Royalarc Electrodes IPO Day 2: Latest GMP, subscription status, listing date & other details about SME IPO
Royalarc Electrodes' IPO, opened on February 14, has seen a sluggish response with a subscription rate of 0.31 times. The company aims to raise ₹36 crore, focusing on manufacturing expansion and working capital. The IPO closes on February 18 and lists on NSE SME on February 21.
The initial public offering (IPO) of Royalarc Electrodes, which opened for bidding on February 14, has received a lukewarm response from investors on its second day. As of 01:30 p.m. today, the IPO had garnered bids for 619,200 shares against the available 2,006,400 shares, translating to a subscription rate of 0.31 times.
The retail investor segment was subscribed 0.57 times, while the non-institutional investor (NII) category saw a subscription of 0.11 times. Meanwhile, the qualified institutional buyer (QIB) segment had yet to commence bidding.
The company intends to utilize the proceeds from the issue for several strategic objectives, including the expansion of its manufacturing facility at Village Zaroli, Umbergaon, Valsad, and Gujarat, funding working capital requirements, and meeting general corporate purposes.
Royalarc Electrodes issue details
1. Royalarc Electrodes IPO date: The issue opened for subscription on Friday, February 14, and concluded on Tuesday, February 18.
2. Royalarc Electrodes IPO Price: The price band of the public issue has been fixed at ₹114 to ₹120 per equity share.
3. Royalarc Electrodes IPO Size: The company aims to raise ₹36 crore through the IPO, is a combination of fresh issue of 18.00 lakh shares aggregating to ₹21.60 crores and offer for sale of 12.00 lakh shares aggregating to ₹14.40 crores.
4. Royalarc Electrodes IPO Lot Size: The IPO lot size has been fixed at 1200 shares, requiring a minimum investment of ₹144,000 for retail investors.
5. Royalarc Electrodes IPO reservation: The issue reserved 17% to qualified institutional buyers, 15% to non-institutional buyers, 33.36% to retail investors, and 28% to anchor investors.
6. Royalarc Electrodes IPO allotment date: The IPO allotment date is set for Wednesday, February 19. Investors who receive an allotment will see the shares in their demat accounts by Thursday, February 20, while those who do not will have their refunds processed on the same day.
7. Royalarc Electrodes IPO listing: The SME IPO is proposed to list on the NSE SME on Friday, February 21.
8. Royalarc Electrodes IPO GMP: According to market sources, the GMP of the Royalarc Electrodes IPO on Monday was ₹0, suggesting that the stock may list as the same as the IPO price.
9. Royalarc Electrodes book-running lead manager and registrar: Fedex Securities Pvt Ltd is the book-running lead manager of the Royalarc Electrodes IPO, while Kfin Technologies Limited is the registrar for the issue.The market maker for the Royalarc Electrodes IPO is Shreni Shares Limited.
10. Royalarc Electrodes business overview: The company is engaged in the business of manufacturing welding consumables such as welding electrodes, flux-cored wire, and MIG/TIG wires. It is used for 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.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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