Royal Arc Electrodes IPO Details
The key details of Royal Arc Electrodes’s IPO are outlined below, covering all crucial aspects from price range to investment requirements and regulatory documents.
| IPO Size | ₹36.00 Cr |
| Price Range | ₹114 - ₹120 |
| Retail Quota | 35% |
| QIB Quota | 50% |
| NII Quota | 15% |
| Employee Discount | -- |
| Listing at | NSE |
| Minimum Quantity | 1200 |
| Investment (cut-off price) | ₹1,44,000 |
| Pre IPO Promotor Holding | 99.99% |
| Post IPO Promotor Holding | 72.96% |
| DHRP Draft | Click Here |
| RHP Draft | Click Here |
| Anchor Investors List | Click Here |
Royal Arc Electrodes IPO Timelines
The IPO process for Royal Arc Electrodes includes key dates for participants to know. The timeline allows for strategic planning and participation, helping investors stay informed and engaged throughout the entire process.
14/02/2025
Start Date18/02/2025
End Date20/02/2025
Refund Initiation20/02/2025
Credit of Shares to Demat Ac24/02/2025
Listing DateRoyal Arc Electrodes IPO Lot Size
The Royal Arc Electrodes IPO has a fixed lot size of 1,200 shares, at an upper price band of ₹120 per share, requiring ₹144,000 per lot for retail investors. For HNI investors, the minimum application is 2,400 shares (2 lots) amounting to ₹288,000.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1200 | ₹1,44,000 |
| Retail Maximum | 1 | 1200 | ₹1,44,000 |
| HNI Minimum | 2 | 2400 | ₹2,88,000 |
Royal Arc Electrodes IPO Subscription Status
The subscription status for Royal Arc Electrodes IPO shows market demand across different investor categories, providing valuable insights into the offering’s performance. You can track real-time subscription data below.
| QIB | NII | Retail | EMP | Total |
|---|---|---|---|---|
| 1.04x | 0.92x | 2.20x | -- | 1.60x |
IPO Performance on Listing Day
On the listing day (February 24, 2025), Royal Arc Electrodes made a flat debut on the stock exchange. The stock opened at ₹120, at par with its issue price. During the trading session, the stock showed minimal movement, reaching a high of ₹122.50 while maintaining support at its opening price. The shares ended their first trading day at ₹121.30, securing a marginal gain of 1.1% over the issue price, indicating a steady but cautious market response to this welding electrodes manufacturer.
| Opening Price | Closing Price | Day High | Day Low |
|---|---|---|---|
| ₹120.00 | ₹121.30 | ₹122.50 | ₹120.00 |
Royal Arc Electrodes IPO Company Financials
Royal Arc Electrodes reports robust performance in FY2024 with Total Income of ₹100.99 crores, managing expenses at ₹84.73 crores, and achieving a strong PAT (Profit After Tax) of ₹11.93 crores, demonstrating significant growth potential ahead of its public offering.
| Year | Total Income | Total Expense | PAT |
|---|---|---|---|
| FY 2022 | ₹64.82 | ₹62.01 | ₹2.12 |
| FY 2023 | ₹98.03 | ₹84.98 | ₹9.57 |
| FY 2024 | ₹100.99 | ₹84.73 | ₹11.93 |
| FY 2025 (6 M) | ₹46.06 | ₹41.79 | ₹3.18 |
About Company
Royalarc Electrodes Limited, founded in 1996, specializes in manufacturing welding consumables such as welding electrodes, flux-cored wire, and MIG/TIG wires. These products are utilized across various industries, including railways, refineries, shipyards, and thermal power stations, for applications like welding tanks, boilers, and pressure vessels. In addition to these consumables, the company also trades ancillary products like wheels, electro slag, and welding flux-cored wire, and offers solutions for industries ranging from telecom to mining and sugar.
The company operates a high-tech manufacturing facility covering 269,198 sq. ft. in Zaroli, Umbergaon, Gujarat, where it produces a wide range of products including copper-coated wire, MS/SS strips, and ferro alloy powder. Royalarc Electrodes manufactures both standardized and customized products for domestic and international markets, exporting to over 20 countries. Its products are certified by respected bodies such as the American Bureau of Shipping (ABS) and Bureau of Indian Standards (BIS), with inspections conducted by NABL-accredited laboratories. As of December 31, 2024, the company employs 144 permanent staff.
| Incorporation Date | Sector | Managing Director |
|---|---|---|
| 1996 | Manufacturing | Bipin Sanghvi |
Know Before Investing
Royal Arc Electrodes IPO Strengths
- Royal Arc is led by a skilled team of engineers and technicians focused on efficiency and excellence.
- The company has been in operation since 1996, providing them with significant industry experience.
- Royal Arc manufactures welding consumables such as welding electrodes, flux-cored wire, and MIG/TIG wires, catering to various welding needs.
- The company is a manufacturer of welding apparatus products used across diverse industries.
- The company’s products are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, and PEB sectors.
- These include a geographically spread distribution network, long-standing relationships with customers across industries, consistent financial performance, and experienced promoters and a strong management team.
- Long-standing relationships with customers across industries indicates reliability and customer satisfaction.
- In addition to manufacturing, the company also trades ancillary products like wheels and welding flux.
Royal Arc Electrodes IPO Risks
- Investments in equity and equity-related securities involve a degree of risk, and investors could lose their entire investment. Investors should carefully read the risk factors before making an investment decision.
- Investment depends on market for the securities of the company.
- The company has a limited operating history, which might make it difficult to assess future performance.
- The comparison of the company with other companies shows differences, therefore making assessment a potential challenge.
- The company depends on revenue in order to gain revenue.
- Maintaining relationships with key customers and suppliers is crucial.
- Certain historical corporate and secretarial records are untraceable and regulatory proceedings or actions could be initiated against it in the future which may impact its financial condition.
- Covenants present can limit the company’s operational flexibility.
- Regulatory requirements and changes may have an affect on the ability to create profit and operate the company effectively.
Swot Analysis for Royal Arc Electrodes IPO
Strengths
Wide product range, Strong industry reputation, Serves diverse industries
Weaknesses
High competition, Dependent on raw material, Potential overreliance on key clients
Opportunities
Infrastructure development, Growing welding industry, Export market expansion
Threats
Intense competition, Raw material price volatility, Economic downturn
Company Details
Royalarc Electrodes Limited
72 B, Bombay Talkies Compound, S.V. Road Malad West, Mumbai, Maharashtra, India, 400064
Website: https://royalarc.in/
Phone: +91 78880 00553
Email: [email protected]
IPO Registar Details
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: [email protected]
Website: https://kosmic.kfintech.com/ipostatus/
FAQs
The key objectives of Royal Arc Electrodes IPO are:
- Funding towards the expansion of the manufacturing facility situated at Village Zaroli, Umbergaon Valsad, Gujarat, Bharat
- Funding the working capital requirements of the Company
- General corporate purposes
- The Company will not receive any proceeds from the Offer for Sale and the proceeds from the Offer for Sale will not form part of the Net Proceeds.
Fedex Securities Pvt Ltd is the book-running lead managers for the Royal Arc Electrodes IPO.
Royal Arc Electrodes IPO has growth potential in the expanding welding industry, driven by infrastructure and manufacturing growth. The company’s market position and increasing demand for welding electrodes could provide long-term prospects, depending on competition and operational execution.
The issue price for the Royal Arc Electrodes IPO is set between ₹114 and ₹120 per share.
To invest in one lot of Royal Arc Electrodes IPO, you need ₹1,36,800 at the lower price band (₹114 per share) or ₹1,44,000 at the upper price band (₹120 per share) for a lot size of 1200 shares.
Royal Arc Electrodes IPO shares are scheduled to be listed on the National Stock Exchange (NSE) on February 24, 2025.
Refund/unblocking of funds for Royal Arc Electrodes IPO will begin on February 20, 2025. ASBA/UPI blocks will be removed within 1 working day.
You can sell shares your Royal Arc Electrodes IPO shares on listing day (February 24, 2025) after they are credited to your demat account. If you want to sell in the pre-open market, the timing for that session is from 9:00 AM to 9:15 AM. Otherwise, you can sell after 10:00 AM during regular trading hours.