Royalarc Electrodes IPO listed flat on February 24, opening at ₹120 on the NSE SME platform, the same as its issue price, with a 0% listing gain. the last GMP was ₹0, indicating no premium. The listing aligned with GMP expectations, resulting in a flat debut.
Royalarc Electrodes IPO saw an overall subscription of 1.6 times, with 20,06,400 shares offered and 32,01,600 shares bid. Retail investors led with 2.2x subscription, followed by QIBs at 1.04x and NII at 0.92x. The total application count stood at 1,906, reflecting strong investor interest.
Overview of Contents
Details About Electrodes IPO
Royalarc Electrodes IPO is a ₹36 crore Book Built Issue, including a ₹21.60 crore fresh issue and an OFS of 12 lakh shares. The price band is ₹114-₹120 per share, with a 35% retail quota, 50% for QIBs, and 15% for HNIs. Allotment is set for February 19, 2025, with NSE SME listing on February 24..
Electrodes IPO Financial Performance
As of September 30, 2024, Royalarc Electrodes reported total revenue of ₹46.06 crore, while for FY 2024, it stood at ₹100.99 crore, reflecting steady growth from ₹98.03 crore in FY 2023 and ₹64.82 crore in FY 2022. The company’s Profit After Tax (PAT) was ₹3.18 crore as of September 2024, with ₹11.93 crore in FY 2024, up from ₹9.57 crore in FY 2023 and ₹2.12 crore in FY 2022. Net worth increased to ₹45.45 crore in September 2024, supported by ₹36.15 crore in reserves and surplus. Total assets grew to ₹55.69 crore, while total borrowings remained low at ₹2.02 crore, showcasing financial stability.
About Company
Founded in 1996, Royalarc Electrodes Ltd. is a leading manufacturer of welding consumables, serving industries like railways, shipyards, refineries, and power plants. The company also trades ancillary products and operates a 269,198 sq. ft. facility in Gujarat. With exports to 20+ countries and certifications from ABS, IBR, and BIS, Royalarc ensures high-quality standards. Its strengths include a strong global presence, long-term client relationships, and an experienced management team. As of December 31, 2024, the company employs 144 staff, driving its growth and expansion.
Royalarc Electrodes IPO Funds Deployment
- Expansion of the manufacturing plant in Umbergaon, Gujarat.
- Funding for working capital needs.
- General corporate purposes.