Royal Arc Electrodes SME IPO Details, Financials, Valuation & Peers
Explore Royal Arc Electrodes IPO details, including IPO dates, financial statements, valuation, peer comparison and more.
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.
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
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| Fields | Details |
|---|---|
| IPO Dates | 14 Feb - 18 Feb 2025 |
| IPO Price Band | ₹114 - ₹120 per share |
| Fresh Issue | 18,00,000 shares (₹21.60 crore) |
| Offer For Sale | 12,00,000 shares (₹14.40 crore) |
| Total IPO Size | ₹36 crore |
| Face Value | ₹10 |
| Listing On | NSE |
IPO Timeline
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| Event | Date |
|---|---|
| IPO Opening Date | 14 Feb 2025 |
| IPO Closing Date | 18 Feb 2025 |
| Basis Of Allotment | 19 Feb 2025 |
| Refunds | 20 Feb 2025 |
| Demat Transfer | 20 Feb 2025 |
| IPO Listing Date | 24 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 Ended | 31st March 2022 | 31st March 2023 | 31st March 2024 | Sep 2024 |
|---|---|---|---|---|
| Total Income | 64.82 | 98.03 | 100.99 | 46.06 |
| Total Expenses | 62.01 | 84.98 | 84.73 | 41.79 |
| Net Profit/Loss | 2.12 | 9.57 | 11.93 | 3.18 |
| NPM (*) | 3.37 | 9.87 | 11.95 | 6.96 |
| Total Assets | 42.48 | 43.85 | 52.25 | 55.69 |
| Total Liabilities | 21.70 | 13.51 | 9.97 | 10.24 |
* 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 Ended | 31st March 2022 | 31st March 2023 | 31st March 2024 | Sep 2024 |
|---|---|---|---|---|
| EPS | 2.28 | 10.29 | 12.82 | 3.41 |
| ROE (%) | 10.70 | 37.43 | 32.85 | 7.24 |
| ROCE (%) | 12.63 | 41.81 | 37.73 | 8.92 |
| D/E Ratio | 0.38 | 0.05 | 0.00 | 0.04 |
| Current Ratio | 1.49 | 2.51 | 3.77 | 3.82 |
| EBITDA MARGIN (%) | 8.75 | 15.91 | 18.16 | 12.40 |
* 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.
| Name | Revenue | P/E | EPS | RoNW | NAV |
|---|---|---|---|---|---|
| Royal Arc Electrodes Limited | 99.79 | 9.36 | 12.82 | 28.21 | 45.45 |
| ESAB India Limited | 1,243.32 | 46.94 | 105.90 | 53.25 | 198.87 |
| Ador Welding Limited | 888.38 | 21.08 | 46.46 | 17.44 | 266.49 |
| Gee Limited | 369.14 | 29.17 | 4.95 | 6.29 | 78.61 |
| Rasi Electrodes Limited | 83.83 | 28.43 | 1.02 | 9.83 | 10.47 |
* 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 Type | Subscribed |
|---|---|
| Qualified Institutional Buyer (QIB) | 1.04 |
| Non-Institutional Investor (NII/HNI) | 0.92 |
| Retail Individual Investor (RII) | 2.2 |
| Total | 1.6 |
* 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.