Price Band
₹114 - ₹120
Lot Size
1200
Issue Size
₹36 Cr
GMP
N/A
Subscription
1.60x
Analyzing...
IPO Schedule
1
Open
14 Feb 2025
2
Close
18 Feb 2025
3
Allotment
-
4
Listing
24 Feb 2025
About Royal Arc Electrodes
Royal Arc Electrodes is an SME engaged in the manufacturing and supply of welding electrodes. They cater to various industries requiring welding solutions, including fabrication, construction, and manufacturing sectors.
Key Strengths
- High Return on Equity (ROE) of 32.85% indicates efficient utilization of shareholder funds.
- Attractive P/E ratio of 9.36 suggests the IPO is reasonably priced compared to earnings.
- Established presence in the welding electrodes market with a potential for growth in a growing industrial sector.
- Experienced management team with a proven track record in the electrodes industry.
- SME status may offer potential benefits such as lower regulatory burdens and access to specific government schemes.
Risk Factors
- •SME IPOs are inherently riskier due to their smaller size and limited operating history.
- •Fluctuations in raw material prices (e.g., steel, alloys) could impact profitability.
- •Competition from larger, more established players in the welding electrodes market.
Valuation Analysis
Considering the attractive ROE and P/E ratio, the IPO appears reasonably valued, however, investors should carefully consider the risks associated with SME IPOs and the overall market conditions before investing.
IPO Details
ExchangeNSE
SegmentSME
ISININE0EO401019
NSE SymbolROYALARC
Face Value₹10
Lot Size1200
Issue Size₹36 Cr
Key Metrics
ROE32.85%
ROCE37.73%
P/E Ratio9.36
Industry P/E20
EPS12.82
PAT Margin11.95%
Growth & Quality
ProfitableYes ✓
Subscription
Total0.14x
Imbalance Ratio2.0x
Documents
RHP not available
Key Dates
Open Date14 Feb 2025
Close Date18 Feb 2025
Listing24 Feb 2025