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Royal Arc Electrodes IPO

₹1,36,800/1200 shares

Minimum Investment

IPO Details

Open Date

14 Feb 25

Close Date

18 Feb 25

Minimum Investment

1,36,800

Lot Size

1200

Price Range

114 to ₹120

Listing Exchange

NSE

Issue Size

36 Cr

Listing Date

21 Feb 25

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Royal Arc Electrodes IPO Timeline

Bidding Start

14 Feb 25

Bidding Ends

18 Feb 25

Allotment Finalisation

19 Feb 25

Refund Initiation

20 Feb 25

Demat Transfer

20 Feb 25

Listing

21 Feb 25

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About Royal Arc Electrodes Limited IPO

Royal Arc Electrodes Limited specialises in manufacturing welding consumables such as electrodes, flux-cored wires, and MIG/TIG wires, serving industries like railways, refineries, and shipyards. Operating from a technologically advanced facility in Gujarat, it adheres to international quality standards and holds ISO 9001:2015 certification. With 134 employees, it supplies both standardized and customized products, exporting to over 20 countries. The company maintains strong client relationships, with certifications from ABS, IBR, and BIS, ensuring quality compliance in critical applications.

Royal Arc Electrodes Limited IPO

IPO Strengths

  • Wide geographical presence across India and 20+ export markets.
  • Strong distribution network with dealers, distributors, and direct sales.
  • 25+ years of industry experience with diverse customer relationships.
  • Well-diversified revenue base, reducing customer dependency risks.
  • Consistent financial growth with a 25.94% revenue CAGR.
  • Experienced leadership with 30+ years in the welding industry.
  • Strong financial stability supporting strategic growth initiatives.

Royal Arc Electrodes IPO Key Financials (in ₹ lakhs)

Particulars 31 Mar 2024 31 Mar 2023 31 Mar 2022
Assets 5224.62 4385.40 4247.84
Revenue 9978.75 9694.02 6290.97
Profit After Tax 1192.63 956.82 212.13
Reserves and Surplus 3297.17 2852.56 1895.74
Total Borrowings 19.71 141.71 781.25

Royal Arc Electrodes Limited Upcoming IPO Details

Category Details
Issue Type Book Built Issue IPO
Total Issue Size Fresh Issue: 18,00,000 shares (aggregating up to ₹21.60 Cr)

Offer for Sale: 12,00,000 shares of ₹10 (aggregating up to ₹14.40 Cr)

Price Range ₹114 to ₹120 per share
Lot Size 1200 Shares
Face Value ₹10 per share
Listing Exchange SME, NSE
Pre-IPO Shareholding 93,00,200 shares
Post-IPO Shareholding 1,11,00,200 shares
Market Marker 1,53,600 shares (Shreni Shares Limited)

Royal Arc Electrodes IPO Important Dates

IPO Activity Date
IPO Open Date 14 February 2025
IPO Close Date 18 February 2025
Basis of Allotment 19 February 2025
Refunds Initiation 20 February 2025
Credit of Shares to Demat 20 February 2025
Listing Date 21 February 2025

Royal Arc Electrodes IPO Lots

Application Lots Shares Amount
Retail (Min) 1 1200 ₹1,44,000
Retail (Max) 1 1200 ₹1,44,000
HNI (Min) 2 2400 ₹2,88,000

Royal Arc Electrodes IPO Lead Managers

Lead Managers
Fedex Securities Private Limited

Royal Arc Electrodes Limited IPO Valuation Overview

KPI Value
Earnings Per Share (EPS) 12.82
Price/Earnings (P/E) Ratio TBD
Return on Net Worth (RoNW) 28.21%
Net Asset Value (NAV) 45.45
Return on Equity 32.85%
Return on Capital Employed (ROCE 37.73%
EBITDA Margin 18.16%
PAT Margin 11.95%
Debt to Equity Ratio 0

Royal Arc Electrodes IPO Peer Group Comparison

Companies EPS (Basic) (₹) PE Ratio RONW (%) Face Value (₹) NAV (Per Share) (₹)
Royal Arc Electrodes Limited 12.82 TBD 28.21 10.00 45.45
Peer Group
ESAB India Limited 105.90 59.68 53.25 10.00 198.87
Ador Welding Limited 46.46 31.14 17.44 10.00 266.49
Gee Limited 4.95 24.55 6.29 10.00 78.61
Rasi Electrodes Limited 1.02 31.52 9.83 10.00 10.47

Objectives of the Proceeds

  • Funding towards the expansion of the existing manufacturing facility situated at Village Zaroli, Umbergaon Valsad, Gujarat, ₹488.66 lakhs
  • Funding Working capital requirements, ₹1650 lakhs
  • To meet general corporate expenses

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5Complete Transaction on Your UPI App

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