Royalarc Electrodes IPO
Open SmeCurrent 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
- Bipin Sanghvi
- Tarulata Sanghvi
- Hardik Sanghvi
- 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:
- 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.
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
IPO Timeline (Tentative)
IPO Open Date
Friday, 14 February 2025
IPO Close Date
Tuesday, 18 February 2025
Basis of Allotment
Wednesday, 19 February 2025
Initiation of Refunds
Thursday, 20 February 2025
Credit of Shares to Demat
Thursday, 20 February 2025
Listing Date
Monday, 24 February 2025 — NSE & BSE
Important Dates
Open Date
14 February 2025
Close Date
18 February 2025
Basis Of Allotment
19 February 2025
Listing Date
24 February 2025
Financial Performance (₹ in Crores)
| Particular | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 55.69 | 52.25 | 43.85 | 42.48 |
| Revenue | 46.06 | 100.99 | 98.03 | 64.82 |
| Profit After Tax | 3.18 | 11.93 | 9.57 | 2.12 |
| Net Worth | 45.45 | 42.27 | 30.35 | 20.78 |
| Reserve & Surplus | 36.15 | 32.97 | 28.53 | 18.96 |
| Total Borrowings | 2.02 | 0.2 | 1.42 | 7.81 |
EPS Pre
12.82%
EPS Post
5.72%
P/E Pre
9.36
P/E (Post Issue)
20.98x
Company Financial Information
KPI Information (₹ in Crores)
| Particular | KPI as of Mar 31, 2024. |
|---|---|
| ROE % | 32.85 |
| ROCE % | 37.73 |
| Debt / Equity | 0 |
| RoNW % | 28.21 |
| PbW | 0 |
| Pat Margin % | 11.95 |
Return Ratio
IPO Reservations
| Category | Shares Offered | Shares Offered % | Max Allotee |
|---|---|---|---|
| Anchor Investors | 840000 | 28 | 0 |
| Market Maker | 153600 | 5.12 | 0 |
| Qualified Institutions | 560400 | 18.68 | 0 |
| Non-Institutional | 445200 | 14.84 | 0 |
| Retail Investors | 1000800 | 33.36 | 0 |
| Total | 3000000 | 100 | 0 |
Subscription Status ( Tue, 18 Feb 25 12:58 PM)
| Category | Shares Offered | Shares Bid For | Subscription (x) |
|---|---|---|---|
| Qualified Institutions | 560400 | 584400 | 1.04x |
| Non-Institutional | 445200 | 565200 | 1.27x |
| Retail Investors | 1000800 | 2205600 | 2.2x |
| Total | 2006400 | 3355200 | 1.67x |
Subscription figures are updated periodically and may change until issue closing. Data reflects bids placed across exchanges.
Peer Comparision
No Peer Comparision Available
Lot Size & Investment Details
| Application | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 1,200 | 144,000.00 |
| Retail (Max) | 1 | 1,200 | 144,000.00 |
| S-HNI (Min) | 2 | 2,400 | 288,000.00 |
Registrar
Kfin Technologies Limited
04067162222, 04079611000
reachus@kfintech.com
https://www.kfintech.com
Book Running Lead Managers
- Fedex Securities Private Limited
RHP Document
DRHP Document
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.