Royalarc Electrodes IPO GMP Today, Date, Price, Subscription Status 

Royalarc Electrodes IPO Overview

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 Important dates

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

IPO Open Date	Fri, Feb 14, 2025
IPO Close Date	Tue, Feb 18, 2025
Tentative Allotment	Wed, Feb 19, 2025
Initiation of Refunds	Thu, Feb 20, 2025
Credit of Shares to Demat	Thu, Feb 20, 2025
Tentative Listing Date	Fri, Feb 21, 2025
Cut-off time for UPI mandate confirmation	5 PM on February 18, 2025

Royalarc Electrodes IPO Financial Performance

Period Ended	30 Sep 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	55.69	52.25	43.85	42.48
Revenue	46.06	100.99	98.03	64.82
Profit After Tax	3.18	11.93	9.57	2.12
Net Worth	45.45	42.27	30.35	20.78
Reserves and Surplus	36.15	32.97	28.53	18.96
Total Borrowing	2.02	0.2	1.42	7.81
Amount in ₹ Crore

Royalarc Electrodes IPO Key Performance Indicator

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

KPI as of Sun, Mar 31, 2024.

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

Royalarc Electrodes IPO Lot Size

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

Application	Lots	Shares	Amount
Retail (Min)	1	1200	₹1,44,000
Retail (Max)	1	1200	₹1,44,000
HNI (Min)	2	2,400	₹2,88,000
Lot Size Calculator

Royalarc Electrodes IPO Details

IPO Date	February 14, 2025 to February 18, 2025
Listing Date	[.]
Face Value	₹10 per share
Issue Price Band	₹114 to ₹120 per share
Lot Size	1,200 Shares
Total Issue Size	30,00,000 shares (aggregating up to ₹36.00 Cr)
Fresh Issue	18,00,000 shares (aggregating up to ₹21.60 Cr)
Offer for Sale	12,00,000 shares of ₹10 (aggregating up to ₹14.40 Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE SME
Share Holding Pre Issue	93,00,200 shares
Share Holding Post Issue	1,11,00,200 shares
Market Maker Portion	1,53,600 shares Shreni Shares Limited

Royalarc Electrodes IPO Company Overview and Services

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

Royalarc Electrodes IPO SWOT Analysis

Strengths:

• Established Brand and Reputation: Royalarc has a long history in the welding consumables industry, which can translate to brand recognition and customer loyalty.
• Wide Product Range: Manufacturing a variety of welding consumables like electrodes, flux cored wire, and MIG/TIG wires caters to diverse customer needs.
• Manufacturing Capabilities: The company has a well-equipped manufacturing facility with testing labs, enabling them to produce both standardized and customized products.
• Quality Focus: Adhering to international standards and having quality assurance equipment can ensure product quality and customer satisfaction.
• Experienced Management: A skilled management team can be crucial for navigating the challenges of the manufacturing industry.
• Export Presence: Exporting to 20+ countries indicates a global reach and potential for further international expansion.

Weaknesses:

• Dependence on Raw Materials: The company’s production relies on raw materials like copper, steel, and ferro alloys, making it vulnerable to fluctuations in their prices.
• Competition: The welding consumables market is competitive, with both established players and smaller manufacturers.
• Financial Performance: Analyzing the company’s financial statements is crucial to identify any potential weaknesses in profitability, debt levels, or cash flow.

Opportunities:

• Infrastructure Development: Increased infrastructure spending can drive demand for welding consumables in various sectors.
• Manufacturing Sector Growth: Government initiatives like “Make in India” can boost domestic manufacturing and increase demand for welding products.
• Technological Advancements: Adopting new technologies in manufacturing processes can improve efficiency and product quality.
• Expansion: The IPO proceeds can be used to expand production capacity, upgrade technology, or enter new markets.

Threats:

• Economic Downturn: Economic slowdowns can impact demand for welding consumables across industries.
• Raw Material Price Volatility: Fluctuations in raw material prices can significantly impact production costs and profitability.
• Environmental Regulations: Stricter environmental regulations can increase compliance costs for manufacturing companies.
• Competition from Imports: Cheaper imports can pose a threat to domestic manufacturers.

Additional Considerations:

• IPO Objectives: Understanding how Royalarc plans to use the IPO proceeds is essential for evaluating its growth prospects.
• Industry Trends: Keeping track of emerging trends like automation, robotics, and sustainable manufacturing practices can provide insights into the company’s future direction.
• Risk Factors: Analyzing the risk factors outlined in the IPO prospectus can help potential investors assess the challenges and uncertainties associated with the investment.

Royalarc Electrodes IPO GMP Details

Royalarc Electrodes IPO Subscription Status

Note that the bidding starts at 10 AM and ends at 5 PM on the days when the public issue is open.

Royalarc Electrodes IPO Allotment status

Royalarc Electrodes IPO allotment is expected on Wednesday, February 19, 2025.

Royalarc Electrodes IPO allotment status is not available at this time. Royalarc Electrodes IPO – The allotment status will be available once the basis of allotment is finalized. Please revisit us to check the latest updates for Royalarc Electrodes Limited IPO allotment status.

Royalarc Electrodes IPO Contact Details

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/

Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.

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