Aritas Vinyl IPO Opens Friday with Zero Grey Market Premium, Priced at ₹40-47 Per Share
Aritas Vinyl's ₹38 crore IPO opens Friday with ₹40-47 price band and zero grey market premium, indicating flat listing expectations. The artificial leather manufacturer's issue comprises ₹32.90 crore fresh capital and ₹4.60 crore secondary sale, with 56.5% allocated to retail investors requiring minimum ₹2.82 lakh investment. The company reported ₹98 crore revenue and ₹4.10 crore profit in FY25, operating 7.80 million square meter capacity facility serving automotive and export markets.
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Aritas Vinyl's initial public offering opens for subscription on Friday amid muted grey market sentiment, with the ₹38 crore book-built issue showing zero premium expectations. The artificial leather manufacturer has priced its shares in a band of ₹40 to ₹47 per share for listing on the BSE SME platform.
IPO Structure and Timeline
The public offering comprises a mixed structure of fresh capital and secondary sale by existing shareholders. The subscription period runs from Friday through January 20, with listing scheduled for January 23 on the BSE SME platform.
| Component | Amount |
|---|---|
| Fresh Issue | ₹32.90 crore |
| Offer for Sale | ₹4.60 crore |
| Total Issue Size | ₹37.50 crore |
| Price Band | ₹40-47 per share |
| Listing Date | January 23 |
Allocation and Investment Details
The IPO structure favors retail participation with a significant allocation framework. The minimum application size requires substantial investment from retail participants.
| Category | Allocation |
|---|---|
| Retail Investors | 56.50% |
| Non-Institutional Investors | 37.50% |
| Qualified Institutional Buyers | Under 1.00% |
| Minimum Application | 6,000 shares |
| Investment Required | ₹2.82 lakh (at upper price) |
Grey Market Sentiment
The IPO currently trades with zero grey market premium, indicating no immediate listing gains expectations from unofficial market participants. This neutral sentiment suggests market participants are pricing the issue at fair value without anticipating significant upside on listing day.
Business Operations and Financials
Aritas Vinyl operates in the artificial leather manufacturing sector, producing PU synthetic leather and PVC-coated leather products. The company serves automotive, fashion accessories, and interior design sectors while maintaining export operations to UAE, USA, Greece, and Sri Lanka. Its Ahmedabad manufacturing facility operates with an annual capacity of approximately 7.80 million square meters.
The company's recent financial performance shows steady operations with total income of ₹98 crore in FY25 and profit after tax of ₹4.10 crore. For the five months ended August 2025, the company reported profit of ₹2.40 crore.
| Financial Metric | Performance |
|---|---|
| Total Income (FY25) | ₹98.00 crore |
| Profit After Tax (FY25) | ₹4.10 crore |
| Profit (5 months to Aug 2025) | ₹2.40 crore |
| Manufacturing Capacity | 7.80 million sq meters |
Fund Utilization
Proceeds from the fresh issue will support the company's expansion and operational requirements. The primary allocation focuses on working capital enhancement and infrastructure development, particularly in renewable energy initiatives.
- Working capital requirements funding
- Capital expenditure for solar power project
- General corporate purposes
The zero grey market premium reflects cautious market sentiment, though subscription response and broader market conditions may influence actual listing performance when trading begins on January 23.
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