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Royalarc Electrodes IPO
Price Band
₹114.0–120.0
Issue Size
₹36.0 Cr
Lot Size
1,200 shares
Min Investment
₹144,000
GMP
—
Issue Price
₹120.0
Royalarc Electrodes IPO AI Summary
- Royalarc Electrodes IPO is listed on NSE SME.
- Price band: ₹114.0–₹120.0 per share, lot size 1,200 shares (min. investment ₹144,000).
- Subscription window: 14 Feb–18 Feb 2025, listing on 24 Feb 2025.
Royalarc Electrodes Limited is entering the market with an IPO to fund its growth and operational needs. The company has shown consistent revenue and profit growth over the past few years, although the most recent figures are not directly comparable as they represent a 9-month period. Investors should consider their risk profile and the company's market position before investing.
TopFund is not SEBI-registered — this is educational analysis, not personalized investment advice.
Royalarc Electrodes IPO — Third-Party Research Views
Reviews below reflect analyst calls made before this IPO closed on 18 Feb 2025 — not a current signal.
Recommendations are sourced from third-party research firms and are not TopFund's own investment advice.
Important Dates
Subscription Status
Subscription data unavailable
Royalarc Electrodes IPO Grey Market Premium (GMP) Today
GMP not available yet
Grey Market Premium is updated daily. Check back closer to the listing date.
About the Company
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
Company Financials (₹ Cr)
As of 2024-09-30
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 55.69 | 52.25 | 43.85 | 42.48 |
| Total Income | 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 | 0.20 | 1.42 | 7.81 |
Key Ratios
EPS
₹12.82
NAV
₹45.45
ROE
32.85%
ROCE
37.73%
RoNW
28.21%
P/B Value
2.64
P/E Ratio
9.36
Market Cap
₹133.20 Cr
PAT Margin
11.95%
Peer Comparison
| Company | NAV | RoNW | P/E (x) | EPS Basic | EPS Diluted |
|---|---|---|---|---|---|
| Rasi Electrodes Ltd. | 10.47 | 9.83% | 28.43 | 29 | 1.02 |
| Gee Ltd. | 78.61 | 6.29% | 29.17 | 4.95 | 4.95 |
| Ador Welding Ltd. | 266.49 | 17.44% | 21.08 | 46.46 | 46.46 |
| Esab India Ltd. | 198.87 | 53.25% | 46.94 | 105.9 | 105.9 |
| Royal Arc Electrodes Limited This IPO | 45.45 | 28.21% | — | 12.82 | 12.82 |
Promoters
Bipin Sanghvi, Tarulata Sanghvi, Hardik Sanghvi and Swagat Sanghvi
Objects of the Issue
The Company proposes to utilise the Net Proceeds from the Issue towards the following objects: # Issue Objects Est Amt (₹ Cr.) 1 Funding towards the expansion of the existing manufacturing facility situated at Village Zaroli, Umbergaon Valsad, Gujarat, Bharat 4.89 2 Funding of Working Capital Requirement of the company 14.00 3 General Corporate Purposes 0.55 4 Issue expenses 3.60 Total 23.04
IPO Evaluation
Generated 23 Sep 2026Revenue Trend
Total income was ₹64.82 Cr in the year ending 31 Mar 2022, increasing to ₹98.03 Cr by 31 Mar 2023, and further rising to ₹100.99 Cr in the year ending 31 Mar 2024. However, the most recent figure of ₹46.06 Cr as of 30 Sep 2024 is a 9-month figure, not a full year, so isn't directly comparable.
Profit Trend
Profit After Tax was ₹2.12 Cr in the year ending 31 Mar 2022, which grew to ₹9.57 Cr by 31 Mar 2023, and further increased to ₹11.93 Cr in the year ending 31 Mar 2024. The most recent figure of ₹3.18 Cr as of 30 Sep 2024 is also a 9-month figure, not a full year, so isn't directly comparable.
Valuation
At the issue price of ₹120.0, the company's implied P/E ratio is approximately 9.36, compared to peers trading within a range of 21.08 to 46.94.
Grey Market Premium, Explained
The grey market refers to the unofficial trading of shares before they are listed on the stock exchange. Grey market premium (GMP) indicates the expected listing price of an IPO based on demand and supply in this unofficial market. A higher GMP suggests strong demand, while a lower GMP indicates weaker demand.
Who This IPO Suits
Investors comfortable with short-term volatility and a long-term horizon typically weigh IPOs like this against their investment goals and risk tolerance. It's important to consider the company's growth potential and market conditions.
Who May Want to Wait
Investors who prefer stable, established companies with predictable earnings may want to avoid IPOs like this, which can be subject to market fluctuations and operational risks.
IPO Timeline, Explained
The IPO opens for subscription on February 14, 2025, and closes on February 18, 2025. Allotment of shares will be done on February 19, 2025, with the listing expected on February 24, 2025.
Listing Gains — The Risk
Listing gains refer to the profits made when shares of a company are traded on the stock exchange for the first time. However, these gains are not guaranteed and can be influenced by market conditions, investor sentiment, and the company's performance. Investors should be prepared for the possibility of price volatility on the listing day.
This evaluation is generated from Royalarc Electrodes's own public IPO filing data for educational purposes and is not investment advice or a recommendation to apply, subscribe to, or avoid this issue — see Broker Recommendations below for named third-party research views (clearly attributed, not TopFund's own). TopFund is not a SEBI-registered investment adviser — see our Disclaimer.
Frequently Asked Questions
What is the price band of Royalarc Electrodes IPO?
The price band of Royalarc Electrodes IPO is ₹114.0–₹120.0 per share.
When does Royalarc Electrodes IPO open and close?
Royalarc Electrodes IPO opens on 14 February 2025 and closes on 18 February 2025.
When does Royalarc Electrodes IPO list on the stock exchange?
Royalarc Electrodes IPO listed on 24 February 2025 at ₹120.0.
What is the lot size for Royalarc Electrodes IPO?
The lot size for Royalarc Electrodes IPO is 1200 shares, requiring a minimum investment of ₹144,000.
What is the price band for the IPO?
The price band for the IPO is ₹114.0 to ₹120.0.
What is the minimum investment amount?
The minimum investment amount is ₹144,000.0.
What is the lot size for this IPO?
The lot size for this IPO is 1200 shares.
When does the IPO open and close?
The IPO opens on February 14, 2025, and closes on February 18, 2025.
When is the listing date?
The listing date is expected to be February 24, 2025.
Issue Details
Investor Allocation
Registrar
Lead Managers / Book Running
IPO Timeline
Open
14 Feb 2025
Close
18 Feb 2025
Allotment
19 Feb 2025
Listing
24 Feb 2025
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