Royal Arc Electrodes Limited
Bookbuilding IPO · NSE
- Price band
- ₹114 - ₹120
- Lot size
- 1,200 shares
- Issue amount
- ₹36 cr
- Total subscription
- 1.67×
- Opens
- 14 Feb 2025
- Closes
- 18 Feb 2025
- Allotment
- 20 Feb 2025
- Listing
- 24 Feb 2025
Offer at a glance
Issue overview
- Issue size
- 30,00,000 shares
- Face value
- ₹10 per share
- Minimum investment
- ₹1,36,800
- Fresh issue
- ₹21.6 cr
- Offer for sale
- ₹14.4 cr
- Registrar
- Kfin Technologies Limited
- Listing exchange
- NSE
- Maximum investment
- ₹1,44,000
- Issue type
- Bookbuilding IPO
- Shares before issue
- 93,00,200
- Shares after issue
- 1,11,00,200
Lot sizes
| Category | Lots | Shares | Amount |
|---|---|---|---|
| RETAIL | 1 | 1,200 | ₹1,44,000 |
| HNI | 2 | 2,400 | ₹2,88,000 |
Share reservation
Subscription & GMP
Subscription by category
Missing multiples are calculated from bids and offered shares when available.
GMP history
Application-wise demand
| Category | Reserved applications | Applied applications |
|---|---|---|
| QIB | — | 3 |
| NIB | — | 65 |
| RETAIL | — | 1,838 |
Subscription demand
Amounts in ₹ crore. HNI subcategories are included in the NII total.
| Category | Offered | Demand |
|---|---|---|
| QIBs | 6.72 | 7.01 |
| RETAIL | 12.01 | 26.47 |
Financial performance
Company financials
In Crores · Reported periods may include interim results.
Key performance indicators
| Metric | Sep-24 | Mar-24 | Mar-23 |
|---|---|---|---|
| EPS | 3.41 | 12.82 | 10.29 |
| ROE | 7.24 | 32.85 | 37.43 |
| ROCE | 8.92 | 37.73 | 41.81 |
| RONW | 6.99 | 28.21 | 31.53 |
| PRE IPO(PE) | 0 | 9.36 | 0 |
| POST IPO(PE) | 20.98 | 0 | 0 |
Values and labels as reported in the issue data.
Company information
Company profile
Established in 1996, Royalarc Electrodes Limited manufactures a wide range of welding consumables such as electrodes, flux-cored wires, and MIG/TIG wires. Its products are used in welding applications for tanks, boilers, heavy structures, and pipelines across sectors like railways, refineries, airports, and power plants. The company also trades welding-related materials, including flux and electro slag, from its modern 269,198 sq. ft. facility in Zaroli, Umbergaon, Gujarat. Serving clients across India and exporting to over 20 countries, Royalarc provides both standard and customized solutions that meet ABS, IBR, and BIS certifications, with testing conducted in NABL-accredited labs. As of December 2024, it employs 144 permanent staff.
Strengths
- Wide Distribution Network – Royalarc Electrodes Limited has a strong network of distributors, making it easy to reach customers across India and globally.
- Strong Customer Relationships – The company has long-term partnerships with major industries like railways, refineries, and power plants, ensuring steady business growth.
- Stable Financial Growth – Royalarc has maintained consistent financial performance through efficient operations, high-quality products, and a diverse market presence.
Risk factors
- Reliance on Indian Market – The company earns most of its revenue from India, so economic slowdowns or industry issues in the country could affect its business.
- Single Factory Risk – Since the company operates from just one plant in Gujarat, events like social unrest, natural disasters, or operational issues could disrupt production and finances.
- Challenges in Expansion – Expanding the facility may come with delays, higher costs, or inefficiencies, which could impact growth, cash flow, and overall financial health.
Promoters
Bipin Sanghvi
arulata Sanghvi
Hardik Sanghvi
Swagat Sanghvi
Registrar & documents
Lead manager
Fedex Securities Private Limited
Registrar & contacts
Kfin Technologies Limited
[email protected]Official registrar portal ↗IPO allotment status guide →Registered office
B 7, 3rd Floor, Jay Chambers, Dayaldas Road, Vile Parle – [East], Mumbai – 400 057, Maharashtra, India
+91 81049 85249
[email protected]Understanding ROYALARC IPO data
Compare the price band and required investment with the company profile, financial results and offer documents. Subscription figures show reported demand by category; they do not establish the value of the business. GMP is an unofficial indication and can change before listing.