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Royalarc Electrodes IPO

Open Sme
NSE 14 February - 18 February 2025
Royalarc Electrodes Limited IPO is a book build issue of 36 Cr. The issue is a combination of fresh issue of 1800000 shares aggregating to 21.6 Cr and offer for sale of 1200000 shares aggregating to 14.4 Cr. Royalarc Electrodes Limited IPO opened for subscription on Feb 14, 2025 and closed on Feb 18, 2025. The allotment for the this IPO was finalized on Feb 19, 2025. IPO was listed on NSE and BSE on Feb 24, 2025. Royalarc Electrodes Limited IPO is set issue price band at ₹114 to ₹120 per share.

Current GMP

₹0 (0.00%)

Price Band

₹ 114 – 120

Lot Size

1200

Issue Size

₹36 Cr

Minimum Investment

₹288000 (2400 Shares)

Listing Date

24 February 2025

Subscription

1.67x

About the Company

Royalarc Electrodes Limited is a company incorporated in Mumbai, Maharashtra, on January 15, 1996, as “Royalarc Electrodes Private Limited” under the Companies Act, 1956. It was later converted to a public limited company on March 9, 2005, and the name was changed to “Royalarc Electrodes Limited.” In June 2023, the company further changed its name to “Royal Arc Electrodes Limited.”

The company specializes in the manufacturing of welding consumables, including welding electrodes, flux-cored wire, MIG/TIG wires, and various ancillary products. These products are primarily used across industries such as railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom, and thermal power stations.

The company operates from a highly advanced manufacturing facility in Zaroli, Umbergaon, Gujarat, which spans 25,082.61 square meters. The facility is equipped with advanced machinery and quality assurance equipment to ensure products meet international standards. The company’s products undergo stringent testing and certification, including certifications from organizations like the American Bureau of Shipping (ABS), Indian Boilers Regulation (IBR), and Bureau of Indian Standards (BIS).

Royalarc Electrodes Limited manufactures and supplies welding products made from materials like MS strips, MS wire, SS strips, SS wire, nickel wire, and ferro alloy powder. The company's manufacturing processes include wire drawing, cutting, powder mixing, and baking. It has ISO 9001:2015 certification and caters to both domestic and international markets, exporting to over 20 countries.

The company’s raw materials are procured from domestic suppliers, and the cost of raw materials consumed accounted for a significant portion of its revenue over the past years.

In terms of products, the company offers various types of welding electrodes, flux-cored wires, and MIG/TIG wires, with each product serving different industries and applications. While MIG/TIG wires were historically manufactured in-house, the company has temporarily switched to trading these products based on market demand, with an installed manufacturing capacity of 60 MT per month for MIG/TIG wires.

The company is led by experienced promoters with deep knowledge of the welding consumable industry and has a workforce of 144 employees, including skilled labor and management. The business is characterized by strong client relationships, with a majority of its business coming from repeat clients.

Promoters

  1. Bipin Sanghvi
  2. Tarulata Sanghvi
  3. Hardik Sanghvi
  4. Swagat Sanghvi
Promoters Holding

Holding Pre Issue

99.99%

Holding Post Issue

72.96%

Objects of the Issue

The Company proposes to utilize the net proceeds from the Fresh Issue towards funding the following objects:

  1. Funding towards the expansion of the manufacturing facility situated at Village Zaroli, Umbergaon Valsad, Gujarat, Bharat
  2. Funding the working capital requirements of the Company
  3. 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.

Address / Contact Info

Royalarc Electrodes Limited
72 B, Bombay Talkies Compound, 
S.V. Road Malad West, Mumbai, 
Maharashtra, India, 400064

Phone: +91 78880 00553
Email: cs@royalarc.in
Website: https://royalarc.in/

IPO Snapshot

Face Value₹10 per share
Price Band₹ 114 – 120
Lot Size1200
Issue TypeBook-building IPO
Sale Type
Fresh Issue₹ 21.60 Cr
Offer for Sale₹ 14.40 Cr
Total Issue Size₹ 36.00 Cr
Listing AtNSE
Industry
Sector
QIB Quota18.68%
Retail Quota33.36%

Disclaimer: This data is for informational purposes only and does not constitute investment advice. Figures shown are illustrative sample data.

Frequently Asked Questions

Everything you need to know before applying to an IPO.

Royalarc Electrodes IPO is a Book-building IPO worth ₹36 crores. The price band is ₹114 to 120 per share. The IPO opens on Fri, Feb 14, 2025 and closes on Tue, Feb 18, 2025. It will be listed on BSE and NSE. Kfin Technologies Limited is the registrar.

The Royalarc Electrodes IPO opens on Fri, Feb 14, 2025 and closes on Tue, Feb 18, 2025

Royalarc Electrodes IPO Price Band is ₹114 to 120.

Royalarc Electrodes IPO lot size is 1200, and the minimum amount required for application is ₹288000.

The minimum investment for Royalarc Electrodes IPO is approximately ₹288000 based on the upper price band.

To apply for the Royalarc Electrodes IPO, investors can use the ASBA (Application Supported by Blocked Amount) process via their bank's net banking or apply through UPI using a registered broker or trading app. The IPO is available in retail, HNI, and institutional investor categories. Investors must select the lot size, enter bid details within the price band, and submit their application before the IPO closing date of Tue, Feb 18, 2025. After submission, funds are blocked until the basis of allotment of Royalarc Electrodes IPO is finalised.

Royalarc Electrodes IPO issue size is ₹36 crores.

Royalarc Electrodes IPO allotment date is Sat, Jun 27, 2026.

The registrar for Royalarc Electrodes IPO is Kfin Technologies Limited. Investors can go to Kfin Technologies Limited website for IPO allotment status, refund processing, and other queries related to Royalarc Electrodes IPO through their official website or helpline.