Aritas Vinyl IPO: Check GMP, Price Band, Subscription, and Other Details
Overview of Aritas Vinyl IPO
The Aritas Vinyl IPO is currently open for subscription, having launched on Friday, against a backdrop of muted grey market sentiment. With a total issue size of approximately Rs 38 crore, the stock is currently quoted at a grey market premium (GMP) of 0%, suggesting minimal expectations of a price surge upon listing.
Key Details of the IPO
– Issue Size: Rs 38 crore
– GMP: 0% (indicating expectations of a flat listing)
– Price Band: Rs 40 to Rs 47 per share
– Subscription Closing Date: January 20
– Listing Date: January 23 on BSE SME platform
The IPO is structured as follows:
– Fresh Issue: Rs 32.9 crore
– Offer for Sale: Rs 4.6 crore from existing shareholders
– Total: Approximately Rs 37.5 crore
Utilization of Proceeds
The funds from the fresh issue will primarily be allocated towards:
– Working capital requirements
– Capital expenditure for a solar power project
– General corporate purposes
Market Sentiment and Subscription Details
Currently, the grey market is reflecting low investor enthusiasm, as indicated by the 0% GMP. While grey market trends can change based on subscription response and broader market conditions, they serve as a directional indicator leading up to the listing date.
Subscription Breakdown
The IPO is designed to favor retail investors, with the following allocation:
– Retail Investors: 56.5% of the net offer
– Non-Institutional Investors: 37.5%
– Qualified Institutional Buyers: Under 1%
– Market Maker Portion: Allocated as well
Minimum Investment and Company Profile
– Minimum Application Size: 6,000 shares, equating to an investment of Rs 2.82 lakh at the upper end of the price band.
– Business Overview: Aritas Vinyl specializes in the manufacturing and trading of artificial leather products, including PU synthetic leather and PVC-coated leather. The company serves various sectors such as automotive, fashion accessories, and interior design, with exports to markets in the UAE, USA, Greece, and Sri Lanka.
– Manufacturing Capacity: Their facility in Ahmedabad boasts an annual production capability of approximately 7.8 million square meters.
Financial Performance
– Total Income (FY25): Rs 98 crore
– Profit After Tax (FY25): Rs 4.1 crore
– Profit for Five Months Ended August 2025: Rs 2.4 crore
Conclusion
The Aritas Vinyl IPO presents an opportunity for investors, particularly due to its focus on retail participation. However, with the grey market currently indicating a flat listing, potential investors should assess their strategies carefully before committing funds. Stay informed on the IPO’s progress and market sentiment as the closing date approaches.
(Disclaimer: Expert recommendations and views are independent and do not reflect the opinions of Economic Times.)