Aritas Vinyl IPO Subscription Reaches 30% on First Day
The initial public offering of Aritas Vinyl Limited started on Friday, January 16. Investors can apply for the issue until Tuesday, January 20. The company has set a price band of ₹40 to ₹47 per equity share. Each share carries a face value of ₹10.
Investment Details and Company Profile
Investors must bid for a minimum of 3,000 equity shares. They can then apply in multiples of 3,000 shares after that. Aritas Vinyl specializes in manufacturing technical textiles. The company produces artificial leather using advanced Transfer Coating Technology.
This material is often called PU synthetic leather or PVC-coated leather. The firm makes artificial leather, PVC vinyl, and related products. These items serve multiple industries including automotive, fashion, and interior design.
Market Reach and Financial Performance
The company distributes its products to wholesalers and distributors. It also supplies manufacturers directly. Aritas Vinyl exports to several international markets. These include Greece, Oman, UAE, Sri Lanka, and the United States. The company also sends products to Special Economic Zones in India.
Aritas Vinyl promotes synthetic leather as an alternative to traditional animal leather. The company reported total revenue of ₹98 crore for FY25. Its profit after tax reached ₹4.10 crore during the same period.
For the five months ending August 2025, the firm recorded a profit of ₹2.40 crore. These figures indicate stable operational performance.
IPO Structure and Peer Comparison
The public offering includes a fresh issue of shares worth ₹32.9 crore. Existing shareholders will also sell shares valued at ₹4.6 crore. This brings the total IPO size to approximately ₹37.5 crore.
The company will use proceeds from the fresh issue for working capital requirements. Funds will also support capital expenditure for a solar power project. Remaining amounts will serve general corporate purposes.
According to the red herring prospectus, listed peers include Mirza International Ltd. This company trades at a P/E ratio of 39.71. Another peer, Amin Tannery Ltd, shows a P/E of 58.67.
Subscription Status and Investor Allocation
The IPO subscription reached 30% on the first day. Data from chittorgarh.com shows this status as of 12:30 PM IST. Investors placed bids for 22,68,000 shares against 75,81,000 shares on offer.
The retail portion achieved 7% subscription. Non-institutional investors booked 65% of their allocation. Qualified institutional buyers have not yet entered the bidding process.
The IPO structure strongly favors retail investors. Approximately 56.5% of the net offer is reserved for them. Non-institutional investors receive 37.5% allocation. Qualified institutional buyers get just under 1% of the issue.
A small portion is also allocated for the market maker. Interactive Financial Services Ltd acts as the book running lead manager. Bigshare Services Pvt Ltd serves as the registrar for the issue. Giriraj Stock Broking Pvt Ltd functions as the Market Maker.
Grey Market Premium and Listing Expectations
The grey market premium for Aritas Vinyl IPO stands at ₹9 today. Considering the upper price band of ₹47, this suggests an estimated listing price of ₹56 per share. This represents a potential gain of 19.15% over the IPO price.
Grey market premium reflects investor willingness to pay above the issue price. It often indicates market sentiment before official listing.
Important Note: Investment views and recommendations come from individual analysts or broking firms. They do not represent official positions. Investors should consult certified experts before making any financial decisions.
