The Royalarc Electrodes IPO is set to open on February 14, 2025, and will close on February 18, 2025. This book-built IPO aims to raise around ₹36.00 crores, comprising a fresh issue of ₹21.60 crores and an offer for sale (OFS) of up to 12,00,000 equity shares with a face value of ₹10 each.
Royalarc Electrodes IPO Price Band & Quota
- Price Band: ₹114 to ₹120 per share
- Retail Quota: 35%
- QIB Quota: 50%
- HNI Quota: 15%
Royalarc Electrodes IPO Allotment & Listing Date
- IPO Allotment Date: February 19, 2025
- IPO Listing Date: February 21, 2025
- Stock Exchange: NSE
Royalarc Electrodes Financial Performance
- Revenue in 2024: ₹100.99 crores (vs ₹98.03 crores in 2023)
- Profit in 2024: ₹11.93 crores (vs ₹9.57 crores in 2023)
Royalarc Electrodes IPO Date & Price Band Details
| Category | Details |
|---|---|
| IPO Open Date: | February 14, 2025 |
| IPO Close Date: | February 18, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹114 to ₹120 Per Share |
| Issue Size: | Approx ₹36.00 Crores |
| Fresh Issue: | Approx ₹21.60 Crores |
| Offer for Sale: | Approx 12,00,000 Equity Shares |
| Issue Type: | Book Built Issue |
| IPO Listing: | NSE SME |
| Retail Quota: | Not more than 35% |
| QIB Quota: | Not more than 50% |
| NII Quota: | Not more than 15% |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Royal Arc Electrodes: A Comprehensive Overview Risks & Strengths
Royal Arc Electrodes Ltd., established in 1996, is a leading manufacturer and supplier of welding consumables in India. With a strong presence in both domestic and international markets, the company has carved a niche for itself by offering a wide range of high-quality products.
Company Overview:
- Product Portfolio: Royal Arc specializes in welding consumables, including welding electrodes, MIG/TIG wires, flux-cored wires, stainless steel flux-cored wires, and strip cladding.
- Manufacturing: The company boasts a state-of-the-art manufacturing facility spanning 25082.61 sq meters in Gujarat, India. This facility is equipped with the latest technology and adheres to stringent quality control measures to ensure products meet international standards.
- Global Presence: Royal Arc has a strong global footprint, exporting its products to over 45 countries worldwide. This demonstrates the company’s commitment to quality and its ability to compete in the international market.
- Certifications: Royal Arc is an ISO 9001:2015 and CE-certified company, highlighting its dedication to maintaining high standards in its operations and products.
- Mission and Vision: The company’s mission is to become a global leader in welding solutions by offering innovative products and services. Its vision focuses on expanding its international presence while building strong relationships with clients.
Strengths:
- Wide Product Range: Royal Arc offers a diverse range of welding consumables, catering to various industry needs.
- Quality Focus: The company’s emphasis on quality is evident in its certifications and manufacturing processes.
- Global Reach: Royal Arc’s extensive export network demonstrates its strong market presence and competitiveness.
- Experienced Team: The company is led by a team of skilled engineers and technicians with extensive industry knowledge.
- State-of-the-art Facility: The modern manufacturing facility enables efficient production and ensures high product quality.
Risks:
- Competition: The welding consumables industry is competitive, with both domestic and international players. Royal Arc needs to continuously innovate and maintain its quality to stay ahead.
- Raw Material Prices: Fluctuations in raw material prices can impact the company’s profitability.
- Technological Advancements: The welding industry is constantly evolving. Royal Arc needs to invest in research and development to keep pace with technological advancements.
- Economic Conditions: Global and domestic economic conditions can affect demand for welding consumables, impacting the company’s sales.
- Regulatory Changes: Changes in environmental or trade regulations can pose challenges to the company’s operations.
Royalarc Electrodes IPO Market Lot
The Royalarc Electrodes IPO has a minimum lot size of 1,200 shares, requiring an application amount of ₹1,44,000. Investors interested in this IPO subscription must apply for at least one lot, making it essential to plan their investment accordingly.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1200 | ₹1,44,000 |
| Retail Maximum | 1 | 1200 | ₹1,44,000 |
| S-HNI Minimum | 2 | 2,400 | ₹2,88,000 |
Royalarc Electrodes IPO Allotment & Listing Dates
Royalarc Electrodes IPO is set to open for subscription on February 14, 2025, and will close on February 18, 2025. Investors eagerly waiting for the Royalarc Electrodes IPO allotment status can expect the finalization on February 19, 2025. The much-anticipated Royalarc Electrodes IPO listing date is scheduled for February 21, 2025. Stay updated with the latest details on Royalarc Electrodes IPO, subscription status, and listing price to make informed investment decisions.
| Type | Date |
|---|---|
| IPO Open Date: | February 14, 2025 |
| IPO Close Date: | February 18, 2025 |
| Basis of Allotment: | February 19, 2025 |
| Refunds: | February 20, 2025 |
| Credit to Demat Account: | February 20, 2025 |
| IPO Listing Date: | February 21, 2025 |
Royalarc Electrodes IPO: Promoters
The Royalarc Electrodes IPO is backed by a strong promoter group, including Bipin Sanghvi, Tarulata Sanghvi, Hardik Sanghvi, and Swagat Sanghvi. Their leadership and expertise play a crucial role in the company’s growth and market positioning.
Royalarc Electrodes IPO Company Financial Report
Royalarc Electrodes IPO reported a revenue of ₹100.99 crores in 2024, marking an increase from ₹98.03 crores in 2023. The company’s profit surged to ₹11.93 crores in 2024, compared to ₹9.57 crores in 2023, reflecting strong financial growth.
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
|---|---|---|---|---|
| 2022 | ₹64.82 | ₹62.01 | ₹2.12 | ₹42.48 |
| 2023 | ₹98.03 | ₹84.98 | ₹9.57 | ₹43.85 |
| 2024 | ₹100.99 | ₹84.73 | ₹11.93 | ₹52.25 |
| September 2024 | ₹46.06 | ₹41.79 | ₹3.18 | ₹55.69 |
Royalarc Electrodes IPO Valuation – FY2024
| KPI | Values |
|---|---|
| ROE: | 32.85% |
| ROCE: | 37.73% |
| EBITDA Margin: | 18.16% |
| PAT Margin: | 11.95% |
| Debt to equity ratio: | 0.00 |
| Earning Per Share (EPS): | ₹12.82 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 28.21% |
| Net Asset Value (NAV): | ₹45.45 |
Royalarc Electrodes Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| ESAB India Limited | 105.90 | 46.94 | 53.25 | 198.87 | – Cr. |
| Ador Welding Limited | 46.46 | 21.08 | 17.44 | 266.49 | – Cr. |
| Gee Limited | 4.95 | 29.17 | 6.29 | 78.61 | – Cr. |
| Rasi Electrodes Limited | 1.02 | 28.43 | 9.83 | 10.47 | – Cr. |
Royalarc Electrodes IPO: Key Objectives of the Issue
The Royalarc Electrodes IPO aims to raise funds for strategic growth and operational efficiency. The key objectives of the issue include:
- Expansion of Manufacturing Facility: A significant portion of the funds will be utilized to enhance and upgrade the company’s manufacturing facility located in Village Zaroli, Umbergaon, Valsad, Gujarat, India. This expansion is expected to boost production capacity and efficiency.
- Working Capital Requirements: The IPO proceeds will support the company’s working capital needs, ensuring smooth business operations and sustainable growth.
- General Corporate Purposes: A part of the funds will be allocated for general corporate expenses, strengthening the company’s financial position and future expansion plans.
By addressing these objectives, Royalarc Electrodes IPO aims to position itself for long-term growth and improved operational efficiency in the welding and electrode manufacturing industry.
Royalarc Electrodes IPO Review
- Canara Bank
- DRChoksey FinServ
- Emkay Global
- Hem Securities
- IDBI Capital
- Marwadi Shares
- Nirmal Bang
- SBICAP Securities
- Sharekhan
- SMC Global
- Sushil Finance
- Swastika Investmart
- Ventura Securities
- Geojit
- Reliance Securities
- Capital Market
- BP Wealth
- ICICIdirect
- Choice Broking
Royalarc Electrodes IPO Registrar
KFin Technologies Limited
Phone: 04067162222, 04079611000
Email: rael.ipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/
Royalarc Electrodes IPO Lead Managers aka Merchant Bankers
- Fedex Securities Pvt Ltd
Royalarc Electrodes Company Address
Royalarc Electrodes Limited
72 B, Bombay Talkies Compound,
S.V. Road Malad West,
Mumbai, , 400064
Phone: +91 78880 00553
Email: cs@royalarc.in
Website: https://royalarc.in/
FAQs on Royalarc Electrodes IPO
The Royalarc Electrodes IPO will open on February 14, 2025, and close on February 18, 2025.
The IPO price band is set between ₹114 to ₹120 per share.
The IPO consists of a fresh issue of ₹21.60 crores and an Offer for Sale (OFS) of 12,00,000 equity shares.
The minimum lot size is 1,200 shares, requiring an investment of ₹1,44,000 for retail investors.
The IPO allotment status will be finalized on February 19, 2025.
The Royalarc Electrodes IPO is expected to list on the NSE SME platform on February 21, 2025.
The IPO funds will be utilized for:
Expansion of the manufacturing facility in Gujarat
Funding working capital requirements
General corporate purposes
The lead manager is Fedex Securities Pvt Ltd, and the registrar is KFin Technologies Limited.
The company reported a revenue of ₹100.99 crores and a profit of ₹11.93 crores in FY 2024, reflecting steady growth.
You can check the allotment status on the KFin Technologies website or through the NSE.
Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial, investment, or other professional advice.
