Royalarc Electrodes Limited (NSE SME)
Feb 14, 2025 - Feb 18, 2025
| Price | ₹114 - ₹120 |
| Premium | ₹0 |
|---|---|
| Lot size | 1200 |
| Allotment | Feb 20, 2025 |
| Listing | Feb 24, 2025 |
| Category | Lot(s) | Qty | Amount | Reserved |
|---|---|---|---|---|
| Retail | 1 | 1200 | 144000 | 834 |
| HNI | 2 | 2400 | 288000 | 371 |
Last updated on 18-Feb-2025 18:09:02
| Category | Offered | Applied | Times |
|---|---|---|---|
| QIB | 560400 | 584400 | 1.04 |
| NIB | 445200 | 565200 | 1.27 |
| RETAIL | 1000800 | 2205600 | 2.2 |
| Total | 2006400 | 3355200 | 1.67 |
| Application Wise Breakup | |
|---|---|
| Category | App. Received |
| QIB | 3 |
| NIB | 65 |
| RETAIL | 1838 |
| Total | 1906 |
| Subscription Demand (in ₹ crore) | |||
|---|---|---|---|
| Category | Offered | Demand | Times |
| QIB | 6.72 | 7.01 | 1.04 |
| NIB | 5.34 | 6.78 | 1.27 |
| RETAIL | 12.01 | 26.47 | 2.2 |
| Total | 24.08 | 40.26 | 1.67 |
| QIB Interest Cost Per Share (7 Days) | |||||
|---|---|---|---|---|---|
| @7% ₹0.2 | @8% ₹0.2 | @9% ₹0.2 | @10% ₹0.2 | @11% ₹0.3 | @12% ₹0.3 |
| HNI Interest Cost Per Share (7 Days) | |||||
|---|---|---|---|---|---|
| @7% ₹0.2 | @8% ₹0.2 | @9% ₹0.3 | @10% ₹0.3 | @11% ₹0.3 | @12% ₹0.4 |
IPO Reservation
| Investor Category | Shares Offered | No. of Shares |
|---|---|---|
| Retail | 33.36% | 1000800 |
| NII (HNI) | 14.84% | 445200 |
| Anchor | 28.00% | 840000 |
| QIB | 18.68% | 560400 |
| Market Maker | 5.12% | 153600 |
| Total | 100.00% | 3000000 |
Royalarc Electrodes IPO Details
| 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 |
| Market Maker | Shreni Shares |
Key Performance Indicator
| KPI | Sep-24 | Mar-24 | Mar-23 |
|---|---|---|---|
| ROE | 7.24% | 32.85% | 37.43% |
| ROCE | 8.92% | 37.73% | 41.81% |
| RONW | 6.99% | 28.21% | 31.53% |
| EPS (basic) | 3.41 | 12.82 | 10.29 |
| P/E Pre IPO | 9.36 | ||
| P/E post IPO | 20.98 |
Company Financials In Crores
| Period | Sep-24 | Mar-24 | Mar-23 | Mar-22 |
|---|---|---|---|---|
| Assets | 56 | 52 | 44 | 42 |
| Revenue | 46 | 101 | 98 | 65 |
| Profit | 3 | 12 | 10 | 2 |
| Net Worth | 45 | 42 | 30 | 21 |
| Reserves | 36 | 33 | 29 | 19 |
| Borrowing | 2 | 0 | 1 | 8 |
About Company
Royalarc Electrodes Limited, incorporated in 1996, is engaged in manufacturing welding consumables, including welding electrodes, flux-cored wire, and MIG/TIG wires, used in welding applications for tanks, boilers, heavy structures, beams, pipes, cylinders, and pressure vessels across industries such as railways, roadways, airports, refineries, shipyards, mining, sugar, telecom, thermal power stations, and PEB sectors. The company also trades ancillary and incidental products like wheels, electro slag, welding flux-cored wire, electro slag strip cladding, saw flux, and TIG/MIG wires. Its state-of-the-art manufacturing facility spans 269,198 sq. ft. in Zaroli, Umbergaon, Gujarat, utilizing raw materials like copper-coated wire, MS strips, MS wire, SS strips, SS wire, nickel wire, and ferro alloy powder to produce standardized and customized products for domestic and international markets, exporting to over 20 countries. Royalarc's products are certified by the American Bureau of Shipping (ABS), Indian Boilers Regulation (IBR), and Bureau of Indian Standards (BIS), with quality inspections outsourced to NABL-accredited laboratories. The company's product range includes welding electrodes, such as mild steel, low hydrogen, stainless steel, hard-facing, cutting, and non-ferrous types, as well as flux-cored wire for high deposition rates, joining, wear protection, and repairs in various specifications. While it currently trades TIG/MIG wires due to market conditions, it may resume manufacturing based on demand. As of December 31, 2024, the company employs 144 permanent employees.
Geographically Spread Distribution Network – Royalarc Electrodes Limited has an extensive distribution network, enabling efficient market penetration across domestic and international regions.
Long-Standing Customer Relationships – The company has established strong ties with clients in key industries like railways, refineries, and power stations, ensuring sustained business growth.
Consistent Financial Performance – Royalarc has demonstrated stable financial growth, supported by efficient operations, quality products, and a well-diversified market presence.
Dependence on Domestic Market – A significant portion of revenue comes from the domestic market, making the company vulnerable to economic downturns and industry-specific challenges in India.
Single Manufacturing Facility Risk – Operating from a single plant in Gujarat exposes the company to risks from social unrest, natural disasters, or operational disruptions, which could impact production and financial stability.
Expansion-Related Challenges – Proposed facility expansion may face delays, cost overruns, or operational inefficiencies, potentially affecting growth, cash flows, and overall financial performance.
Phone: 04067162222, 04079611000
Email: rael.ipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/