February 21, 2025
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What was the last grey market premium of Royalarc Electrodes IPO?
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Subscription status of Royalarc Electrodes IPO
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Royalarc Electrodes IPO Price Rs. 120 Lot 1200 shares, Rs. 36.00 Crore |
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| QIB | NII x | RII x | Total x | Applications |
| 1.04 | 0.92 | 2.20 | 1.60 | 1,906 |
| Amount wise bids recd. Rs. ? Crore | ||||
| Note: | ||||
What is the business of Royalarc Electrodes?
Incorporated in 1996, the Company is engaged in the business of manufacturing of welding consumables such as, welding electrodes, flux cored wire, MIG/TIG wires, which finds its application in the welding of tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, etc. which are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, PEB sectors, etc.
Further, the Company is also engaged in the business of trading of ancillary/incidental products like wheels, electro slag, welding flux cored wire, electro slag strip cladding, saw flux and TIG /MIG wires.
It manufactures is products from copper coated wire, MS Strips, MS wire, SS strip, SS wire, nickel wire, ferro alloy powder, etc conforming to international standards, from its highly sophisticated and technically competent manufacturing facility spread over an area of 6.197 acres which is situated at Zaroli, Umbergaon Valsad, Gujarat, Bharat.
Its manufacturing facility is also accredited with ISO 9001:2015 certified by DNV – Business Assurance.
It is capable of manufacturing both standardized as well as customized products. It supplies its products to domestic customer and also exported its products to its customers spread across 20+ countries during the financial period.
Get more information about the company @ https://royalarc.in/
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Royalarc Electrodes IPO Details |
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| IPO opens on | 14 February 2025 |
| IPO closes on | 18 February 2025 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 3000000 Shares / Rs 36 Crore |
| * Fresh Issue | 1800000 Shares / Rs 21.60 Crore |
| * Offer for Sale – | 1200000 shares / Rs. 14.40 crore |
| Market Maker Portion | ? Shares |
| Net offer to Public | ? Shares/ Rs 7.00 Crore |
| Face Value per share | Rs. 10 |
| Price Band | Rs. 120 |
| Employee discount | Rs. 0 per share |
| Retail Lot Size | 1200 Shares |
| Listing will at | NSE SME |
Shares offered in IPO |
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| Shares | Rs. (Crore) | |
| QIB (50%) | ? | |
| HNI (15%) | ? | |
| RII (35%) | ||
| Total Shares | ||
| Retail portion will be oversubscribed by |
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| Forms | ||
| How much Shares to Apply in this IPO? | ||
| Min Retail Application | 1200 Shares | Rs.144000 |
| Min HNI Application | 2400 Shares | Rs. 288000 |
Who are the Promoters of Royalarc Electrodes?
THE PROMOTERS ARE BIPIN SANGHVI, TARULATA SANGHVI, HARDIK SANGHVI AND SWAGAT SANGHVI
What are the Objects of Royalarc Electrodes IPO?
The Company proposes to utilize the net proceeds from the Fresh Issue towards funding the following objects:
1. Funding towards the expansion of our manufacturing facility situated at Village Zaroli, Umbergaon Valsad, Gujarat, Bharat;
2. Funding the working capital requirements of our Company; and
3. General corporate purposes.
Tentative timetable |
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| IPO opens on | 14 February 2025 |
| IPO Closes on | 18 February 2025 |
| IPO Allotment on | 19 February 2025 |
| Refund Initiation | 20 February 2025 |
| Credit of Shares | 20 February 2025 |
| Listing on | 24 February 2025 |
| Registered Office of the Company 72 B, Bombay Talkies Compound, S.V. Road Malad West, Mumbai, Maharashtra, India, 400064 |
| Who is the Lead Manager of this IPO? Fedex Securities Pvt Ltd |
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Who is the Registrar to IPO? |
Royalarc Electrodes IPO GMP grey market premium, review, Subscription, allotment, listing estimate
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Royalarc Electrodes IPO Financial & Analytical Ratios |
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| Year | Total Income |
Net Profit |
EPS | RoNW |
| Rs.in Crore | Rs.in Crore | Rs. | % | |
| 2021-22 | 64.82 | 2.12 | 2.28 | |
| 2022-23 | 98.03 | 9.56 | 10.29 | |
| 2023-24 | 100.99 | 11.92 | 12.82 | 28.21 |
| Book Value of the Share on 31.03.2024 |
45.45 | |||
| BV of the Share at cap price after IPO |
Rs. | |||
| Offer Price/upper band | Rs. | 120 | ||
Key Performance
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| Price/EPS of 23-24 | 9.36 |
| Price/BV Ratio | 2.64 |
| Debt/Equity Ratio | ? |
How Royalarc ElectrodesIPO compares with the Peers?
| As per RHP | FV | PE | RoNW |
| Ratio | Ratio | ||
| Royalarc | 9.36 | 28.21 | |
| Esab India | 59.68 | 53.25 | |
| Ador Welding | 31.14 | 17.44 | |
| Gee ltd | 24.55 | 6.29 | |
| Rasi Electrodes | 31.52 | 9.83 | |
| 9.83 |
# This is only coverage of News related to Grey Market Premium & subject to rates. We do not deal in grey market premium. We do not recommend dealing in Grey Market. Investment decision based on Grey Market trends can be faulty.
Royalarc Electrodes IPO Review by Paresh Gordhandas, CA & Research Analyst.
Incorporated in 1996, the Company is engaged in the business of manufacturing of welding consumables such as, welding electrodes, flux cored wire, MIG/TIG wires, which finds its application in the welding of tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, etc. which are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, PEB sectors, etc.
The company has shown sharp rise in the total revenue and the net profits during last 3 years prior to the IPO. The total income has moved up to Rs. 100. 99 Crore in 2023-24 from Rs. 64.82 Crore in 2021-22. Whereas its net profit has moved up to Rs. 11.92Crore in 2023-24 from Rs. 2.12 crore in 2021-22. One interesting part is its ratio of cost of materials expenses to total revenue has declined from 72.46% in 2021-22 to 61.13% in 2023-24. Normally due to inflation and other factors, this ratio remains at least at same level, whereas here it has declined sharply and that is one of the reasons for sharp rise in the net profit during 2023-24. We are unable to give any comment on this aspect.
Because of the sharp rise in the net profit during 2023-24, the shares appear to be offered at reasonable valuation.
+ from fundamental angle: So-So
+ from grey market angle:
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