Royal Arc Electrodes SME IPO Details, Financials, Valuation & Peers

By IPOBaseLast Updated on

Explore Royal Arc Electrodes IPO details, including IPO dates, financial statements, valuation, peer comparison and more.

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Status
Listed
Biding Dates
14 Feb - 18 Feb 2025
Price Range
₹114 - ₹120
Min Investment
1,44,000
Lot Size
1200 shares
Issue Size
₹36 crore
Listed Price
₹1200.00%

Overview

Royal Arc Electrodes Limited is a manufacturer of welding consumables, catering to a diverse range of industries such as railways, infrastructure, refineries, shipyards, power plants, and telecom. Established in 1996, the company specializes in the production of welding electrodes, flux-cored wires, and MIG/TIG wires used in critical applications, including the welding of tanks, boilers, heavy structures, pressure vessels, and pipelines. The company operates a state-of-the-art manufacturing facility in Zaroli, Umbergaon, Gujarat, spread across 25,082.61 square meters. This facility is equipped with advanced machinery, including extrusion units, baking ovens, powder mixers, and testing labs, ensuring strict quality control and compliance with international standards. Royal Arc Electrodes is ISO 9001:2015 certified by DNV – Business Assurance and holds key product certifications from bodies like the American Bureau of Shipping (ABS), Indian Boilers Regulation (IBR), and the Bureau of Indian Standards (BIS).

Key Points:

  • Specializes in manufacturing welding consumables, including electrodes, flux-cored wires, and MIG/TIG wires.
  • Serves industries like railways, refineries, shipyards, power plants, infrastructure, and telecom.
  • State-of-the-art manufacturing facility in Zaroli, Umbergaon, Gujarat, covering 25,082.61 sq. meters.
  • Equipped with advanced machinery such as extrusion units, baking ovens, and powder mixers for precision manufacturing.
  • Exports to over 20 countries, with a strong international presence.
  • Operates with a workforce of 144 employees, including skilled and unskilled labor, administrative staff, and management.

IPO Docs

Objects of the Issue

  • 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

IPO Details

Discover essential information crucial for understanding an IPO, including the Price Band, Fresh Issue, Offer For Sale, Total IPO Size and more. Explore these key details to gain insight into the company's public offering.

FieldsDetails
IPO Dates14 Feb - 18 Feb 2025
IPO Price Band₹114 - ₹120 per share
Fresh Issue18,00,000 shares (₹21.60 crore)
Offer For Sale12,00,000 shares (₹14.40 crore)
Total IPO Size₹36 crore
Face Value₹10
Listing OnNSE

IPO Timeline

Explore important dates like IPO opening, closing, listing and others, outlining the journey of the Public Offering. This will help you grasp the entire IPO journey effortlessly.

EventDate
IPO Opening Date14 Feb 2025
IPO Closing Date18 Feb 2025
Basis Of Allotment19 Feb 2025
Refunds20 Feb 2025
Demat Transfer20 Feb 2025
IPO Listing Date24 Feb 2025

Financial Statements

Explore a comprehensive financial data table showcasing key metrics including revenue, expenses, net income, and others. Gain valuable insights about the company's financial performance at a glance, facilitating informed decision-making and strategic planning for subscribing to the IPO.

Period Ended31st March 202231st March 202331st March 2024Sep 2024
Total Income64.8298.03100.9946.06
Total Expenses62.0184.9884.7341.79
Net Profit/Loss2.129.5711.933.18
NPM (*)3.379.8711.956.96
Total Assets42.4843.8552.2555.69
Total Liabilities21.7013.519.9710.24

* NPM represents the net profit margin, calculated as a percentage. All other figures are presented in crore (₹cr)

Valuation

Uncover significant valuation metrics such as EPS (Earnings Per Share), ROE (Return on Equity), ROCE (Return on Capital Employed), D/E Ratio (Debt-to-Equity Ratio), Current Ratio, and EBITDA Margin. These key indicators offer insights into the company's financial standing and performance, aiding in informed investment decisions.

Period Ended31st March 202231st March 202331st March 2024Sep 2024
EPS2.2810.2912.823.41
ROE (%)10.7037.4332.857.24
ROCE (%)12.6341.8137.738.92
D/E Ratio0.380.050.000.04
Current Ratio1.492.513.773.82
EBITDA MARGIN (%)8.7515.9118.1612.40

* Compiled from DRHP/RHP for valuation purposes.

Peer Comparison

Compare key financial metrics with industry peers to gain valuable insights into the company's performance compared to its competitors.

NameRevenueP/EEPSRoNWNAV
Royal Arc Electrodes Limited99.799.3612.8228.2145.45
ESAB India Limited1,243.3246.94105.9053.25198.87
Ador Welding Limited888.3821.0846.4617.44266.49
Gee Limited369.1429.174.956.2978.61
Rasi Electrodes Limited83.8328.431.029.8310.47

* Revenue in (₹cr), RoNW in (%), EPS, NAV in (₹). P/E ratio is based on the highest price from the IPO price band.

Subscription Data from NSE and BSE

Investor TypeSubscribed
Qualified Institutional Buyer (QIB)1.04
Non-Institutional Investor (NII/HNI)0.92
Retail Individual Investor (RII)2.2
Total1.6

* All figures represent multiples of the subscription. Check subscriptions for other ongoing issues here.

IPO Registrar

KFin Technologies Limited
Phone
: +91 40 6716 2222/ 18003094001
Email: einward.ris@kfintech.com
Website: www.kfintech.com

Company Promoters

  • BIPIN SANGHVI
  • TARULATA SANGHVI
  • HARDIK SANGHVI
  • SWAGAT SANGHVI

Lead Managers

  • FEDEX SECURITIES PRIVATE LIMITED

Company Address

Royal Arc 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

FAQs

  • What is the issue size of the Royal Arc Electrodes SME IPO?
    The Royal Arc Electrodes SME IPO has an issue size of ₹36 crore. This includes a fresh issue of 18,00,000 shares (₹21.60 crore) and an offer for sale (OFS) of 12,00,000 shares (₹14.40 crore).
  • What is the price band of the Royal Arc Electrodes IPO?
    The price band for the Royal Arc Electrodes IPO is ₹114 - ₹120 per share.
  • What are the bidding dates for the Royal Arc Electrodes IPO?
    The Royal Arc Electrodes IPO will open for bidding on 14 Feb 2025 and close on 18 Feb 2025.
  • What is the allotment date for the Royal Arc Electrodes IPO?
    The allotment date for the Royal Arc Electrodes IPO is 19 Feb 2025.
  • What is the minimum lot size and investment required for the Royal Arc Electrodes IPO?
    The minimum lot size for the Royal Arc Electrodes IPO is 1200 shares and the minimum investment required is ₹1,44,000.
  • What is the listing date for the Royal Arc Electrodes IPO?
    The listing date for the Royal Arc Electrodes IPO is 24 Feb 2025.
  • What is the Royal Arc Electrodes IPO grey market premium?
    The grey market premium (GMP) for the Royal Arc Electrodes IPO is currently at ₹0, with an expected listing gain of approximately 0%. Remember, the grey market premium is not an official indicator, but it reflects market perception and demand for the IPO shares.

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