Royalarc Electrodes IPO: Date, Review, Price, and Allotment Details
Royalarc Electrodes IPO will open for subscription on February 14, 2025, and close on February 18, 2025. This is a Book Built Issue IPO, with a total issue size of ₹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 with a face value of ₹10 per share.
The IPO price band is set between ₹114 to ₹120 per share. The quota allocation for different investor categories is as follows:
- Retail Investors: 35%
- Qualified Institutional Buyers (QIB): 50%
- Non-Institutional Investors (NII): 15%
Royalarc Electrodes IPO is scheduled to be listed on NSE SME on February 21, 2025. The IPO allotment date is February 19, 2025.
Royalarc Electrodes IPO Details
| IPO Details | Information |
|---|---|
| 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 | ₹36.00 crores (approx) |
| Fresh Issue | ₹21.60 crores (approx) |
| Offer for Sale | 12,00,000 equity shares |
| Issue Type | Book Built Issue |
| Listing Exchange | NSE SME |
| Retail Quota | 35% |
| QIB Quota | 50% |
| NII Quota | 15% |
| DRHP & RHP | Click Here |
Royalarc Electrodes IPO Market Lot
The minimum market lot for Royalarc Electrodes IPO is 1,200 shares, requiring a minimum investment of ₹1,44,000.
| Investor Type | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail – Minimum | 1 Lot | 1,200 | ₹1,44,000 |
| Retail – Maximum | 1 Lot | 1,200 | ₹1,44,000 |
| S-HNI – Minimum | 2 Lots | 2,400 | ₹2,88,000 |
Royalarc Electrodes IPO Schedule
| Event | Date |
|---|---|
| IPO Open Date | February 14, 2025 |
| IPO Close Date | February 18, 2025 |
| Basis of Allotment | February 19, 2025 |
| Refunds Initiated | 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 Limited include:
- Bipin Sanghvi
- Tarulata Sanghvi
- Hardik Sanghvi
- Swagat Sanghvi
About Royalarc Electrodes Limited
Founded in 1996, Royalarc Electrodes Limited is a Mumbai-based manufacturer of welding consumables. The company specializes in welding electrodes, flux-cored wires, and MIG/TIG wires, which are used in:
- Tanks
- Boilers
- Heavy structures
- Beams
- Pipes
- Pressure vessels
Their manufacturing facility is located on a 6.197-acre site in Umbergaon, Valsad, Gujarat. The company supplies its products to domestic customers and exports them to 20+ countries.
Royalarc Electrodes Financial Report
Financial Performance (₹ in Crores)
| Year | Revenue | Expense | Profit After Tax | Total 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 |
| Sept 2024 | ₹46.06 | ₹41.79 | ₹3.18 | ₹55.69 |
Royalarc Electrodes IPO Valuation – FY 2024
| KPI | Value |
|---|---|
| Return on Equity (ROE) | 32.85% |
| Return on Capital Employed (ROCE) | 37.73% |
| EBITDA Margin | 18.16% |
| Profit After Tax (PAT) Margin | 11.95% |
| Debt-to-Equity Ratio | 0.00 |
| Earnings Per Share (EPS) | ₹12.82 (Basic) |
| Price-to-Earnings (P/E) Ratio | N/A |
| Return on Net Worth (RoNW) | 28.21% |
| Net Asset Value (NAV) | ₹45.45 |
Peer Group Comparison
| Company | EPS | P/E Ratio | RoNW (%) | NAV |
|---|---|---|---|---|
| ESAB India Ltd | 105.90 | 46.94 | 53.25% | 198.87 |
| Ador Welding Ltd | 46.46 | 21.08 | 17.44% | 266.49 |
| Gee Limited | 4.95 | 29.17 | 6.29% | 78.61 |
| Rasi Electrodes Ltd | 1.02 | 28.43 | 9.83% | 10.47 |
Objects of the Issue
The funds raised through Royalarc Electrodes IPO will be used for:
✅ Expanding the manufacturing facility at Umbergaon, Valsad, Gujarat
✅ Meeting working capital requirements
✅ General corporate purposes
Royalarc Electrodes IPO Review & Recommendations
- Long-term investment potential due to strong financials and market presence
- Debt-free company with consistent revenue growth
- Competitive edge in the welding consumables industry
IPO Ratings & Recommendations from Analysts: (To be updated)
Royalarc Electrodes IPO Registrar & Lead Manager
📌 Registrar: KFin Technologies Limited
📞 Phone: 040-67162222, 040-79611000
📧 Email: rael.ipo@kfintech.com
🌍 Website: KFintech
📌 Lead Manager: Fedex Securities Pvt Ltd
Royalarc Electrodes IPO FAQs
🔹 What is Royalarc Electrodes IPO?
It is an SME IPO raising ₹36.00 crores, with a price band of ₹114-₹120.
🔹 When does Royalarc Electrodes IPO open?
The IPO opens on February 14, 2025, and closes on February 18, 2025.
🔹 What is the IPO allotment date?
The allotment will be finalized on February 19, 2025.
🔹 When will Royalarc Electrodes IPO be listed?
It will be listed on NSE SME on February 21, 2025.