Royalarc Electrodes IPO: Latest GMP, Subscription Status, Price Band, Offer Size And More
The grey market premium on Royalarc Electrodes IPO stood at Rs 0 as of 4:30 p.m. on Feb. 14.
Royalarc Electrodes Ltd. launched its initial public offering to raise Rs 36 crore from the primary market on Feb. 14. The company is engaged in the business of manufacturing welding consumable products. Those looking to bid for shares in this NSE SME offer must check out these key details before submitting their bids.
Royalarc Electrodes IPO: Key Details
Royalarc Electrodes IPO comprises a fresh issue of 18 lakh shares worth Rs 21.60 crore and an offer for sale of 12 lakh shares worth Rs 14.4 crore. The total offer size is valued at Rs 14.4 crore at the upper price band of Rs 114 to Rs 120.
The company has reserved 50% of the net offer size for qualified institutional buyers, 35% for retail investors and the remaining 15% for non-institutional investors.
Retail investors may bid in Royalarc Electrodes IPO with a minimum lot size of 1,200 shares, resulting in an investment of Rs 1.44 lakh.
The subscription window for Royalarc Electrodes IPO will remain open between Feb. 14 and Feb. 18. Allotment of shares in the offer is proposed to be finalised on Feb. 19. Credit of shares into the demat account of successful bidders will be done on Feb. 20. Refunds for the non-allottees will also be initiated on the same day.
Shares of Royalarc Electrodes Ltd. are proposed to be listed on the NSE SME platform Emerge on Feb. 21.
The company has appointed Fedex Securities Pvt. as the book-running lead manager of the Royalarc Electrodes IPO. Kfin Technologies Ltd. is the registrar for the IPO whereas Shreni Shares Ltd. is its market maker.
Royalarc Electrodes IPO Subscription Status: Day 1
The Royalarc Electrodes IPO has been subscribed 0.13 times as of 4:30 p.m. on Friday, as per market tracking site Chittorgarh:
Qualified Institutional Buyers: nil
Non-Institutional Buyers: 0.03 times
Retail Investors: 0.24 times
Royalarc Electrodes IPO GMP Today
The grey market premium on Royalarc Electrodes IPO stood at Rs 0 as of 2:58 p.m. on Feb. 14, according to InvestorGain. The current GMP trends indicate a possible flat listing for the offer.
Note: GMP is based on speculation and must not be considered official data.
Royalarc Electrodes Ltd. Business and Financials
Royalarc Electrodes Ltd. manufactures welding consumables such as MIG/TIG wires, flux-cored wires, and welding electrodes. It serves industries such as railways, construction, and shipbuilding.
Use Of Proceeds
The company has proposed to use the net proceeds from the fresh issue to expand its manufacturing facility in Gujarat and meet its working capital requirements. A section of the proceeds will be used for general corporate purposes.
Financials
Royalarc Electrodes Ltd. generated a revenue of Rs 46.06 crore in the first half of FY25 with a net profit of Rs 3.18 crore. In FY24, the company's revenues stood at Rs 100.99 crore, marking over 3% year-on-year jump from Rs 98.03 crore in FY23. Net profit rose to Rs 11.93 crore from Rs 9.57 crore.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
