Royalarc Electrodes Ltd. was established on January 15, 1996. The company manufactures welding consumables like electrodes, flux-cored wire, and MIG/TIG wires, used in welding tanks, boilers, heavy structures, and more across industries such as railways, refineries, shipyards, and thermal power stations
| Bidding Dates |
|---|
| 14 Feb 2025 - 18 Feb 2025 |
| Subscription |
|---|
| 1.55x Oversubscribed |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| ₹1,36,800 | 1 | 1 | 1200 | 3.0 M | ₹114 - ₹120 | 72.96 % | ₹342.0 M - ₹360.0 M | RHP DOC |
Royal Arc Electrodes IPO SUBSCRIPTION STATUS
18 Feb '25Royal Arc Electrodes IPO overall subscription rate was 1.55 times the total available shares
Royal Arc Electrodes IPO retail subscription rate was 2.92 times in the retail segment
Royal Arc Electrodes IPO non-institutional investor subscription rate was 1.74 times in the non-institutional investor category
Royal Arc Electrodes IPO Qualified Institutional Bidder subscription rate was 0.54 times the available shares for Qualified Institutional Bidder
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers |
|---|---|---|---|
| Category Reservation | 35% | 15% | 50% |
18 Feb 2025 (Day 3) | 2.92x | 1.74x | 0.54x |
17 Feb 2025 (Day 2) | 1.16x | 0.18x | 0.39x |
14 Feb 2025 (Day 1) | 0.33x | 0.05x | - |
Royal Arc Electrodes FINANCIALS
| Period | Net Profit (Rs in millions) | Revenue from Operations (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) | Margins |
| H1FY25 | 31.8 | 456.0 | 9.5 | -30.5 | 12.4% |
| FY24 | 119.3 | 997.9 | 56.3 | 5.4 | 18.2% |
| FY23 | 95.7 | 969.4 | 125.9 | 114.1 | 15.9% |
| FY22 | 21.2 | 629.1 | 24.0 | 12.7 | 8.8% |
Royal Arc Electrodes IPO SUBSCRIPTION STATUS DETAILS
Royal Arc Electrodes had 3.0 M shares on offer
Royal Arc Electrodes IPO offer price was in the range ₹114 - ₹120
Royal Arc Electrodes IPO minimum Investment was ₹136800
Royal Arc Electrodes IPO issue size was ₹ 342.0 M - ₹ 360.0 M
Royal Arc Electrodes had a minimum lot size of 1200 Shares per application
Royal Arc Electrodes NUMBER OF SHARES ON OFFER
Royal Arc Electrodes IPO IMPORTANT DATES
| Issue Open Date | 14 Feb 2025 |
| Issue close Date | 18 Feb 2025 |
| Allotment Date | 19 Feb 2025 |
| Refund Date | 20 Feb 2025 |
| Demat Account Credit Date | 20 Feb 2025 |
| Listing Date | 24 Feb 2025 |
| Listing on Exchange(s) | NSE |
| Royal Arc Electrodes Allotment Status | Exchange |
Royal Arc Electrodes IPO subscription opened on 14 Feb 2025, and closed on 18 Feb 2025
IPO allotment for Royal Arc Electrodes was finalized on Wednesday, 19 Feb 2025
IPO listing for Royal Arc Electrodes was on NSE on Monday, 24 Feb 2025
Royal Arc Electrodes IPO LISTING GAINS
| Issue Price (adjusted) | 120.0 |
| Listing Open Price | 120.0 |
| Listing Close Price | 121.3 |
| Listing Gain% | 0.0% |
| Current Gain% | 30.0% |
Royal Arc Electrodes Peer
| Stock | Stock Price | Market Cap (Rs crore) | PE TTM | PEG TTM | PS TTM | ROE% | ROA% | Annual Revenue (Rs crore) | Annual Revenue Growth % | Annual Net Profit (Rs crore) | Annual Net Profit Growth % | EPS TTM | EPS TTM Growth % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Royal Arc Electrodes Ltd. | 156 | 173.2 | 19.2 | -0.8 | 1.7 | 12.5 | 11.1 | 102.3 | 1.3 | 9 | -24.5 | 8.1 | -24.5 |
| Esab India Ltd. | 5631.5 | 8668.6 | 41.9 | 2.4 | 5.7 | 48.1 | 29.6 | 1514.2 | 9.6 | 206.7 | 17.8 | 134.3 | 17.8 |
| Shivalik Bimetal Controls Ltd. | 920.9 | 5304.8 | 50 | 1.7 | 8.6 | 19.9 | 15.1 | 583.1 | 11.9 | 95.9 | 24.4 | 18.4 | 29.3 |
| Ador Welding Ltd. | 1483.4 | 2581.5 | 22.7 | 0.1 | 2.2 | 14.8 | 9.8 | 1158.2 | 1.5 | 82 | 36.5 | 65.2 | 213.2 |
| Diffusion Engineers Ltd. | 441 | 1650.5 | 32.8 | 0.8 | 4.1 | 12.4 | 9.8 | 421.6 | 22.4 | 50.3 | 40.1 | 13.4 | 40.1 |
| Gala Precision Engineering Ltd. | 1036.4 | 1328.3 | 35.8 | 1 | 4.1 | 12.1 | 9.5 | 319.9 | 32.1 | 35.5 | 32.2 | 29 | 37.2 |
Royal Arc Electrodes INFORMATION ON IPO ISSUE
About Royal Arc Electrodes
Royalarc Electrodes Ltd. was established on January 15, 1996. The company manufactures welding consumables like electrodes, flux-cored wire, and MIG/TIG wires, used in welding tanks, boilers, heavy structures, and more across industries such as railways, refineries, shipyards, and thermal power stations
Object of the Issue
- Funding towards the expansion of their manufacturing facility situated at Village Zaroli, Umbergaon Valsad, Gujarat
- Funding the working capital requirements of the company
- General corporate purposes
Royal Arc Electrodes - PROMOTERS
| Name |
|---|
| Bipin Sanghvi |
| Tarulata Sanghvi |
| Hardik Sanghvi |
| Swagat Sanghvi |
Royal Arc Electrodes Lead Manager of the Issue
Fedex Securities Private Limited
mb@fedsec.in
Royal Arc Electrodes Registrar to the issue
Kfin Technologies Limited
rael.ipo@kfintech.com
Royal Arc Electrodes Strengths
Pan Indian presence
The company sells products across India through a network of dealers, distributors, and direct sales to customers. A sales team of nine employees manages relationships, appoints distributors, and handles orders and collections, ensuring wide market reach
Client relationship
With over 25 years in welding consumables, the company has supplied products to diverse industries like railways, refineries, and shipyards. A focus on quality, customization, and timely delivery has helped build long-term customer relationships
Royal Arc Electrodes Risks
Depend on domestic market
The company's revenue heavily relies on the domestic market. Any adverse changes in domestic market conditions could negatively impact its business, operations, and financial health
Expansion risks
The proposed expansion of the manufacturing facility carries risks that could impact growth, cash flows, business prospects, and financial stability
Payment defaults
Despite monitoring customer creditworthiness and maintaining allowances for doubtful receivables, there is a risk of losses if customers fail to pay as expected
IPO FAQs
This IPO consists of an offer for sale of up to Rs 14.4 crore, of 1,200,000 shares. It also consists of a fresh issue of Rs 21.6 crore.
The promoters of the company are Bipin Sanghvi, Tarulata Sanghvi, Hardik Sanghvi and Swagat Sanghvi.
The category allocation of qualified institutional buyers is 50.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 35.0%.
The price band of the IPO is Rs 114.0 - 120.0.
The IPO application opens on Feb 14, 2025 and closes on Feb 18, 2025.
The minimum lot size for the IPO is 1200. The maximum lot size for the IPO is 1200.
For all category investors, the minimum application amount for this IPO is Rs. 136,800.0, the maximum value for this IPO is Rs 144,000.0.
This IPO will be allotted on Feb 19, 2025.
The refund will be credited to your account on Feb 20, 2025.
The allotted shares will be credited to your demat on Feb 20, 2025.
Royalarc Electrodes Ltd.’s shares listed on the stock exchanges on Feb 24, 2025.