Salt-free dyes maker Arunaya Organics files RHP, IPO to open between April 29-May 2

Arunaya Organics IPO

Gujarat-based dyes and intermediaries manufacturer Arunaya Organics has filed its red herring prospectus before the capital market regulator on April 22 seeking to raise funds via initial public offering (IPO).

This would be the third IPO in the SME segment for the month of April, opening for subscription on April 29 and closing on May 2.

Arunaya Organics plans to raise Rs 33.99 crore via a public issue, which consists of fresh issuance of equity shares of 52.6 lakh shares worth Rs 30.5 crore and an offer-for-sale of 6 lakh shares worth Rs 3.48 crore by promoter Shivali Agrawal. The company has reserved 2.96 lakh shares for the market maker RK Stockholding.

The price band for the offer has been fixed at Rs 55-58 per share.

Arunaya Organics, which commenced operations in the dye industry in 2010, supplies reactive, acid, direct, basic, and solvent dyes, and dye intermediates for paper industry and textile dyeing. The company has an annual capacity of approximately 30 metric tonne per annum.

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The company will spend Rs 11.8 crore out of fresh issue proceeds for setting up a new manufacturing facility at Dahej, Gujarat, Rs 9 crore for working capital requirements, and the remaining IPO proceeds for general corporate purposes.

Arunava Organics competes with listed entities like Vipul Organics, Mahickra Chemicals, and Ducol Organics & Colours.

The merchant banker handling the public issue is Unistone Capital.

The IPO share allotment will get finalised by May 5 and the trading in Arunaya Organics will commence on the NSE Emerge effective May 7.