Royalarc Electrodes IPO is a book-built issue worth ₹36.00 crores. The offering consists of a fresh issue of 18.00 lakh shares totaling ₹21.60 crores and an offer for sale of 12.00 lakh shares amounting to ₹14.40 crores.
The IPO subscription opened on February 14, 2025, and will close on February 18, 2025. The allotment is expected to be finalized on February 19, 2025. Royalarc Electrodes is set to be listed on the NSE SME, with a tentative listing date of February 21, 2025.
The price band for the Royalarc Electrodes IPO is set between ₹114 and ₹120 per share. The minimum lot size for an application is 1,200 shares. Retail investors are required to invest a minimum of ₹1,36,800, but it is recommended to bid at the cutoff price to avoid oversubscription, which amounts to ₹1,44,000. For High Net-worth Individuals (HNIs), the minimum investment is 2 lots (2,400 shares), totaling ₹2,88,000.
Refer to Royalarc Electrodes IPO RHP for detailed information
Fedex Securities Pvt Ltd is the book-running lead manager for the IPO, while Kfin Technologies Limited serves as the registrar. The market maker for the Royalarc Electrodes IPO is Shreni Shares Limited.
Royalarc Electrodes IPO Details
| IPO Date | February 14, 2025 to February 18, 2025 |
| Face Value | ₹10 per share |
| Issue Price Band | ₹114 to ₹120 per share |
| Lot Size | 1,200 Shares |
| Total Issue Size | 30,00,000 shares (aggregating up to ₹36.00 Cr) |
| Fresh Issue | 18,00,000 shares (aggregating up to ₹21.60 Cr) |
| Offer for Sale | 12,00,000 shares of ₹10 (aggregating up to ₹14.40 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share Holding Pre Issue | 93,00,200 shares |
| Share Holding Post Issue | 1,11,00,200 shares |
| Market Maker Portion | 1,53,600 shares Shreni Shares Limited |
Royalarc Electrodes IPO Timeline
The Royalarc Electrodes IPO opens for subscription on February 14, 2025, and closes on February 18, 2025.
| IPO Open Date | Fri, Feb 14, 2025 |
| IPO Close Date | Tue, Feb 18, 2025 |
| Tentative Allotment | Wed, Feb 19, 2025 |
| Initiation of Refunds | Thu, Feb 20, 2025 |
| Credit of Shares to Demat | Thu, Feb 20, 2025 |
| Tentative Listing Date | Fri, Feb 21, 2025 |
Royalarc Electrodes IPO Lot Size
Investors can bid for a minimum of 1,200 shares and in multiples thereof. The table below outlines the minimum and maximum investment requirements for retail investors and High Net-worth Individuals (HNIs) in terms of shares and investment amount:
| Category | Minimum Shares | Minimum Investment (₹) | Maximum Shares | Maximum Investment (₹) |
|---|---|---|---|---|
| Retail Investors | 1,200 | ₹1,36,800 – ₹1,44,000 | As per limit | As per limit |
| HNI | 2,400 | ₹2,88,000 – ₹2,88,000 | No upper limit | No upper limit |
Royalarc Electrodes IPO Reservation
The Royalarc Electrodes IPO consists of 30,00,000 shares, allocated as follows:
- Qualified Institutional Buyers (QIB): 5,60,400 shares (18.68%)
- Non-Institutional Investors (NII): 4,45,200 shares (14.84%)
- Retail Individual Investors (RII): 10,00,800 shares (33.36%)
- Anchor Investors: 8,40,000 shares (28%)
These allocations ensure a balanced distribution among different investor categories.
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | 8,40,000 (28%) |
| Market Maker Shares Offered | 1,53,600 (5.12%) |
| QIB Shares Offered | 5,60,400 (18.68%) |
| NII (HNI) Shares Offered | 4,45,200 (14.84%) |
| Retail Shares Offered | 10,00,800 (33.36%) |
| Total Shares Offered | 30,00,000 (100%) |
Royalarc Electrodes IPO Promoter Holding
The promoters of Royalarc Electrodes Ltd. are Bipin Sanghvi, Tarulata Sanghvi, Hardik Sanghvi, and Swagat Sanghvi.
| Share Holding Pre Issue | 99.99% |
| Share Holding Post Issue | 72.96% |
About Royalarc Electrodes Limited
Incorporated in 1996, Royalarc Electrodes Limited specializes in the manufacturing of welding consumables, including welding electrodes, flux-cored wire, and MIG/TIG wires.
The company’s welding consumables are widely used for welding tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, and more. These products serve industries such as railways, roadways, airports, refineries, shipyards, mining, sugar, telecom, thermal power stations, and the PEB sector.
In addition to manufacturing, Royalarc Electrodes is engaged in the trading of ancillary and incidental products like wheels, electro slag, welding flux-cored wire, electro slag strip cladding, saw flux, and TIG/MIG wires.
The company operates a state-of-the-art manufacturing facility spanning 269,198 sq. ft. in Zaroli, Umbergaon, Gujarat, utilizing materials such as copper-coated wire, MS strips, MS wire, SS strips, SS wire, nickel wire, and ferro alloy powder.
Frequently Asked Questions (FAQs) – Royalarc Electrodes IPO
What is the Royalarc Electrodes IPO?
The Royalarc Electrodes IPO is a book-built public issue worth ₹36.00 crores, consisting of a fresh issue of 18.00 lakh shares (₹21.60 crores) and an offer for sale (OFS) of 12.00 lakh shares (₹14.40 crores).
What are the opening and closing dates for the Royalarc Electrodes IPO?*
The IPO opens for subscription on *February 14, 2025, and closes on **February 18, 2025
What is the price band for the IPO?
The price band is set between *₹114 to ₹120 per share
What is the minimum investment required for retail investors
Retail investors must bid for at least *1,200 shares, requiring a minimum investment of *₹1,36,800 at the lower price band and *₹1,44,000 at the upper price band
What is the minimum investment required for HNIs?
HNIs must bid for at least *2 lots (2,400 shares), requiring a minimum investment of *₹2,88,000
How are shares allocated in the IPO?
The 30,00,000 shares are allocated as follows:
- Anchor Investors: 8,40,000 shares (28%)
- Qualified Institutional Buyers (QIBs): 5,60,400 shares (18.68%)
- Non-Institutional Investors (NIIs): 4,45,200 shares (14.84%)
- Retail Individual Investors (RIIs): 10,00,800 shares (33.36%)
Who are the promoters of Royalarc Electrodes Ltd.?
The company is promoted by *Bipin Sanghvi, Tarulata Sanghvi, Hardik Sanghvi, and Swagat Sanghvi
What industries does Royalarc Electrodes cater to?
Royalarc Electrodes provides welding consumables for industries such as *railways, roadways, airports, refineries, shipyards, mining, sugar, telecom, thermal power stations, and PEB sectors
Where is the company’s manufacturing facility located?
The company’s state-of-the-art facility is spread over *269,198 sq. ft. in Zaroli, Umbergaon, Gujarat
