IPO Details
Bidding Dates
14 Feb 25 - 18 Feb 25
Price Range ₹
114 - 120
Total Equity
₹ 25.92Cr
Lot Size
1200
Exchange Status
NSE
IPO Doc
Subscription Rate
Non-Institutional Investor
0.00×
Qualified Institutional Buyers
0.00×
Employees
0.00×
Retail Investors
0.00×
Total subscription Rate
0.00×
IPO Timeline
Offer start
14 Feb 2025
Offer end
18 Feb 2025
Allotment
19 Feb 2025
Refund initiation
20 Feb 2025
Demat transfer
20 Feb 2025
Listing
24 Feb 2025
Offer start
14 Feb 2025
Offer end
18 Feb 2025
Allotment
19 Feb 2025
Refund initiation
20 Feb 2025
Demat transfer
20 Feb 2025
Listing
24 Feb 2025
About Company
Incorporated in 1996, Royalarc Electrodes Limited specializes in manufacturing welding consumables, including welding electrodes, flux-cored wire, and MIG/TIG wires. The company’s welding consumables are widely used for welding applications in tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, and more. These products serve various industries, including railways, roadways, airports, refineries, shipyards, mining, sugar, telecom, thermal power plants, and pre-engineered buildings (PEB). In addition to manufacturing, the company also trades ancillary and related products such as wheels, electro slag, welding flux-cored wire, electro slag strip cladding, saw flux, and TIG/MIG wires. Royalarc Electrodes Limited operates a state-of-the-art manufacturing facility in Zaroli, Umbergaon, Gujarat, spanning 269,198 sq. ft. The company utilizes raw materials such as copper-coated wire, MS strips, MS wire, SS strips, SS wire, nickel wire, and ferro alloy powder in its production processes. The company offers both standardized and customized products, catering to domestic markets and exporting to over 20 countries. Its products are certified by the American Bureau of Shipping (ABS), Indian Boilers Regulation (IBR), and Bureau of Indian Standards (BIS), with quality inspections conducted through NABL-accredited laboratories. Product Offerings: - Welding Electrodes: Manufacturing a variety of welding electrodes, including mild steel, low hydrogen, stainless steel, hard-facing, cutting, and non-ferrous variants. - Flux-Cored Wire: Used in flux-cored arc welding (FCAW) for high deposition rates, joining, wear protection, and repairs, available in various sizes and specifications. - MIG/TIG Wires: While the company specializes in welding consumables, including electrodes, flux-cored wire, and MIG/TIG wire, it currently trades TIG/MIG wire due to market conditions. However, manufacturing may resume based on demand. As of December 31, 2024, Royalarc Electrodes Limited employs 144 permanent staff members.
Year Founded
15-01-1996
Promotor Details
Bipin Sanghvi
Promoter Holdings Details
| Particular | Pre-IPO | Post-IPO |
|---|---|---|
| Percentage | 99.99 | 72.96 |
| Share Capital | 9299178 | 8099178 |
Offer to Public
21,60,000.00 Cr
Project Details
- Funding of working capital requirements of the Company - 140cr
- General Corporate Purposes - 5.53cr
- Funding towards the expansion of the existing - 48.87cr
Objectives
- Funding towards the expansion of our manufacturing facility situated at Village Zaroli, Umbergaon Valsad, Gujarat, Bharat.Funding the working capital requirements of our Company.General corporate purposes.
Highlights
- The company has a strong geographical presence across India and exports to over 20 countries, catering to diverse markets worldwide.
- Serving multiple industries such as railways, refineries, shipyards, telecom, and power plants, the company benefits from a broad customer network, reducing dependency on any single sector.
- A well-established network of dealers, distributors, and direct sales channels ensures efficient product availability and customer service.
- Stringent quality control, certifications from ABS, IBR, and BIS, and continuous investments in technology and process improvements enhance product reliability and performance.
- The company leverages energy-efficient manufacturing processes, including solar power and gas-fired furnaces, ensuring lower costs and environmental sustainability.
Challenges
- A significant portion of revenue comes from India, making the company vulnerable to domestic economic fluctuations and market demand shifts.
- Operating from a single production unit in Gujarat exposes the company to potential disruptions due to operational risks, natural disasters, or supply chain interruptions.
- A dependency on major clients means that the loss of any key customer could significantly impact revenue stability and business growth.
- Fluctuations in the cost of essential raw materials, such as copper-coated wire, steel, and alloys, can affect profitability and cost management.
- Intense competition in the welding consumables industry puts pressure on pricing and margins, while regulatory and compliance risks may lead to legal or financial implications.
Financials
| Years | Total Assets | Share Capital | Profit After Tax | Consolidated Net Profit | Adjusted EPS |
|---|---|---|---|---|---|
| 2021 | 3,96,465.50 | 18,200.00 | 78,59,503.00 | 78,59,503.00 | 0.8451 |
| 2020 | 39,37,71,000.00 | 1,82,00,000.00 | 1,43,19,322.00 | 1,43,19,322.00 | 1.5397 |
| 2024 | 5,224.62 | 930.02 | 212.13 | 212.13 | 2.2809 |
| 2022 | 4,247.84 | 182.00 | 96,65,943.00 | 96,65,943.00 | 1.0393 |
| 2023 | 4,385.40 | 182.00 | 1,43,19,322.00 | 1,43,19,322.00 | 1.5397 |
