August 21, 2025
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Arc Insulation IPO Key Dates
| Anchor Investor Subscription | |
| IPO opens on | 21 August 2025 |
| IPO Closes on | 25 August 2025 |
| Allotment on | 26 August 2025 |
| Credit of shares on | 28 August 2025 |
| Tentative Listing on | 29 August 2025 |
Arc Insulation IPO Condenses Verdict
Suitable for investors with higher risk appetite who can handle SME liquidity constraints and working capital risks. Conservative investors may wait and track post-listing performance before committing.
Arc Insulation IPO Final Subscription Tally
| Size Rs. – Crore | ||||
| QIB | NII x | RII x | Total x | Applications |
| Subscription Review: |
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About Arc Insulation
Incorporated in September 2008, Arc Insulation and Insulators Limited is engaged in the manufacturing of high-performance Glass Fiber Reinforced Polymer (GFRP) products, catering to industries that require corrosion-resistant and lightweight solutions. Its product portfolio includes GFRP rebars, tubes, gratings, and fencing, which are valued for their durability and strength.
The company’s products are widely used across infrastructure, power, cooling towers, chemical processing, electrical substations, marine construction, mining, and composite industries. Over the years, it has introduced innovative GFRP applications particularly in the chemical and marine construction sectors.
Arc Insulation operates its manufacturing facility at Ramdevpur Village, South 24 Parganas, West Bengal, equipped with a Universal Testing Machine and other quality-control equipment to ensure compliance with customer requirements. The company holds ISO 2015 certification for designing, manufacturing, and supplying GFRP products.
The company currently employs eight professionals, including mechanical, structural, civil, and quality engineers, who oversee production and maintain stringent quality standards.
Arc Insulation IPO Details
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Sector: |
|
| IPO opens on | 21 August 2025 |
| IPO closes on | 25 August 2025 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 32,95,000 Shares / Rs 41.19 Crore |
| * Fresh Issue | – |
| * Offer for Sale – | – |
| Market Maker Portion | 1,65,000 Shares |
| Net offer to Public | 31,30,000 Shares Rs. 39.13 Crores |
| Face Value per share | Rs. 10 |
| Price Band | Rs. 119-125 |
| Employee discount | Rs. 0 per share |
| Retail Lot Size | 1000 Shares |
| Listing will at | NSE SME |
How shares are being offered
|
Category |
Shares Offered |
| QIB | Not more than 50% of the Net Issue |
| Retail | Not less than 35% of the Offer |
| NII | Not less than 15% of the Net Issue |
| Application | Lots | Shares | Amount |
| Individual investors (Retail) (Min) | 2 | 2,000 | 2,50,000 |
| Individual investors (Retail) (Max) | 2 | 2,000 | 2,50,000 |
| S-HNI (Min) | 3 | 3,000 | 3,75,000 |
| S-HNI (Max) | 8 | 8,000 | 10,00,000 |
| B-HNI (Min) | 9 | 9,000 | 11,25,000 |
Who are the Promoters of Arc Insulation IPO?
The promoters hold 94.48% of the pre-IPO capital
What are the Objects of Arc Insulation IPO?
The Company proposes to utilize the Net Proceeds from Issue towards funding the following objects
+Capital Expenditure towards set up of Factory shed for New Manufacturing unit Rs. 8.16 Crore
+Purchase of New Office Space Rs. 3.16 Crore
+Repayment/Pre-payment of Certain Debt Facilities including Bridge Finance Rs.1.18 Cr.
+ Working Capital requirements & General Corporate purposes
Arc Insulation IPO Lead Managers
Gretex Corporate Services ltd
| Registered Office of the Company |
| ARC Insulation & Insulators Ltd. Village – Ramdevpur PO-Bawali Bishnupur 2 Parganas South, Bishnupur, 743384, Bishnupur, West Bengal, 743384 |
| Who is the Registrar to the IPO? Maashitla Securities Pvt ltd |
Arc Insulation Financials Snapshot
| Period Ended | 31-Mar-25 | 31-Mar-24 | 31-Mar-23 |
| Assets | 39.3 | 22.42 | 18.27 |
| Total Income | 33.15 | 28.83 | 24.48 |
| Profit After Tax | 8.57 | 6.1 | 2.64 |
| EBITDA | 12.5 | 9.05 | 4.29 |
| Net Worth | 25.22 | 12.45 | 6.35 |
| Reserves and Surplus | 17.97 | 10.74 | 4.64 |
| Total Borrowing | 5.97 | 2.78 | 5.3 |
| Amount in Rs. Crore | |||
Performance Indicators
| KPI | Values |
| ROE | 45.47% |
| ROCE | 49.84% |
| Debt/Equity | 0.24 |
| RoNW | 45.47% |
| PAT Margin | 26.18% |
| EBITDA Margin | 38.22% |
| Price to Book Value | 3.59 |
| EPS-Post | 8.32 |
| PER-Post | 15.06 |
How Arc Insulation IPO compares with the Peers?
| Company Name | P/E (x) | RoNW (%) |
| Arc Insulation and Insulators Limited | 45.47 | |
| Aeron Composite Limited | 12.22 | 13.21 |
# 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.
Arc Insulation IPO Review
by Paresh Gordhandas, CA & Research Analyst
Arc Insulation and Insulators Limited, established in 2008, manufactures Glass Fiber Reinforced Polymer (GFRP) products such as rebars, tubes, gratings, and fencing. These corrosion-resistant, lightweight products cater to infrastructure, power, chemical, marine, and mining sectors. The company operates from South 24 Parganas, West Bengal, and holds an ISO 2015 certification.
Key Takeaways
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Growth: Revenue has grown steadily from Rs. 24.48 crore in FY23 to Rs. 33.15 crore in FY25, showing consistent demand.
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Profitability: PAT rose sharply from Rs. 2.64 crore in FY23 to Rs. 8.57 crore in FY25, reflecting improved margins.
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EBITDA Margin Expansion: From ~17% in FY23 to ~38% in FY25 — a healthy sign.
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Leverage: Borrowings remain moderate at Rs. 5.97 crore, balanced by growing net worth.
⚠️ Risk Factors
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As of 31 March 2025, the company reported:
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High trade receivables = 4.43 months of sales
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Inventory holding = 2.83 months
This working capital cycle is stretched and poses collection & liquidity risks. Any delay in receivables can strain cash flows.
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Small employee base (8 professionals) for a specialized sector may limit scalability.
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As an SME IPO, liquidity post-listing may remain low compared to mainboard peers.
📝 Chanakya Review
Arc Insulation is a niche player in the GFRP products space, catering to diverse industries with strong growth visibility. The company has demonstrated steady revenue growth, improved margins, and rising profitability over the last three years.
However, investors must note the risk of high receivables and inventory levels, which can pressure working capital management. While the IPO valuations need closer scrutiny against listed peers (if any), the company’s growth trajectory and sectoral demand lend it strength.
👉 Verdict: Suitable for investors with higher risk appetite who can handle SME liquidity constraints and working capital risks. Conservative investors may wait and track post-listing performance before committing.
The company manufactures Glass Fiber Reinforced Polymer (GFRP) products like rebars, tubes, gratings, and fencing, used in infrastructure, power, chemical, marine, and mining sectors.
The IPO opens on 21 August 2025 and closes on 25 August 2025. Tentative listing date is 29 August 2025 on NSE SME.
Arc Insulation IPO is a book-built issue of Rs. 41.19 crore with a price band of Rs. 119–125 per share. The minimum lot size is 2,000 shares (Rs. 2.38 lakh investment).
Revenue grew from Rs. 24.5 Cr in FY23 to Rs. 33.1 Cr in FY25, while PAT rose from Rs. 2.6 Cr to Rs. 8.6 Cr. Margins improved significantly, but high receivables and inventory remain a risk.
The company shows strong growth and profitability, but the working capital stress (receivables & inventory) adds risk. It may suit investors with high-risk appetite, while conservative investors should wait and watch post-listing performance.
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