Allotment

Royal Arc Electrodes Limited has launched a book-built IPO to raise ₹36 crore, comprising a fresh issue of 0.18 crore shares worth ₹21.60 crore and an offer-for-sale of 0.12 crore shares worth ₹14.40 crore. The IPO aims to strengthen the company’s capital base and support its growth initiatives.
The IPO bidding opened on February 14, 2025, and closed on February 18, 2025, with allotment finalized on February 19, 2025. The shares were subsequently listed on the NSE SME platform on February 24, 2025.
The IPO is priced at ₹120 per share, with a lot size of 1,200 shares. Retail investors can apply for a minimum of one lot (1,200 shares), requiring an investment of ₹1,44,000 at the upper price, while HNI investors must bid for at least two lots (2,400 shares), amounting to ₹2,88,000. Investors can apply in multiples of the lot size.
Key Participants: The book running lead manager is Fedex Securities Pvt. Ltd., while Kfin Technologies Ltd. acts as the registrar of the issue. Shreni Shares Ltd. serves as the market maker, ensuring liquidity and smooth trading on the NSE SME platform.
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| IPO Date | 24 Feb |
| IPO Listing Date | 24 Feb |
| IPO Face Value | ₹10 per share |
| IPO Price Range | ₹120.00 |
| IPO Issue Size | 30,00,000 shares |
| IPO Sale Type | Fresh Capital & OFS |
| Employee Discount | - |
| IPO Issue Type | Bookbuilding IPO |
| IPO Listing | NSE SME Platform |
| Share Holding Pre Issue | 93,00,200 shares |
| IPO Open Date | 14 Feb |
| IPO Close Date | 18 Feb |
| IPO Allotment (Tentative) | 19 Feb |
| Refunds | 20 Feb |
| Credit to Demat Account | 20 Feb |
| IPO Listing Date | 24 Feb |
| Category | Offer |
|---|---|
| QIB Shares Offered | 14,22,000 Shares |
| NII (HNI) Shares Offered | 4,06,800 (13.56%) Shares |
| Retail Shares Offered | 10,17,600 Shares |
Investors can apply for a minimum of 1,200 shares, with additional applications allowed in multiples of 1,200 shares.
| Application | Lots | Share | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1,200 | ₹1,44,000 |
| Retail (Max) | 1 | 1,200 | ₹1,44,000 |
| S-HNI (Min) | 1 | 2,400 | ₹2,88,000 |
| S-HNI (Max) | - | - | - |
| B-HNI (Min) | - | - | - |
Incorporated in 1996, Royalarc Electrodes Limited is a leading manufacturer of welding consumables, including welding electrodes, flux-cored wires, and MIG/TIG wires. The company’s products are used in welding applications for 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.
In addition to manufacturing, the company trades ancillary and incidental products, including wheels, electro-slag, flux-cored wires, electro-slag strip cladding, saw flux, and TIG/MIG wires. Manufacturing is carried out at a state-of-the-art facility spanning 269,198 sq. ft. in Zaroli, Umbergaon, Gujarat, using materials such as copper-coated wire, MS and SS strips/wires, nickel wire, and ferro alloy powder.
Royalarc produces both standardized and customized products for domestic and international markets, exporting to over 20 countries. Its products are certified by the American Bureau of Shipping (ABS), Indian Boilers Regulation (IBR), and Bureau of Indian Standards (BIS), with quality inspections conducted through NABL-accredited laboratories.
Product Portfolio:
Welding Electrodes: Mild steel, low hydrogen, stainless steel, hard-facing, cutting, and non-ferrous electrodes.
Flux-Cored Wires (FCAW): Designed for high deposition rates, wear protection, repairs, and joining, available in multiple sizes and specifications.
MIG/TIG Wires: Manufactures welding consumables; currently trades TIG/MIG wires, with production resuming based on market demand.
As of December 31, 2024, the company has a workforce of 144 permanent employees.
Competitive Strengths:
Wide geographical presence across India and international markets.
Long-standing relationships with customers across diverse industries.
Consistent financial performance and operational track record.
Experienced promoters and a strong management team driving growth and innovation.
| Assets | 55.69 | 52.25 | 43.85 |
| Total Income | 46.06 | 100.99 | 98.03 |
| Profit After Tax | 3.18 | 11.93 | 9.57 |
| EBITDA | - | - | - |
| NET Worth | 45.45 | 42.27 | 30.35 |
| Reserves and Surplus | 36.15 | 32.97 | 28.53 |
| Total Borrowing | 2.02 | 0.2 | 1.42 |
| ROE | 32.85% |
| ROCE | 37.73% |
| Debt/Equity | - |
| RoNW | 28.21% |
| PAT Margin | 11.95% |
| EBITDA Margin | - |
| Price to Book Value | 2.64 |
IPO Objects of the Issue
| S.No. | Objects of the ipo Resources Detail | IPO Amount |
|---|---|---|
| 1 | Funding capital expenditure requirements for the purchase of equipment/machineries | - |
| 2 | To meet out the expenses of Working Capital Requirement | 14 |
| 3 | To meet out the General Corporate Purposes; | 0.55 |
| 4 | Offer for Sale (OFS) | - |
Royal Arc Electrodes Ltd. Address
72 B, Bombay Talkies Compound,
S.V. Road
Malad West,
Mumbai, Maharashtra, 400064
+91 78880 00553
cs@royalarc.in
https://royalarc.in/
IPO Registrar
Kfin Technologies Ltd.
04067162222, 04079611000
rael.ipo@kfintech.com
https://ipostatus.kfintech.com/