Royal Arc Electrodes IPO opens on February 14, 2025, and closes on February 18, 2025. This IPO is an SME IPO. The company is issuing 30,00,000 shares at a price band of ₹114-₹120 per share. The minimum lot size for an application is 1200 shares. The IPO aims to raise funds for working capital requirements, general corporate purposes, and to meet issue expenses. Royal Arc Electrodes manufactures welding electrodes and caters to various industries. The company’s registered office is in Gurugram, Haryana.
₹00
₹120
₹120.00
Expert Opinions
Royal Arc Electrodes IPO is presenting a mix of opportunities and risks for potential investors. Market sentiment towards the IPO will likely be influenced by the overall performance of the SME sector and investor appetite for new listings. Company strengths include a geographically spread distribution network, long-standing relationships with customers, and consistent financial performance. The company manufactures welding consumables such as welding electrodes, flux cored wire, and MIG/TIG wires.
Risks and challenges include the competitive landscape and potential fluctuations in raw material prices. Valuation analysis based on FY 2024 indicates an EPS of ₹12.82, a P/E ratio of 9.36, and a RoNW of 28.21%. Compared to peers like ESAB India and Ador Welding, Royal Arc’s RoNW appears competitive. From a long-term investment perspective, Royal Arc’s expansion plans and focus on industries like railways and infrastructure could offer growth potential.
Investor Considerations
Royal Arc Electrodes IPO offers an opportunity in the welding consumables industry, backed by steady financial performance and strong fundamentals. The company has a Price to Book Value of 2.64 and a PAT margin of 11.95% for FY 2024, reflecting a balanced valuation. The sector outlook remains positive, driven by increasing demand from infrastructure, construction, and industrial manufacturing.
Growth prospects are supported by the company’s expanding product portfolio, strong distribution network, and growing demand for welding solutions in domestic and export markets. However, risk factors include raw material price fluctuations, competition from established players, and cyclicality in the industrial sector. From an investment horizon perspective, Royal Arc Electrodes has the potential for steady growth, making it a viable option for long-term investors. However, investors should carefully evaluate the company’s market positioning and industry dynamics before making an investment decision.
| Date | GMP | Trend |
|---|---|---|
| 23 Feb 2025 13.14 | ₹00 | --- |
| 22 Feb 2025 11.51 | ₹00 | --- |
| 21 Feb 2025 18.30 | ₹00 | --- |
| 20 Feb 2025 19.21 | ₹00 | --- |
| 19 Feb 2025 10.51 | ₹00 | --- |
| 18 Feb 2025 11.11 | ₹00 | --- |
| 17 Feb 2025 11.13 | ₹00 | --- |
| 15 Feb 2025 11.28 | ₹00 | --- |
| 14 Feb 2025 10.39 | ₹00 | --- |
| 13 Feb 2025 18.15 | ₹00 | --- |
FAQs
The Grey Market Premium showed perfect accuracy in predicting Royal Arc Electrodes’ listing performance. The GMP of ₹0 predicted a flat listing at the issue price, and the stock listed exactly at ₹120 with no gains or losses. With zero prediction error, the GMP perfectly captured the flat listing sentiment, demonstrating complete accuracy in this case.
Royal Arc Electrodes IPO Current GMP is ₹00.
Royal Arc Electrodes IPO Expected Returns is 0.00%.
Royal Arc Electrodes IPO estimated listing price is ₹120.