Royalarc Electrodes IPO - Day 3 Subscription at 0.85 Times

Royalarc Electrodes' initial public offering (IPO) has shown measured progress through its three-day subscription period. The ₹36 crore IPO, comprising a fresh issue of ₹21.60 crores and an offer for sale of ₹14.40 crores, has witnessed steady improvement in demand, with subscription rates advancing from 0.14 times on day one, improving to 0.68 times on day two, and reaching 0.85 times by 11:25 AM on the final day.

Royalarc Electrodes IPO has already secured institutional backing through its anchor book of ₹10.08 crores, and this foundation has been complemented by growing retail investor interest. The retail segment has emerged as the strongest performer, crossing the full subscription mark at 1.24 times, while the QIB portion maintains 0.74 times subscription, reflecting measured institutional participation in this welding consumables manufacturer.
 

The overall response has gathered steady momentum, with total applications reaching 1,068. The NII segment shows cautious participation at 0.09 times, while the cumulative bid amount has reached ₹20.35 crores, demonstrating strategic evaluation by investors of this specialized manufacturing company's market position and growth prospects in the welding consumables sector.

Subscription Status of Royalarc Electrodes IPO:

Here are the subscription details for Royalarc Electrodes IPO as of Day 3 (February 18, 2025, 11:25 AM):

Note:
 

• "Shares Offered" and "Total Amount" are calculated based on the upper price of the issue price range.
• The portions of anchor investors and market maker are not included in the total shares offered.

Royalarc Electrodes IPO - Day 3 Subscription

Key Highlights:

• Overall subscription reaching 0.85 times demonstrating steady progress
• Retail investors leading with robust 1.24 times subscription
• QIB portion maintaining consistent level at 0.74 times
• NII segment showing measured approach at 0.09 times
• Total applications reaching 1,068 showing focused participation
• Cumulative bid amount reaching ₹20.35 crores
• Strong anchor backing providing stability with ₹10.08 crores
• Retail momentum driving overall subscription
• Final day witnessing improved retail interest
• Manufacturing sector expertise attracting attention
• Subscription reflecting strategic evaluation
• Market response indicating measured assessment
• Specialized product portfolio drawing interest
• Industrial focus resonating with retail investors

Royalarc Electrodes IPO - Day 2 Subscription at 0.68 Times

Key Highlights:

• Overall subscription improving to 0.68 times showing consistent growth
• Retail investors approaching full subscription at 0.90 times
• QIB portion reaching 0.74 times showing institutional interest
• NII segment at 0.13 times showing careful evaluation
• Day two maintaining steady momentum
• Market response indicating growing confidence
• Manufacturing expertise driving participation
• Strong retail segment momentum continuing
• Second day building on opening response
• Measured evaluation by institutional investors
• Industry experience drawing attention
• Local manufacturing presence supporting interest
• Technical capabilities reflected in subscription
• Day two establishing subscription patter

Royalarc Electrodes IPO - Day 1 Subscription at 0.14 Times

Key Highlights:

• Overall subscription opening at 0.14 times showing measured start
• Retail investors beginning at 0.26 times
• NII segment showing initial interest at 0.04 times
• QIB portion awaiting participation
• Opening day demonstrating careful approach
• Initial momentum indicating strategic evaluation
• Manufacturing sector experience driving interest
• First day setting subscription baseline
• Market response suggesting thorough assessment
• Early applications showing focused interest
• Day one establishing steady pace
• Technical expertise attracting attention
• Opening momentum building gradually
• Initial response showing systematic approach

About Royalarc Electrodes Limited

Royalarc Electrodes Limited, established in 1996, has evolved into a specialized manufacturer of welding consumables, operating from a state-of-the-art manufacturing facility spanning 269,198 square feet in Zaroli, Umbergaon, Gujarat. The company's comprehensive product portfolio includes welding electrodes, flux cored wire, and MIG/TIG wires, serving diverse industries such as railways, roadways, airports, refineries, shipyards, mining, and power stations.
Their business model demonstrates strong technical capabilities through the manufacture of both standardized and customized products, with exports reaching over 20 countries. The company's commitment to quality is evidenced by certifications from prestigious bodies including the American Bureau of Shipping (ABS), Indian Boilers Regulation (IBR), and Bureau of Indian Standard (BIS), with quality control further strengthened through NABL-accredited laboratory inspections.

Their financial performance shows consistent growth with revenue reaching ₹100.99 crores in FY2024, with profit after tax of ₹11.93 crores. For the six months ended September 30, 2024, the company reported revenue of ₹46.06 crores with a PAT of ₹3.18 crores, demonstrating steady operational efficiency in the specialized welding consumables sector.

Their competitive strengths include:

• Extensive geographic presence across India and international markets
• Strong long-term customer relationships across industries
• Consistent financial performance and growth
• Experienced promoters and management team
• Advanced manufacturing capabilities
• Quality certifications from leading bodies
• Comprehensive product portfolio
• Technical expertise in welding consumables
• Export presence in over 20 countries
• State-of-the-art manufacturing facility

Highlights of the Royalarc Electrodes IPO:

• IPO type: Book Built Issue SME IPO
• IPO size: ₹36.00 crores
• Fresh Issue: ₹21.60 crores
• Offer for Sale: ₹14.40 crores
• Face value: ₹10 per share
• Price band: ₹114 to ₹120 per share
• Lot size: 1,200 shares
• Minimum investment for retail investors: ₹1,44,000
• Minimum investment for HNI: ₹2,88,000 (2 lots)
• Market maker reservation: 1,53,600 shares
• Listing at: NSE SME
• IPO opens: February 14, 2025
• IPO closes: February 18, 2025
• Allotment date: February 19, 2025
• Refund initiation: February 20, 2025
• Credit of shares: February 20, 2025
• Listing date: February 21, 2025
• Lead Manager: Fedex Securities Pvt Ltd
• Registrar: Kfin Technologies Limited
• Market Maker: Shreni Shares Limited