Royalarc Electrodes IPO
- IPO Date14 Feb, 2025 to 18 Feb, 2025
- Listing Date21 Feb, 2025
- Face Value₹10 per share
- Issue Price₹114 to ₹120 per share
- Lot Size1200 Shares
- Minimum Investment₹1,44,000
- Listing AtNSE SME
- Total Issue Size30,00,000 Shares
(aggregating up to ₹36.00 Cr) - Fresh Issue18,00,000 Shares
(aggregating up to ₹21.60 Cr)
- Offer for Sale12,00,000 Shares
(aggregating up to ₹14.40 Cr) - Issue TypeBook Built Issue IPO
- Share holding pre issue93,00,200
- Shareholding post issue1,11,00,200
IPO Dates
Closing Date
18 Feb, 2025
Initiation of Refunds
20 Feb, 2025
Listing Date
21 Feb, 2025
14 Feb, 2025
Opening Date
19 Feb, 2025
Basis of Allotment
20 Feb, 2025
Credit of Shares
Royalarc Electrodes Lot Size
Investors can bid for a minimum of 1200 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Max) | 1 | 1200 | ₹1,44,000 |
| S-HNI (Max) | - | - | - |
| S-HNI (Min) | 2 | 2400 | ₹2,88,000 |
| Retail (Min) | 1 | 1200 | ₹1,44,000 |
| B-HNI (Min) | - | - | - |
Royalarc Electrodes Promoter Holding
Bipin Sanghvi, Tarulata Sanghvi, Hardik Sanghvi and Swagat Sanghvi are the promoters of the company.
| Pre Issue Share Holding | Post Issue Share Holding |
|---|---|
| 99.99% | 72.96% |
Royalarc Electrodes COMPANY INFORMATION
Royalarc Electrodes IPO is a book built issue of Rs 36.00 crores. The issue is a combination of fresh issue of 18.00 lakh shares aggregating to Rs 21.60 crores and offer for sale of 12.00 lakh shares aggregating to Rs 14.40 crores. Royalarc Electrodes IPO opens for subscription on February 14, 2025 and closes on February 18, 2025. The allotment for the Royalarc Electrodes IPO is expected to be finalized on Wednesday, February 19, 2025. Royalarc Electrodes IPO will be list on NSE SME with a tentative listing date fixed as Friday, February 21, 2025. Royalarc Electrodes IPO price band is set at ₹114 to ₹120 per share. The minimum lot size for an application is 1200. The minimum amount of investment required by retail investors is ₹1,36,800. But it is suggested to the investor to bid at the cutoff price to avoid the oversubscription senerio, which is about to ₹1,44,000.The minimum lot size investment for HNI is 2 lots (2,400 shares) amounting to ₹2,88,000. Fedex Securities Pvt Ltd is the book-running lead manager of the Royalarc Electrodes IPO, while Kfin Technologies Limited is the registrar for the issue.The market maker for Royalarc Electrodes IPO is Shreni Shares Limited.
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:
- Welding electrodes: They manufactures various welding electrodes, including mild steel, low hydrogen, stainless steel, hard-facing, cutting, and non-ferrous types.
- Flux Cored Wire: Flux-cored arc welding (FCAW) uses flux-cored wires for high deposition rates, joining, wear protection, and repairs, with various sizes and specifications.
- MIG/TIG Wires- MIG: The company manufactures welding consumables like electrodes, flux-cored wire, and MIG/TIG wire. Due to market conditions, it currently trades TIG/MIG wire but may resume manufacturing based on demand.
As of December 31, 2024, the company has a total workforce of 144 permanent employees.
Competitive Strength:
- Geographically spread across Bharat and overseas market
- Long-standing relationships with customers across industries
- Consistent financial performance
- Experienced promoters and strong management team
Royal Arc Electrodes IPO
IPO Overview and Key Highlights
Royal Arc Electrodes, a Mumbai-based manufacturer of welding electrodes and consumables, is launching its Initial Public Offering (IPO). The IPO consists of a fresh issue of up to 18,00,000 equity shares and an Offer for Sale (OFS) of 12,00,000 equity shares, bringing the total issue size to 30,00,000 equity shares with a face value of ₹10 per share. The funds raised will be utilized for business expansion, working capital, and general corporate purposes. The shares will be listed on the NSE EMERGE platform.
Key IPO Details
- Type of Issue • 100% Book Built Issue
- Total Issue Size • 30,00,000 equity shares (Fresh Issue + OFS)
- Face Value • ₹10 per share
- Issue Price • To be determined
- Offer Opens • February 14, 2025
- Offer Closes • February 18, 2025
- Listing Exchange • NSE EMERGE
- Offer Structure • Allocation for QIBs, NIIs, and RIIs as per SEBI guidelines
Company Overview
Royal Arc Electrodes was originally incorporated as Royalarc Electrodes Private Limited in 1996, later becoming a public company in 2005. It specializes in welding consumables, including electrodes, flux-cored wires, and welding machines.
- Promoters • Bipin Sanghvi, Tarulata Sanghvi, Hardik Sanghvi, and Swagat Sanghvi
- Headquarters • Mumbai, Maharashtra
- Corporate Identification Number (CIN) • U31100MH1996PLC096296
Financial Overview
Royal Arc Electrodes has shown consistent revenue growth, benefiting from the rising demand for welding solutions across industrial sectors. The IPO proceeds will be used to expand manufacturing capacity, invest in R&D, and enhance financial stability.
Key Strengths of Royal Arc Electrodes
- Established Market Presence • Leading player in the welding consumables industry.
- Diversified Product Portfolio • Offers welding electrodes, wires, and related equipment.
- Strategic Expansion Plans • Focus on increasing production and R&D investments.
- Experienced Management • Led by industry professionals with strong technical expertise.
IPO Pros and Cons
Pros
- Growing Industrial Demand • High demand for welding consumables in construction and manufacturing.
- Proceeds Utilization • Funds directed towards business expansion and innovation.
- Listing on NSE EMERGE • Enhances credibility and market visibility.
Cons
- Market Dependency • Revenue tied to industrial and infrastructure sector performance.
- Competitive Industry • Faces competition from domestic and global welding equipment providers.
- Raw Material Costs • Fluctuating material prices may impact profit margins.
Risk Factors
Potential investors should consider the following risks before investing:
- Industry Volatility • Business performance depends on industrial production and infrastructure growth.
- Operational Challenges • Scaling production while maintaining quality and cost efficiency.
- Regulatory Compliance • Adherence to manufacturing and safety regulations.
Conclusion
The Royal Arc Electrodes IPO presents an opportunity to invest in a leading welding consumables manufacturer with strong industry presence. However, since it includes a significant Offer for Sale, a portion of the raised capital will go to existing shareholders rather than the company. Investors should evaluate factors like market dependency, competition, and operational risks before making a decision.
FAQs About Royalarc Electrodes Ipo
Royalarc Electrodes IPO will open on 14 Feb, 2025 and close on 18 Feb, 2025. Investors must apply within this period to participate.
The Royalarc Electrodes IPO price band is set between ₹114.00 and ₹120.00 per share. The minimum lot size is 1200, requiring an investment of at least ₹144000.00.
The Royalarc Electrodes IPO shares are expected to be listed on 21 Feb, 2025, subject to regulatory approvals and final allotment.
You can track your Royalarc Electrodes IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Royalarc Electrodes IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.