The Royalarc Electrodes IPO is set to open on February 14, 2025, and will close on February 18, 2025. This is a Book Built Issue, through which the company aims to raise approximately ₹36.00 crores. The IPO consists of a fresh issue of ₹21.60 crores and an offer for sale of up to 12,00,000 equity shares, each with a face value of ₹10.
The price band for the IPO is ₹114 to ₹120 per share, with the retail quota at 35%, QIB at 50%, and HNI at 15%. Royalarc Electrodes IPO is expected to be listed on the NSE on February 21, 2025, and the allotment date is February 19, 2025.
For the financial year 2024, the company reported a revenue of ₹100.99 crores, compared to ₹98.03 crores in 2023. Its profit stood at ₹11.93 crores in 2024, up from ₹9.57 crores in 2023. Based on these financials, IPO investors should consider applying for the offering with a long-term perspective.
Royalarc Electrodes IPO Details
- IPO Open Date: February 14, 2025
- IPO Close Date: February 18, 2025
- Face Value: ₹10 per equity share
- IPO Price Band: ₹114 to ₹120 per share
- Issue Size: Approximately ₹36.00 crores
- Fresh Issue: Approximately ₹21.60 crores
- Offer for Sale: Approximately 12,00,000 equity shares
- Issue Type: Book Built Issue
- IPO Listing: NSE SME
- Retail Quota: Up to 35%
- QIB Quota: Up to 50%
- NII Quota: Up to 15%
- DRHP Draft Prospectus: [Click Here]
- RHP Draft Prospectus: [Click Here]
- Anchor Investors List: [Click Here]
Royalarc Electrodes IPO Market Lot
The minimum market lot for the Royalarc Electrodes IPO is 1200 shares, with an application amount of ₹1,44,000.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1200 | ₹1,44,000 |
| Retail Maximum | 1 | 1200 | ₹1,44,000 |
| S-HNI Minimum | 2 | 2400 | ₹2,88,000 |
Royalarc Electrodes IPO Timeline
The Royalarc Electrodes IPO is scheduled to open on February 14, 2025, and will close on February 18, 2025. The allotment of shares will be determined on February 19, 2025, followed by refunds and credit to Demat accounts on February 20, 2025. The IPO will be listed on the stock exchange on February 21, 2025.
IPO Key Dates:
- Opening Date: February 14, 2025
- Closing Date: February 18, 2025
- Allotment Date: February 19, 2025
- Refunds: February 20, 2025
- Credit to Demat Account: February 20, 2025
- Listing Date: February 21, 2025
Promoters of Royalarc Electrodes IPO
The promoters of Royalarc Electrodes are Bipin Sanghvi, Tarulata Sanghvi, Hardik Sanghvi, and Swagat Sanghvi.
About Royalarc Electrodes IPO
Founded in 1996 in Mumbai, Maharashtra, Royalarc Electrodes is a leading manufacturer of welding consumables. The company produces a range of products, including welding electrodes, flux-cored wire, and MIG/TIG wires, which are primarily used in welding applications for tanks, boilers, heavy structures, beams, pipes, cylinders, and pressure vessels.
At their manufacturing facility, raw materials undergo processes such as wire drawing, cutting, powder mixing, covering, and baking. Royalarc Electrodes specializes in both standardized and customized products. Their products are exported to over 20 countries and supplied to numerous domestic clients.
As of December 31, 2024, the company employs 144 people. They use materials like copper-coated wire, MS strips, MS wire, SS strips, SS wire, nickel wire, and ferroalloy powder in their manufacturing processes. The company’s manufacturing facility is situated on a 6.197-acre plot in Zaroli, Umbergaon Valsad, Gujarat, India.
Royalarc Electrodes IPO Financial Report
Royalarc Electrodes reported a revenue of ₹100.99 crores in 2024, marking a slight increase from ₹98.03 crores in 2023. The company’s profit grew to ₹11.93 crores in 2024, compared to ₹9.57 crores in the previous year.
Financial Summary (₹ in Crores)
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
|---|---|---|---|---|
| 2022 | ₹64.82 | ₹62.01 | ₹2.12 | ₹42.48 |
| 2023 | ₹98.03 | ₹84.98 | ₹9.57 | ₹43.85 |
| 2024 | ₹100.99 | ₹84.73 | ₹11.93 | ₹52.25 |
| September 2024 | ₹46.06 | ₹41.79 | ₹3.18 | ₹55.69 |
Royalarc Electrodes IPO Valuation – FY2024
Here are the key valuation metrics for Royalarc Electrodes IPO:
| KPI | Values |
|---|---|
| Return on Equity (ROE) | 32.85% |
| Return on Capital Employed (ROCE) | 37.73% |
| EBITDA Margin | 18.16% |
| PAT Margin | 11.95% |
| Debt to Equity Ratio | 0.00 |
| Earnings Per Share (EPS) | ₹12.82 (Basic) |
| Price/Earnings (P/E) Ratio | N/A |
| Return on Net Worth (RoNW) | 28.21% |
| Net Asset Value (NAV) | ₹45.45 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| ESAB India Limited | ₹105.90 | 46.94 | 53.25 | ₹198.87 | – Cr. |
| Ador Welding Limited | ₹46.46 | 21.08 | 17.44 | ₹266.49 | – Cr. |
| Gee Limited | ₹4.95 | 29.17 | 6.29 | ₹78.61 | – Cr. |
| Rasi Electrodes Limited | ₹1.02 | 28.43 | 9.83 | ₹10.47 | – Cr. |
Objects of the Issue
- To fund the expansion of the manufacturing facility located at Village Zaroli, Umbergaon Valsad, Gujarat, India
- To meet the working capital requirements of the company
- For general corporate purposes
Royalarc Electrodes IPO Review IPO Watch – May Apply
Here are the IPO reviews from various financial institutions:
- Canara Bank
- DRChoksey FinServ
- Emkay Global
- Hem Securities
- IDBI Capital
- Marwadi Shares
- Nirmal Bang
- SBICAP Securities
- Sharekhan
- SMC Global
- Sushil Finance
- Swastika Investmart
- Ventura Securities
- Geojit
- Reliance Securities
- Capital Market
- BP Wealth
- ICICIdirect
- Choice Broking
Royalarc Electrodes IPO Registrar
- KFin Technologies Limited
- Phone: 04067162222, 04079611000
- Email: rael.ipo@kfintech.com
- Website: KFintech IPO Status
IPO Lead Managers (Merchant Bankers)
- Fedex Securities Pvt Ltd
Company Address
- Royalarc Electrodes Limited
- 72 B, Bombay Talkies Compound, S.V. Road, Malad West, Mumbai, Maharashtra, 400064
- Phone: +91 78880 00553
- Email: cs@royalarc.in
- Website: Royalarc Electrodes
Royalarc Electrodes IPO FAQs
- What is Royalarc Electrodes IPO?
Royalarc Electrodes is an SME IPO. The company aims to raise ₹36.00 Crores via the IPO, with a price range of ₹114 to ₹120 per equity share. The IPO will be listed on the NSE. - When will the Royalarc Electrodes IPO open for subscription?
The IPO will open on February 14, 2025, for QIB, NII, and Retail Investors, and will close on February 18, 2025. - What is the Royalarc Electrodes IPO investors’ portion?
The investor portion is as follows:- QIB: 50%
- NII: 15%
- Retail: 35%
How to apply for the Royalarc Electrodes IPO?
You can apply for the IPO through the ASBA online method via your bank account, or through UPI via your stockbroker. Offline applications can also be made through stockbrokers by filling out the required form.
1. What is the Royalarc Electrodes IPO issue size?
The issue size of the IPO is ₹36.00 crores.
2. What is the Royalarc Electrodes IPO price band?
The price band for the IPO is ₹114 to ₹120 per share.
3. What is the Royalarc Electrodes IPO lot size?
The minimum bid is for 1200 shares, amounting to ₹1,44,000.
4. What is the Royalarc Electrodes IPO allotment date?
The allotment date is February 19, 2025.
5. What is the Royalarc Electrodes IPO listing date?
The IPO will be listed on February 21, 2025.
