Royal Arc Electrodes Ltd IPO
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Royal Arc Electrodes Ltd IPO Details
Details
| Total Shares Offered | Offer to Public | Retail Max (Shares) | Pre Issue Promoters Holding | Exchange | Issue size |
|---|---|---|---|---|---|
| ₹ 30 L | ₹ 12 L | ₹ 10.01 L | ₹ 92.99 L | NSE | ₹ 36 Cr |
| IPO Open Date | Close Date | Lot Size | Min Investment | Issue Type | Listing Date |
| 14 Feb, 25 | 18 Feb, 25 | 1200 | ₹ 1,36,800 | Book Building - SME | 24 Feb, 25 |
Royal Arc Electrodes Ltd IPO Dates
Details
| Sector | Type |
|---|---|
| Sector | Electrodes - Welding Equipment |
| Sub Sector | NA |
| Issue Type | Book Building - SME |
Subscription Status
*Values are in Lakhs
| Investor Type | Subscription Times | Shares Offered* | Shares Bid* |
|---|---|---|---|
| QIB | 0.42x | 1400400 | 584400 |
| NII | 1.27x | 445200 | 565200 |
| Retail | 2.2x | 1000800 | 2205600 |
| Employee | 0x | 0 | 0 |
| Total | 1.12x | 3000000 | 3355200 |
Subscription Status
Investor Type
QIB
NII
Retail
Employee
Total
*Values are in Lakhs
Royal Arc Electrodes Ltd Financial Status
Income Statement
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 18.07 | 14.90 | 4.58 |
| EBITDA | 19.88 | 16.74 | 6.35 |
| PAT | 11.93 | 9.57 | 2.12 |
| Total Assets | 32.06 | 27.99 | 26.80 |
| Share Capital | 9.30 | 1.82 | 1.82 |
| Total Borrowings | 1.39 | 2.89 | 9.26 |
| Operating Activities (Net Cash) | 13.74 | 11.41 | 3.89 |
| Investing Activities (Net Cash) | 1.24 | 1.33 | -0.33 |
| Financing Activities (Net Cash) | 1.39 | 2.89 | 9.26 |
| Net Cashflow | 0.96 | 3.02 | 0.05 |
Particulars (in Rs. Crores)
Revenue from operations
EBITDA
PAT
Total Assets
Share Capital
Total Borrowings
Operating Activities (Net Cash)
Investing Activities (Net Cash)
Financing Activities (Net Cash)
Net Cashflow
About Royal Arc Electrodes Ltd
Our Company was incorporated in Mumbai, Maharashtra, as a Royalarc Electrodes Private Limited, a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated January 15, 1996, issued by the Additional Registrar of Companies, Maharashtra. Thereafter, our Company was converted from a private limited company to a public limited company pursuant to a special resolution passed by our Shareholders at the Extraordinary General Meeting held on March 09, 2005, and consequent upon conversion, the name of our Company was changed to Royalarc Electrodes Limited and a certificate of change of name dated March 31, 2005, issued by Registrar of Companies, Maharashtra, Mumbai. Subsequently, the name of our Company was changed to Royal Arc Electrodes Limited pursuant to the special resolution passed by the Shareholders of our Company at the Extra-Ordinary General Meeting held on May 29, 2023. The Registrar of Companies, Maharashtra, Mumbai issued a fresh certificate of incorporation dated June 16, 2023, upon change of the name of the Company.
Manufacturing is emerging as an integral pillar in the country's economic growth, thanks to the performance of key sectors like automotive, engineering, chemicals, pharmaceuticals, and consumer durables. The Indian manufacturing industry generated 16-17% of India's GDP pre-pandemic and is projected to be one of the fastest growing sectors. The machine tool industry was literally the nuts and bolts of the manufacturing industry in India.
Incorporated in 1996, our Company is engaged in the business of manufacturing of welding electrodes, flux cored wires, MIG/TIG wires. We are capable of manufacturing both standardized as well as customized products. Further, our Company is also engaged in the business of trading of ancillary/ incidental products like abrasive wheels, welding flux, saw wire, saw flux, and special TIG /MIG. We supply our products to domestic customers and export customers.
Peer Comparison:
- Esab India Ltd
- GEE Ltd
- Rasi Electrodes Ltd
Royal Arc Electrodes Ltd IPO Key Points
Strengths
- Geographically spread distribution network.
- Long-standing relationships with customers across industries.
- Consistent financial performance.
- Experienced promoters and strong management team.
Risk
- The company revenue is dependent on the domestic market since, it contributes significantly to its total revenue from operations. Any adverse changes in the conditions affecting domestic market could adversely affect its business, results of operations and financial condition.
- The company operates only one manufacturing facility and therefore, any localized social unrest, natural disaster, or breakdown of services, in and around its manufacturing facility or any disruption in production at, or shutdown of the company manufacturing facility could have a material adverse effect on its business and financial condition.
- The company may faces several risks associated with the proposed expansion in its existing manufacturing facility, which could hamper the company growth, prospects, cash flows and business and financial condition.
Strategy
- Increasing our manufacturing capacity to focus on the growing demand of our core products.
- Strengthen our brand value and create awareness for our new products.
- Strengthen our marketing network.
- Improving operational efficiencies.
- Geographically spread distribution network.
- Long-standing relationships with customers across industries.
- Consistent financial performance.
- Experienced promoters and strong management team.
How To Apply for Royal Arc Electrodes Ltd IPO Online?
Step 1:
Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.
Step 2:
From the list of open IPOs, select the IPO you want to invest.
Step 3:
Go through the IPO details like lot size, price band, about the company, etc.
Step 4:
Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.
Step 5:
Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.
