Royal Arc Electrodes IPO subscribed 1.1 times so far on Day 3. Check GMP, price band and other details

The SME initial public offering (IPO) of Royal Arc Electrodes, which opened for public bidding on February 14, was fully subscribed on Tuesday, the final day of bidding with an overall subscription of 1.05 times as of 12:30 PM.

The company aims to raise Rs 36 crore through the IPO, and the issue is a mix of fresh issue worth Rs 21.60 crore and an offer for sale (OFS) of Rs 14.40 crore.

The retail portion of the issue was subscribed by 1.39 times, while the issue was subscribed by 66% in the non-institutional investors category on the final day of bidding. Meanwhile, the qualified institutional buyers had subscribed by 74% of the allotted portion.

Royal Arc Electrodes IPO’s GMP on Day 3

Ahead of listing, the company's shares were trading with a GMP of Rs 0 in the unlisted market on Tuesday, indicating a nil premium over the upper end of the IPO price band of Rs 120.

Proceeds from IPO

The IPO proceeds will be used for funding towards the expansion of the existing manufacturing facility situated at village Zaroli, working capital requirements and general corporate purposes.

Royal Arc Electrodes IPO price band

The Royalarc Electrodes IPO is priced between Rs 114 and Rs 120 per share, with investors able to bid for a minimum of 1,200 shares per lot, and in multiples thereof.

Allotment and listing date

The allotment for the IPO is set for Wednesday, February 19, while the listing of the shares on the NSE SME platform is scheduled for Friday, February 21.

About Royalarc Electrodes IPO

Incorporated in 1996, the company is engaged in the business of manufacturing of welding electrodes, flux cored wires, MIG/TIG wires. It is capable of manufacturing both standardized as well as customized products.

Further, Royalarc is also engaged in the business of trading of ancillary/incidental products like abrasive wheels, welding flux,

saw wire, saw flux, and special TIG /MIG. We supply our products to domestic customers and export customers.

Manufacturing is emerging as an integral pillar in the country’s economic growth, thanks to the performance of key sectors like automotive, engineering, chemicals, pharmaceuticals, and consumer durables.

Fedex Securities is the book-running lead manager of the Royalarc Electrodes IPO and Kfin Technologies is the registrar.

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