What Does Royalarc Electrodes Do?
Royalarc Electrodes Limited is a small and medium enterprise (SME) in the welding industry. The company manufactures welding consumables, which are tools used in welding processes across industries like construction, automotive, and infrastructure. Founded in 1996, the company has grown steadily over the years.
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Quick Information Table
| Category | Details |
|---|---|
| IPO Opening Date | 14th February 2025 |
| IPO Closing Date | 18th February 2025 |
| Price Band | ₹10 to ₹114 per share (Face Value: ₹10) |
| Lot Size | 1 Lot = 1,200 Shares |
| Minimum Investment | Retail: ~₹44,000 (1 Lot) / NII: ~₹2,000,000 (1 Lot) |
| Issue Size | ₹36 Crore (Fresh Issue of 18 Lakh Shares) |
| Listing Date | Expected 21st February 2025 |
| Registrar | Fin Technologies Ltd. |
| Lead Manager | Fedex Securities Pvt. Ltd. |
| Market Maker | Shreni Shares Ltd. |
IPO Details Explained
Price Band & Investment Limits
- Price Band: ₹10 to ₹114 per share.
- Face Value: ₹10 per share.
- Retail Investors:
- 1 Lot = 1,200 Shares → Minimum Investment: ~₹44,000 (₹10 × 1,200 = ₹12,000; discrepancies suggest possible premium pricing).
- Multiple lots increase investment automatically.
- NII/HNI Investors: ~₹2,000,000 per lot.
Reservation of Shares
- Anchor Investors: 28%
- Market Makers: 5.1%
- QIBs (Qualified Institutional Buyers): 18.6%
- NIIs (Non-Institutional Investors): 14.84%
- Retail Investors: 33.33%
Financial Performance: Growth Highlights
Revenue Growth
- FY 2022: ₹64 Crore.
- FY 2024: Over ₹100 Crore (56% growth in 2 years).
Profit After Tax (PAT)
- FY 2022: ₹X Crore (Exact figure unclear due to data gaps).
- FY 2024: ₹11.9 Crore (~463% growth).
Market Cap
Estimated over ₹100 Crore (Post-IPO valuation expected to rise).
Strengths of Royalarc Electrodes
- Industry Experience: 28+ years in welding consumables manufacturing.
- Revenue Growth: Consistent 56% revenue growth in 2 years.
- Profit Surge: PAT increased by ~463% to ₹11.9 Crore.
- SME Advantage: Focused operations allow agility in niche markets.
Risks to Consider
- Market Dependency: Performance tied to construction and manufacturing sectors.
- Limited Public Data: Some financial figures (e.g., FY 2022 PAT) are unclear.
- Price Band Confusion: Discrepancy in minimum investment calculations (₹44,000 vs. ₹12,000). Verify via RHP.
GMP Status (Grey Market Premium)
As of now, GMP data is unavailable. Check updates closer to the IPO date for grey market trends.
How to Apply for the IPO
- Via Brokers: Use trading platforms like Zerodha, Upstox, or Angel One.
- Bank Accounts: Link your ASBA-enabled bank account.
- Cut-Off Price: Select “Cut-Off” to apply at the final price.
Final Review: Should You Invest?
Royalarc Electrodes shows strong revenue and profit growth, making it an attractive SME IPO. However, clarify financial inconsistencies and assess risks before investing.
FAQs
1. When will Royalarc Electrodes IPO list?
Expected on 21st February 2025.
2. What is the lot size?
1 Lot = 1,200 Shares.
3. Is the GMP available?
Not yet. Stay tuned for updates.
Disclaimer: This article provides information only. It is not investment advice. Consult a financial advisor before investing.
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