Royal Arc Electrodes Limited IPO
NSE SMEListed On: Feb 24, 2025 at ₹ 120.0
₹ 288000 /2400 Shares
*Min Investment
14 Feb, 2025
Open Date18 Feb, 2025
Close Date19 Feb, 2025
Allotment Date24 Feb, 2025
Listing DateRoyal Arc Electrodes IPO Issue Details
- Issue Price ₹114-120 per equity share
- Face Value ₹10 Per Equity Share
- Total Issue Size 30,00,000 shares(aggregating up to ₹36 crore)
- Fresh Share 18,00,000 shares(aggregating up to ₹21.6 crore)
- Offer For Sale 12,00,000 shares(aggregating up to ₹14.4 crore)
- Listing at NSE SME
- List Price 120.0
- Listing Date 2025-02-24
- Lead Manager Fedex Securities Pvt Ltd
- Registrar Kfin Technologies Limited
Market Lot Size
Investors can bid for a minimum of 1200 shares and in multiples thereof. The following table depicts the minimum and maximum investment by Retail Investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1200 | ₹1,44,000 |
| Retail(max) | 1 | 1200 | ₹1,44,000 |
| NII (min) | 2 | 2,400 | ₹2,88,000 |
Royal Arc Electrodes IPO Reservation
Royal Arc Electrodes IPO offers total 30,00,000 shares. Out of which 5,60,400 (18.68%) allocated to QIB, 4,45,200 (14.84%) allocated to NII,10,00,800 (33.36%) allocated to RII, NA (NA%) allocated to employees and 8,40,000 (28%) allocated to Anchor investors.
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 8,40,000 (28%) | |
| Market Maker Shares Offered | 1,53,600 (5.12%) | |
| QIB Shares Offered | 5,60,400 (18.68%) | |
| NII (HNI) Shares Offered | 4,45,200 (14.84%) | |
| Retail Shares Offered | 10,00,800 (33.36%) | |
| Total Shares Offered | 30,00,000 (100%) |
Royal Arc Electrodes IPO Details
Royal Arc Electrodes Limited IPO is an SME IPO, priced at ₹114-120 per equity share. The equity shares have a face value of ₹10 Per Equity Share each and will be listed on the NSE SME platform. The IPO comprises a total issue of 30,00,000 equity shares, aggregating up to ₹36 crores..
The IPO bidding window is open from Feb 14, 2025 to Feb 18, 2025. The allotment is expected to be finalized on Feb 19, 2025, and the tentative listing date is Feb 24, 2025.
The minimum lot size for Retail investors is 1200 shares, with a minimum investment of ₹1,44,000. For HNIs, the minimum application size is 2 lots , amounting to ₹ 2,88,000.
Fedex Securities Pvt Ltd is acting as the lead manager to the issue. The registrar of the IPO is Kfin Technologies Limited, and Shreni Shares Limited will act as the market maker for this issue.
Royal Arc Electrodes IPO Subscription Analysis And Details
| As on | QIB / NII | Retail | Total |
|---|---|---|---|
| Shares Offered / Reserved | 5,60,400 / 4,45,200 | 10,00,800 | 20,06,400 |
Day 1 14-02-25 06:00 PM | 0.00 / 0.79 x | 0.26 x | 0.14 x |
Day 2 17-02-25 06:00 PM | 0.74 / 0.13 x | 0.90 x | 0.68 x |
Day 3 18-02-25 06:00 PM | 1.04 / 1.27 x | 2.20 x | 1.67 x |
Royal Arc Electrodes Valuations
Royal Arc Electrodes Company Financials
| 31-Mar-24 | 31-Mar-23 | 31-Mar-22 | |
|---|---|---|---|
| Assets | 52.25 | 43.85 | 42.48 |
| Revenue | 100.99 | 98.03 | 64.82 |
| Profit After Tax | 11.93 | 9.57 | 2.12 |
| Net Worth | 42.27 | 30.35 | 20.78 |
| Reserves & Surplus | 32.97 | 28.53 | 18.96 |
| Total Borrowing | 0.2 | 1.42 | 7.81 |
About Royal Arc Electrodes Company
Incorporated in 1996, Royalarc Electrodes Limited is involved in the business of manufacturing of welding consumables such as, welding electrodes, flux cored wire, MIG/TIG wires.
The company used welding consumables for welding tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, and more, across industries such as railways, roadways, airports, refineries, shipyards, mining, sugar, telecom, thermal power stations, and PEB sectors.
It trades ancillary and incidental products, such as wheels, electro slag, welding flux-cored wire, electro slag strip cladding, saw flux, and TIG/MIG wires.
It produces products in copper-coated wire, MS strips, MS wire, SS strips, SS wire, nickel wire, and ferro alloy powder at its high-tech unit sprawling over 269,198 sq. ft. in Zaroli, Umbergaon, Gujarat.
The company manufactures standardized and customized products, supplying domestically and exporting to 20+ countries. Products are certified by American Bureau of Shipping (ABS), Indian Boilers Regulation (IBR), Bureau of Indian Standard (BIS), with inspections outsourced to NABL-accredited laboratories.
As of December 31, 2024, the company has a total workforce of 144 permanent employees.
Royal Arc Electrodes - Promoter(s)
Bipin Sanghvi
Tarulata Sanghvi
Hardik Sanghvi
Swagat Sanghvi
Pre Issue Share Holding : 99.99%
Post Issue Share Holding : 72.96%
Royal Arc Electrodes IPO - Issue Objectives
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.
Royal Arc Electrodes IPO - Peers Comparison
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio | Financial statements |
|---|---|---|---|---|---|---|---|
| Royal Arc Electrodes Limited | 12.82 | 12.82 | 45.45 | N/A | 28.21 | 2.67 | Standalone |
| Esab India Ltd. | 105.9 | 105.9 | 198.87 | 46.94 | 53.25 | 26.53 | Consolidated |
| Ador Welding Ltd. | 46.46 | 46.46 | 266.49 | 21.08 | 17.44 | 5.15 | Consolidated |
| Gee Ltd. | 4.95 | 4.95 | 78.61 | 29.17 | 6.29 | 3.27 | Consolidated |
| Rasi Electrodes Ltd. | 29 | 1.02 | 10.47 | 28.43 | 9.83 | 2.1 | Consolidated |
Notes:
- Considering the nature and size of the business of the company, the peers are not strictly comparable. However, the above companies are included for broad comparison.
- The P/E Ratio for the peer group has been computed based on the closing market price of respective equity shares as on February 06, 2025, sourced from stock exchange websites, divided by the basic/diluted EPS as applicable.
- Return on Net Worth (RoNW) is computed as net profit after tax divided by the closing net worth. Net worth has been computed as the sum of share capital and reserves and surplus.
- NAV is computed as the closing net worth divided by the number of equity shares outstanding as on March 31, 2024.
Contact Details
Royal Arc Electrodes
72 B, Bombay Talkies Compound, S.V. Road Malad West, Mumbai, , 400064
+91 78880 00553
Registrar Contact Details
Kfin Technologies Limited
04067162222, 04079611000
Royal Arc Electrodes IPO - FAQs
Ans. Royal Arc Electrodes Limited IPO is a SME IPO. The issue is priced at ₹114-120 per equity share. The minimum order quantity is 1200 Shares. The IPO opens on Feb 14, 2025, and closes on Feb 18, 2025. Kfin Technologies Limited is the registrar for the IPO. The shares are proposed to be listed on NSE SME.
Ans. The Royal Arc Electrodes Limited IPO opens on Feb 14, 2025 and closes on Feb 18, 2025.
Ans. You can track the real-time subscription numbers using the links below:
Ans. The size of Royal Arc Electrodes Limited IPO is 30,00,000 shares(aggregating up to ₹36.00 Cr).
Ans. The Royal Arc Electrodes Limited IPO price band is set between ₹114-120 per equity share.
Ans. To apply for Royal Arc Electrodes Limited IPO, follow the steps given below:
- - Open the IPO Ji App or Website
- - Find Royal Arc Electrodes Limited IPO in the List of IPOs
- - Press Apply Button
- - Select Your Demat Account
- - Select Your Shares Quantity and Submit
- - Track Your IPO Status
Ans. The share allotment date of Royal Arc Electrodes Limited IPO is Feb 19, 2025.
Ans. The Royal Arc Electrodes Limited IPO will be listed on Feb 24, 2025.
Ans. Follow the steps to check the Royal Arc Electrodes Limited IPO allotment status online.
