ARC Insulation IPO is open now

ARC Insulation IPO is open now

Mumbai, 21 August 2025: ARC Insulation & Insulators Ltd. IPO has opened today, offering investors an opportunity to invest in a ₹41.19 crore book-building issue. The IPO includes a fresh issue of 0.30 crore shares for ₹38.06 crore and an offer for sale of 0.03 crore shares aggregating ₹3.13 crore. The IPO will close on 25 August 2025, with allotment expected on 26 August and tentative listing on NSE SME on 29 August 2025.

Price Band Fixed in Between ₹119 and ₹125

The issue price for the IPO is in the range of ₹119 to ₹125 per share, with a minimum lot size of 1,000 shares. Retail investors can apply for a minimum of 2,000 shares (₹2.38 lakh), while high-net-worth individuals (HNIs) can apply for 3,000 shares (₹3.75 lakh). The book-building issue is being managed by Gretex Corporate Services Ltd., with Maashitla Securities Pvt. Ltd. as registrar and Gretex Share Broking Pvt. Ltd. as market maker.

For the year ended March 31, 2025, ARC Insulation posted total revenue of ₹33.15 crore, an increase of 15% from ₹28.83 crore in FY 2024. Profit after tax surged 40% to ₹8.57 crore, indicating excellent operating efficiency. EBITDA improved to ₹12.50 crore, from ₹9.05 crore last year, while net worth almost doubled to ₹25.22 crore, indicating excellent financial health.

ARC Insulation maintains a ROE of 45.47% and ROCE of 49.84% with a debt-to-equity ratio of 0.24, ensuring a low risk profile. Profit margins are strong as well, with a PAT margin of 26.18% and an EBITDA margin of 38.22%, reflecting efficient cost control and potential for growth. The post-IPO price-to-book ratio is 3.59.

Promoter Holding and Strategic Use of IPO Proceeds for Expansion

Promoters, including Mr. Manish Bajoria, Ms. Neelam Bajoria, M/s. Swabhumi Distributors Pvt. Ltd., and M/s. Manish Bajoria HUF presently holds 94.48% of pre-IPO shares. The IPO proceeds are intended to be utilised for the following purposes:

• ₹8.16 crore toward the construction of a new factory shed
• ₹3.06 crore toward offices
• ₹1.18 crore toward repayment of debt
• ₹10.00 crore toward working capital
• Remaining funds for general corporate purposes

ARC Insulation manufactures high-performance GFRP items such as rebars, tubes, gratings, and fencing. The corrosion-proof, lightweight products serve infrastructure, power, chemical, marine, and mining industries.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source : NSE