Aritas Vinyl, a manufacturer of artificial leather (PU synthetic and PVC-coated leather) used in automotive interiors and fashion, is in the middle of its four-day bidding window (January 16–20). By the end of its first day of trading, the IPO was subscribed 0.44 times overall. Retail interest stood at 0.26x, while Non-Institutional Investors (NII) showed slightly higher traction at 0.70x.

The company aims to raise ₹37.52 crore through a combination of a fresh issue (₹32.89 crore) and an offer for sale (₹4.63 crore). The funds are primarily intended for working capital requirements (₹20.45 crore) and setting up a solar power project (₹4.26 crore) to lower energy costs at its Ahmedabad plant.

Despite the company's strong revenue growth—climbing from ₹51.42 crore in FY23 to ₹98.02 crore in FY25—the grey market remains silent. The current GMP of ₹0 indicates that market participants expect the shares to list close to the upper price band of ₹47.

Key IPO Details & Timetable

*Note: Retail investors are required to bid for a minimum of 2 lots (6,000 shares) for this issue.

Important Note for Investors

Financial Performance: The company has shown a healthy Return on Equity (ROE) of 31.23% and a PAT margin of 4.23% in FY25. However, some analysts view the P/E of 15.93x (post-issue) as slightly aggressive for an SME in a fragmented textile segment.

Working Capital Intensity: A major portion of the IPO proceeds is for working capital, highlighting the cash-intensive nature of the synthetic leather business where credit cycles can be long.

Market Maker: Giriraj Stock Broking is the market maker, and Interactive Financial Services is the lead manager. Some seasoned investors on forums like Chittorgarh have expressed caution due to the past listing performance of issues handled by this lead manager.

Final Bidding: The IPO closes tomorrow at 5:00 PM. If you are applying via UPI, ensure your mandate is approved before the deadline.