Royal Arc Electrodes came to market through an SME IPO that opened on 14 February 2025 and closed on 18 February 2025, and the shares listed on 24 February 2025 on NSE SME. The price band was ₹114 to ₹120 per share and one lot was 1200 shares, so the minimum application was ₹1,44,000. The issue size was ₹36 crore. It combined a fresh issue of new shares with an offer for sale by existing shareholders.
Kfin Technologies Limited was the registrar to the issue, and Fedex Securities Pvt Ltd was the lead manager.
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Incorporated in 1996, Royalarc Electrodes Limited is involved in the business of manufacturing of welding consumables such as, welding electrodes, flux cored wire, MIG/TIG wires. The company used welding consumables for welding tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, and more, across industries such as railways, roadways, airports, refineries, shipyards, mining, sugar, telecom, thermal power stations, and PEB sectors.
It trades ancillary and incidental products, such as wheels, electro slag, welding flux-cored wire, electro slag strip cladding, saw flux, and TIG/MIG wires. It produces products in copper-coated wire, MS strips, MS wire, SS strips, SS wire, nickel wire, and ferro alloy powder at its high-tech unit sprawling over 269,198 sq. ft. in Zaroli, Umbergaon, Gujarat. The company manufactures standardized and customized products, supplying domestically and exporting to 20+ countries.
Products are certified by American Bureau of Shipping (ABS), Indian Boilers Regulation (IBR), Bureau of Indian Standard (BIS), with inspections outsourced to NABL-accredited laboratories. As of December 31, 2024, the company has a total workforce of 144 permanent employees.
As described in the offer document.
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Bipin Sanghvi, Tarulata Sanghvi, Hardik Sanghvi, Swagat Sanghvi. Promoter holding 99.99% before the issue and 72.96% after.
Work out the listing gain for this SME IPO
If the retail portion is not fully subscribed, every valid application is allotted in full. If it is oversubscribed, SEBI's rules require that as many applicants as possible receive at least one lot, so the shares are allotted by a computerised lottery across all valid applications, one lot each, until the retail portion is exhausted. Applying for more lots does not improve your chance in a lottery; it only increases what you receive if the issue is under-subscribed.
The basis of allotment document, published by the registrar on the allotment date, states the ratio: for example, one applicant in seven received one lot.
Allotment status is published by the registrar on its website, searchable by PAN, application number or demat account, and also on the exchange's website. Allotted shares are credited to the demat account the day before listing, and blocked money for unsuccessful applications is released the same day. The Rupix app can check allotment status by PAN once the registrar publishes it.
Shares list within three working days of the issue closing. On listing day the exchanges run a special pre-open session from nine o'clock, during which orders are collected and an opening price is discovered from them; trading in the share begins after that, usually around ten. The opening price is the listing price that appears on this page once the issue has listed, and the listing gain or loss is the difference between it and the issue price.
For a mainboard issue, the share then trades in the normal way with the exchange's price band for a new listing. For an SME issue, shares trade in lots rather than one at a time, and the market can be thin, so selling on listing day is not always possible at the opening price. Capital gains on shares sold within a year of allotment are short-term and taxed at the short-term rate.
Royal Arc Electrodes IPO was a ₹36 crore book-built issue, comprising a fresh issue of ₹21.6 crore and an offer for sale of ₹14.4 crore. It was priced at ₹114–₹120 per share with a lot size of 1,200 shares (₹1,44,000). The IPO was open from February 14 to February 18, 2025. Shares listed on NSE SME on February 24, 2025 at ₹120, in line with the issue price of ₹120. Kfin Technologies Limited is the registrar.
Fedex Securities Pvt Ltd is the book running lead manager.
The price band of Royal Arc Electrodes IPO is ₹114 to ₹120 per share.
The lot size of Royal Arc Electrodes IPO is 1200 shares.
The minimum investment for Royal Arc Electrodes IPO is approximately ₹1,44,000 based on the upper price band.
The allotment date of Royal Arc Electrodes IPO is Feb 19, 2025.
You can check Royal Arc Electrodes IPO allotment status on the registrar or stock exchange websites using your PAN or application number after allotment. You can also check the Royal Arc Electrodes IPO allotment status on Rupix for quick and easy access.
₹114 to ₹120 per share, against a face value of ₹10. Most applicants bid at the cut-off price, the top of the band, so that the application was valid whatever price the issuer finally fixed.
One lot was 1200 shares, and every application had to be a whole number of lots. At the top of the band that made the minimum application ₹1,44,000. After listing, SME shares also trade in lots rather than one share at a time.
₹1,44,000, for one lot of 1200 shares at the top of the price band. The amount was blocked in the applicant's bank account through ASBA or a UPI mandate while the issue was open, and released on the allotment date to applicants who were not allotted shares.
It opened on 14 February 2025 and closed on 18 February 2025.
The basis of allotment was published on 19 February 2025 by Kfin Technologies Limited, and allotted shares were credited to demat accounts before listing.
The shares listed on 24 February 2025 on NSE SME.
The issue size was ₹36 crore. The fresh issue was 18,00,000 shares (aggregating up to ₹21.6 crore). The offer for sale was 12,00,000 shares (aggregating up to ₹14.4 crore).