The Aritas Vinyl IPO opened for subscription on Friday, but the grey market is showing a 0% premium, suggesting the shares may start trading flat at the issue price.
IPO Overview
The issue is priced between ₹40 and ₹47 per share and will close on January 20. It is set to list on the BSE SME platform on January 23.
Pricing and Grey Market Sentiment
With a grey market premium (GMP) of 0%, unofficial traders are not expecting any immediate price gain. While GMP can shift as the listing date approaches, the current flat sentiment points to a modest opening.
Subscription Structure
- Total issue size: about ₹37.5 crore
- Fresh issue: ₹32.9 crore (used for working capital, a solar power project, and general corporate needs)
- Offer for sale: ₹4.6 crore by existing shareholders
- Retail allocation: 56.5% of net offer
- Non‑institutional investors: 37.5%
- Qualified institutional buyers: just under 1%
The minimum retail application is 6,000 shares, costing ₹2.82 lakh at the top of the price band.
Company Business
Aritas Vinyl manufactures and trades artificial leather, including PU synthetic leather and PVC‑coated leather. Its products serve automotive, fashion accessories, and interior design sectors, and the company exports to the UAE, USA, Greece, and Sri Lanka. The Ahmedabad plant can produce around 7.8 million sq m per year.
Financial Snapshot
- FY25 total income: ₹98 crore
- FY25 profit after tax: ₹4.1 crore
- Profit for the five months ended August 2025: ₹2.4 crore
What It Means for Retail Investors
Given the zero GMP and the sizable retail allocation, the IPO could be an entry point for small investors who are comfortable with a potential flat or modestly volatile debut. The proceeds earmarked for a solar project also add a sustainability angle to the business.
Disclaimer
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before investing.