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 uses 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.
The Company’s 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.
Royalarc Electrodes IPO – Details
| IPO Opening Date | 14 February 2025 |
| IPO Closing Date | 18 February 2025 |
| Issue Type | Book Built Issue IPO |
| Issue Size | Total Issue Size: 30,00,000 Shares Worth ₹36.00 Crore Fresh Issue: 18,00,000 Shares Worth ₹21.60 Crore Offer For Sale: 12,00,000 Shares Worth ₹14.40 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹114 – ₹120 per share |
| Market Lot | 1200 Shares |
| Min Order | 1200 Shares (1 Lot) |
| Listing At | NSE SME |
| Register | Kfin Technologies Limited |
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Royalarc Electrodes IPO – Date Schedule
| IPO Open Date | 14 February 2025 |
| IPO Close Date | 18 February 2025 |
| Basis of Allotment | 19 February 2025 |
| Initiation of Refund | 20 February 2025 |
| Credit of Shares to Demat Account | 20 February 2025 |
| IPO Listing Date | 21 February 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on February 18, 2025 |
Royalarc Electrodes IPO – Lots Size & Price
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹1,44,000 |
| Retail (Max) | 1 | 1200 | ₹1,44,000 |
| HNI (Min) | 2 | 2400 | ₹2,88,000 |
Competitive Strengths
- Geographically spread across Bharat and overseas market.
- Long-standing relationships with customers across industries.
- Consistent financial performance.
- Experienced promoters and strong management team.
Company Promoters
- Bipin Sanghvi
- Tarulata Sanghvi
- Hardik Sanghvi
- Swagat Sanghvi
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax | Total Borrowing |
|---|---|---|---|---|
| 31 March 2022 | 64.82 | 62.01 | 2.12 | 7.81 |
| 31 March 2023 | 98.03 | 84.98 | 9.56 | 1.42 |
| 31 March 2024 | 100.99 | 84.73 | 11.92 | 0.20 |
| 30 September 2024 | 46.05 | 41.79 | 3.17 | 2.02 |
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 32.85% |
| ROCE | 37.73% |
| RoNW | 28.21% |
| PAT Margin | 11.95 |
| Price to Book Value | 2.64 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 12.82 | 5.72 |
| P/E (x) | 9.36 | 20.98 |
Object Of The Issue
- Funding towards the expansion of the manufacturing facility situated at Village Zaroli, Umbergaon Valsad, Gujarat, Bharat.
- Funding the working capital requirements of the Company.
- General corporate purposes.
Royalarc Electrodes IPO Promoter Holding
| Pre Issue Share Holding | 99.99% |
| Post Issue Share Holding | 72.96% |
Royalarc Electrodes IPO Prospectus
Company Contact Information
| Royalarc Electrodes Limited 72 B, Bombay Talkies Compound, S.V. Road Malad West, Mumbai, , 400064 Phone: +91 78880 00553 Email: cs@royalarc.in Website: https://royalarc.in/ |
Royalarc Electrodes IPO Registrar
| Kfin Technologies Limited Phone: 04067162222, 04079611000 Email: rael.ipo@kfintech.com Website: https://kosmic.kfintech.com/ipostatus/ |
Royalarc Electrodes IPO Lead Manager(s)
| 1. Fedex Securities Pvt Ltd |
Royalarc Electrodes IPO FAQs
| What is Royalarc Electrodes IPO? Royalarc Electrodes IPO is a SME IPO. The issue is priced at ₹114 to ₹120 per equity share. The IPO is to be listed on NSE SME. |
| When Royalarc Electrodes IPO will open? The IPO is to open on 14 February 2025 for QIB, NII, and Retail Investors. |
| What is Royalarc Electrodes IPO Investors Portion? The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%. |
| How to Apply the Royalarc Electrodes IPO? You can apply Royalarc Electrodes IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Royalarc Electrodes IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Royalarc Electrodes IPO”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Royalarc Electrodes IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Royalarc Electrodes IPO“. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Royalarc Electrodes IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Royalarc Electrodes IPO”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Royalarc Electrodes IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Royalarc Electrodes IPO“. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Royalarc Electrodes IPO Size? Royalarc Electrodes IPO size is ₹36.00 Crore. |
| What is the Royalarc Electrodes IPO Price Band? Royalarc Electrodes IPO Price Band is ₹114 to ₹120. |
| What is Royalarc Electrodes IPO Minimum and Maximum Lot Size for Retail? The minimum bid is 1200 Shares with ₹1,44,000 amount while the maximum bid is 1200 Shares with ₹1,44,000. |
| What is the Royalarc Electrodes IPO Allotment Date? Royalarc Electrodes IPO allotment date is 19 February 2025. |
| What is the Royalarc Electrodes IPO Listing Date? Royalarc Electrodes IPO listing date is 21 February 2025. The IPO is to be listed on NSE SME. |
