assets are increasing steadily, showing long-term growth intent.
- The IPO could help further strengthen working capital and expansion.
