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Royalarc Electrodes Limited IPO
Royal Arc Electrodes Ltd
₹1,36,800 /1200 sharesMinimum Investment
Royalarc Electrodes Limited IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| -- | ₹120.00 | ₹120.00 | ₹0.00 (0.00%) |
Royalarc Electrodes Limited IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 14 Feb ‘25 - 18 Feb ‘25 | ₹1,36,800 | 1,200 | ₹114 - ₹120 |
| Issue Size | IPO Doc |
|---|---|
| 36.00Cr | RHP PDF |
Subscription rate
As of 18 Feb'25, 05:00 PM
| Qualified Institutional Buyers | 1.04x |
| Non-Institutional Investor | 1.27x |
| Retail Individual Investor | 2.13x |
| Total | 1.52x |
About Royalarc Electrodes Limited
Founded in
1996
Managing director
Mr. Bipin Sanghvi
Parent organisation
Royal Arc Electrodes Ltd
Strengths & Financials of Royalarc Electrodes Limited
Strengths
Risks
The company claims to have long-term relationships with customers across various industries. The company caters to a diverse clientele, ranging from established industry players to small and medium-sized enterprises.
The company serves both domestic customers and exports its products to over 20 countries.
The company's products hold certifications from key regulatory bodies, including the American Bureau of Shipping (ABS), Indian Boilers Regulation (IBR), and Bureau of Indian Standards (BIS), ensuring compliance with industry standards.
To meet client specifications, product inspection and quality testing are conducted by NABL-accredited third-party inspection agencies, ensuring high standards of reliability and performance.
The company manufactures welding consumables, including welding electrodes and flux-cored wire, with an installed production capacity of 18,000 MTPA.
The company states that it has enhanced its manufacturing process by incorporating XRF machinery. Additionally, a 450 KWp rooftop solar installation has been set up to reduce reliance on the grid, lowering energy costs and promoting sustainability.
The company’s revenue from operations increased from Rs 62.91 crore in FY22 to Rs 96.94 crore in FY23 to Rs 99.79 crore in FY24. The profit after tax (PAT) has also increased from Rs 2.12 crore in FY22 to Rs 9.57 crore in FY23 to Rs 11.93 crore in FY24.
The company’s revenue largely depends on the domestic market. The domestic market contributed Rs 38.95 crore (85.40%) for the six months ending in September and Rs 85.37 crore (85.56%), Rs 79.82 crore (82.34%), and Rs 46.06 crore (73.22%) to the revenue from operations in FY24, FY23, and FY22, respectively. Any negative changes in the domestic market could adversely impact the company’s financial performance.
The company’s operations rely on a single manufacturing unit that is located in District Valsad, Gujarat. Any disruption in the business environment in the area could adversely affect production and financial stability.
A large portion of revenue comes from a few key customers. The top 10 customers contributed Rs 21.82 crore (47.84%) for the six months ending in September and Rs 44.10 crore (44.19%), Rs 43.31 crore (44.68%), and Rs 33.60 crore (53.40%) to the revenue from operations in FY24, FY23, and FY22, respectively. Any loss of one or more of these customers or reduced demand for the company's products could adversely impact the company’s operations and financial performance.
A major share of domestic revenue comes from the western and central zones. The western zone contributed Rs 22.83 crore (50.06%) for the six months ending in September and Rs 45.18 crore (45.28%), Rs 42.65 crore (44.00%), and Rs 28.49 crore (45.29%) to the revenue from operations in FY24, FY23, and FY22, respectively. The central zone accounted for Rs 6.68 crore (14.64%) for the same six months and Rs 17.50 crore (17.54%), Rs 18.31 crore (18.89%), and Rs 9.38 crore (14.91%) of the revenue from operations in FY24, FY23, and FY22, respectively. Any adverse developments in these regions could hurt the company’s business performance.
The company, its directors and promoters, are involved in certain legal cases. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
Royalarc Electrodes Limited Financials
*All values are in Rs. Cr
No Graph Data To Display
Application Details of Royalarc Electrodes Limited IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹114 - 120 | ₹2 - 5 Lakh |
| High Networth Individual | ₹114 - 120 | ₹2 - 5 Lakh |
For Royalarc Electrodes Limited IPO, eligible investors can apply as Regular.