Royalarc Electrodes Limited IPO (Royalarc Electrodes IPO) Detail

Royalarc Electrodes IPO is a book built issue of Rs 36.00 crores. The issue is a combination of fresh issue of 18.00 lakh shares aggregating to Rs 21.60 crores and offer for sale of 12.00 lakh shares aggregating to Rs 14.40 crores.

Royalarc Electrodes IPO bidding started from February 14, 2025 and ended on February 18, 2025. The allotment for Royalarc Electrodes IPO was finalized on Wednesday, February 19, 2025. The shares got listed on NSE SME on February 24, 2025.

Royalarc Electrodes IPO price band is set at ₹120 per share. The minimum lot size for an application is 1200. The minimum amount of investment required by retail investors is ₹1,36,800. But it is suggested to the investor to bid at the cutoff price to avoid the oversubscription senerio, which is about to ₹1,44,000. The minimum lot size investment for HNI is 2 lots (2,400 shares) amounting to ₹2,88,000.

Fedex Securities Pvt Ltd is the book-running lead manager of the Royalarc Electrodes IPO, while Kfin Technologies Limited is the registrar for the issue.The market maker for Royalarc Electrodes IPO is Shreni Shares Limited.

Refer to Royalarc Electrodes IPO RHP for detailed information.

Royalarc Electrodes IPO Details

Royalarc Electrodes IPO Reservation

Royalarc Electrodes IPO offers 30,00,000 shares. 5,60,400 (18.68%) to QIB, 4,45,200 (14.84%) to NII, 10,00,800 (33.36%) to RII and 8,40,000 (28%) to Anchor investors.

Royalarc Electrodes IPO Anchor Investors Details

Royalarc Electrodes IPO raises Rs 10.08 crore from anchor investors. Royalarc Electrodes IPO Anchor bid date is February 13, 2025. Royalarc Electrodes IPO Anchor Investors list

Royalarc Electrodes IPO Timeline (Tentative Schedule)

Royalarc Electrodes IPO opens on February 14, 2025, and closes on February 18, 2025.

Royalarc Electrodes IPO Lot Size

Investors can bid for a minimum of 1200 shares and in multiples thereof. The following table depicts the minimum and maximum investment by Retail Investors and HNI in terms of shares and amount.

Royalarc Electrodes IPO Promoter Holding

Note : The value will be calculated using Equity Dilution = Share Holding Pre Issue – Share Holding Post Issue

About Royalarc Electrodes Limited

Incorporated in 1996, Royalarc Electrodes Limited is engaged in the business of manufacturing of welding consumables such as, welding electrodes, flux cored wire, MIG/TIG wires.

The company is used welding consumables for welding tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, and more, across industries such as railways, roadways, airports, refineries, shipyards, mining, sugar, telecom, thermal power stations, and PEB sectors.

The company is also involved in trading ancillary and incidental products such as wheels, electro slag, welding flux-cored wire, electro slag strip cladding, saw flux, and TIG/MIG wires.

The company manufactures products using copper-coated wire, MS strips, MS wire, SS strips, SS wire, nickel wire, and ferro alloy powder at a state-of-the-art facility spread over 269,198 sq. ft. in Zaroli, Umbergaon, Gujarat.

The company manufactures standardized and customized products, supplying domestically and exporting to 20+ countries. Products are certified by American Bureau of Shipping (ABS), Indian Boilers Regulation (IBR), Bureau of Indian Standard (BIS), with inspections outsourced to NABL-accredited laboratories.

Products:

• Welding electrodes: They manufactures various welding electrodes, including mild steel, low hydrogen, stainless steel, hard-facing, cutting, and non-ferrous types.
• Flux Cored Wire: Flux-cored arc welding (FCAW) uses flux-cored wires for high deposition rates, joining, wear protection, and repairs, with various sizes and specifications.
• MIG/TIG Wires- MIG: The company manufactures welding consumables like electrodes, flux-cored wire, and MIG/TIG wire. Due to market conditions, it currently trades TIG/MIG wire but may resume manufacturing based on demand.

As of December 31, 2024, the company has a total workforce of 144 permanent employees.

Competitive Strength:

• Geographically spread across Bharat and overseas market
• Long-standing relationships with customers across industries
• Consistent financial performance
• Experienced promoters and strong management team

Company Financials

Royal Arc Electrodes Limited Financial Information (Restated)

Key Performance Indicator (KPI)

The market capitalization of Royalarc Electrodes IPO is Rs 133.20 Cr.

KPI as of Sun, Mar 31, 2024.

• The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2024 that is available in RHP.
• The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of September 30, 2024 that is available in RHP.

Objects of the Issue (Royalarc Electrodes IPO Objectives)

The Company proposes to utilize the net proceeds from the Fresh Issue towards funding the following objects:

1. Funding towards the expansion of the manufacturing facility situated at Village Zaroli, Umbergaon Valsad, Gujarat, Bharat
2. Funding the working capital requirements of the Company
3. General corporate purposes

The Company will not receive any proceeds from the Offer for Sale and the proceeds from the Offer for Sale will not form part of the Net Proceeds.

Royalarc Electrodes IPO Review May apply

[Dilip Davda]  RAEL is engaged in the business of manufacturing and marketing of welding consumables and related products. It is also trading in ancillary/incidental products in line with its business model. The lion share of its revenue comes from B2B segment. The company posted growth in its top lines, but sudden spurt in its bottom lines from FY24 onwards raises eyebrows and concern over its sustainability. Based on its recent financial performance, the issue appears fully priced. Well-informed investors may park moderate funds for medium to long term. Read detail review…

Royalarc Electrodes IPO Subscription Status (Bidding Detail)

The Royalarc Electrodes IPO is subscribed 1.6 times on February 18, 2025 6:20:00 PM (Day 3). The public issue subscribed 2.2 times in the retail category, 1.04 times in the QIB category, and 0.92 times in the NII category. Check Day by Day Subscription Details (Live Status)

Total Application : 1,906

*Market Maker portion is not included to NII/HNI.

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