Bookbuilding IPO | ₹36 Cr | Listed at NSE SME | Fri, Feb 14, 2025 - Tue, Feb 18, 2025
Royal Arc Electrodes IPO is a book build issue of ₹36.00 crores. The issue is a combination of fresh issue of 0.18 crore shares aggregating to ₹21.60 crores and offer for sale of 0.12 crore shares aggregating to ₹14.40 crores.
Royal Arc Electrodes IPO bidding started from Feb 14, 2025 and ended on Feb 18, 2025. The allotment for Royal Arc Electrodes IPO was finalized on Feb 19, 2025. The shares got listed on NSE SME on Feb 24, 2025.
Royal Arc Electrodes IPO price band is set at ₹120 per share. The lot size for an application is 1,200. The minimum amount of investment required by an retail is ₹1,44,000 (1200 shares) (based on upper price). The minimum lot size for investment in HNI is 2 lots (2,400 shares), amounting to ₹2,88,000.
Fedex Securities Pvt.Ltd. is the book running lead manager and Kfin Technologies Ltd. is the registrar of the issue. The Market Maker of the company is Shreni Shares Ltd..
Refer to Royal Arc Electrodes IPO RHP for detailed Information.
IPO Open
Fri, Feb 14, 2025
IPO Close
Tue, Feb 18, 2025
Issue Price
₹120 per share
Market Cap (Pre-IPO)
₹133.20 Cr
| IPO Date | 14 to 18 Feb, 2025 |
| Listed on | Mon, Feb 24, 2025 |
| Face Value | ₹10 per share |
| Price Band | ₹114 to ₹120 |
| Issue Price | ₹120 per share |
| Lot Size | 1,200 Shares |
| Sale Type | Fresh capital cum OFS |
| Issue Type | Bookbuilding IPO |
| Listing At | NSE SME |
| Total Issue Size | 30,00,000 shares (agg. up to ₹36 Cr) |
| Reserved for Market Maker | 1,53,600 shares Shreni Shares Ltd. (agg. up to ₹2 Cr) |
| Fresh Issue (Ex Market Maker) | 16,46,400 shares (agg. up to ₹20 Cr) |
| Offer for Sale | 12,00,000 shares of ₹10 (agg. up to ₹14 Cr) |
| Net Offered to Public | 28,46,400 shares (agg. up to ₹34 Cr) |
| Share Holding Pre Issue | 93,00,200 shares |
| Share Holding Post Issue | 1,11,00,200 shares |
| NSE Symbol | ROYALARC |
| ISIN | INE0EO401019 |
Royal Arc Electrodes IPO comprises a total issue size of 30,00,000 shares. The net offer to the public is 28,46,400 shares, after excluding 1,53,600 shares allotted on a firm basis. Of the Net offer 14,22,000 (49.96%) are allocated to QIB, 4,06,800 (14.29%) allocated to NII 10,17,600 (35.75%) allocated to RII.
| Investor Category | Shares Offered | % of Net Issue | % of Total Issue |
|---|---|---|---|
| QIB Shares Offered | 14,22,000 | 49.96% | 47.40% |
| − Anchor Investor Shares Offered | 8,40,000 | 28.00% | |
| − QIB (Ex. Anchor) Shares Offered | 5,82,000 | 19.40% | |
| NII (HNI) Shares Offered | 4,06,800 | 14.29% | 13.56% |
| Retail Shares Offered | 10,17,600 | 35.75% | 33.92% |
| Firm Reservations | |||
| Market Maker Shares Offered | 1,53,600 | 5.12% | |
| Total Shares Offered | 30,00,000 | 100.00% | 100.00% |
Investors can bid for a minimum of 1,200 shares and in multiples thereof.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1,200 | ₹1,44,000 |
| Retail (Max) | 1 | 1,200 | ₹1,44,000 |
| HNI (Min) | 2 | 2,400 | ₹2,88,000 |
Royal Arc Electrodes IPO raises ₹10.08 crore from anchor investors. Royal Arc Electrodes IPO Anchor bid date is February 13, 2025.
📝 Anchor Investors Letter (PDF)
| Bid Date | Thu, Feb 13, 2025 |
| Shares Offered | 8,40,000 |
| Anchor Portion (₹ Cr.) | 10.08 |
| Anchor lock-in period end date for 50% shares (30 Days) | Fri, Mar 21, 2025 |
| Anchor lock-in period end date for remaining shares (90 Days) | Tue, May 20, 2025 |
Incorporated in 1996, Royalarc Electrodes Limited is engaged in the business of manufacturing of welding consumables such as, welding electrodes, flux cored wire, MIG/TIG wires.
The company is 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.
The company is also involved in trading ancillary and incidental products such as wheels, electro slag, welding flux-cored wire, electro slag strip cladding, saw flux, and TIG/MIG wires.
The company manufactures products using copper-coated wire, MS strips, MS wire, SS strips, SS wire, nickel wire, and ferro alloy powder at a state-of-the-art facility spread 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.
Products:
As of December 31, 2024, the company has a total workforce of 144 permanent employees.
Competitive Strength:
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 55.69 | 52.25 | 43.85 | 42.48 |
| Total Income | 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 |
| Reserves and Surplus | 36.15 | 32.97 | 28.53 | 18.96 |
| Total Borrowing | 2.02 | 0.20 | 1.42 | 7.81 |
| Amount in ₹ Crore | ||||
The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:
| # | Issue Objects | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Funding towards the expansion of the existing manufacturing facility situated at Village Zaroli, Umbergaon Valsad, Gujarat, Bharat | 4.89 |
| 2 | Funding of working capital requirements of the Company | 14.00 |
| 3 | General Corporate Purposes | 0.55 |
| KPI | Mar 31, 2024 |
|---|---|
| ROE | 32.85% |
| ROCE | 37.73% |
| RoNW | 28.21% |
| PAT Margin | 11.95% |
| Price to Book Value | 2.64 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (₹) | 12.82 | 5.72 |
| P/E (x) | 9.36 | 20.98 |
| Promoter Holding | 99.99% | 72.96% |
| Market Cap | ₹133.20 Cr. |
The Royalarc Electrodes IPO is subscribed 1.6 times on February 18, 2025 6:20:00 PM (Day 3). The public issue subscribed 2.2 times in the retail category, 1.04 times in the QIB category, and 0.92 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | Subscription (times) | Shares Offered | Shares bid for | Total Application |
|---|---|---|---|---|
| QIB | 1.04 | 5,60,400 | 5,84,400 | 3 |
| NII* | 0.92 | 4,45,200 | 4,11,600 | 65 |
| Retail | 2.2 | 10,00,800 | 22,05,600 | 1,838 |
| Total | 1.6 | 20,06,400 | 32,01,600 | 1,906 |
Total Application : 1,906
*Market Maker portion is not included to NII/HNI.
| # | Issue Expenses | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Book Running Lead Manager Fees | 0.25 |
| 2 | Fees payable to the Registrar to the Offer, Legal Advisors, Advisor to the Offer, Advertisement Expenses, Printing and Distribution of issue stationery Brokerage, Selling, Commission and upload fees for SCSBs, and fees payable to the Sponsor Bank(s) for Bids made by UPI Bidders. Brokerage and selling commission and bidding charges for Members of the Syndicate, Registered Brokers, RTAs and CDP | 0.95 |
| 3 | Regulators including Stock Exchange | 0.20 |
| 4 | Others, if any (including Underwriting Commission, Market making, advisory fees, marketing expenses, fees payable to auditor, chartered engineer, concurrent auditor, miscellaneous expenses and others etc.) | 2.20 |
| Price Details | NSE SME |
|---|---|
| Final Issue Price | ₹120.00 |
| Open | ₹120.00 |
| Low | ₹120.00 |
| High | ₹122.50 |
| Last Trade | ₹121.30 |
Lead Manager Reports
Royal Arc Electrodes IPO is a SME IPO of 30,00,000 equity shares of the face value of ₹10 aggregating up to ₹36 Crores. The issue is priced at ₹120 per share. The minimum order quantity is 1200.
The IPO opens on Fri, Feb 14, 2025, and closes on Tue, Feb 18, 2025.
Kfin Technologies Ltd. is the registrar for the IPO. The shares are proposed to be listed on NSE SME.
Zerodha customers can apply online in Royal Arc Electrodes IPO using UPI as a payment gateway. Zerodha customers can apply in Royal Arc Electrodes IPO by login into Zerodha Console (back office) and submitting an IPO application form.
Steps to apply in Royal Arc Electrodes IPO through Zerodha
Visit Zerodha IPO Application Process Review for more detail.
The Royal Arc Electrodes IPO opens on Fri, Feb 14, 2025 and closes on Tue, Feb 18, 2025.
Royal Arc Electrodes IPO lot size is 1200, and the minimum amount required for application is ₹1,44,000.
You can apply in Royal Arc Electrodes IPO online using either UPI or ASBA as a payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO Application is offered by brokers who don't offer banking services. Read more detail about applying IPO online through Zerodha, Upstox, 5Paisa, Nuvama, HDFC Bank, and SBI Bank.
The finalization of Basis of Allotment for Royal Arc Electrodes IPO will be done on Wednesday, February 19, 2025, and the allotted shares will be credited to your demat account by Thu, Feb 20, 2025. Check the Royal Arc Electrodes IPO allotment status.
The Royal Arc Electrodes IPO listing date is on Mon, Feb 24, 2025.
