IPO Details
Issue Date
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Price Range
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IPO Size
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Schedule of ARC Insulation & Insulators Ltd
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About ARC Insulation & Insulators Limited IPO
ARC Insulation & Insulators Limited IPO is an IPO of up to 25,39,800* equity shares. It consists of an offer for sale of up to 2,15,000* equity shares and a fresh issue of up to 23,24,800* equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.
Objective of ARC Insulation & Insulators Limited IPO
- Capital expenditure towards the setup of a factory shed for a new manufacturing unit.
- Capital expenditure towards the purchase of plant & machinery for the new manufacturing unit.
- Purchase of new office space.
- Repayment/pre-payment of certain debt facilities.
- Working capital requirements.
- General corporate purposes.
ARC Insulation & Insulators Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Up to 2,15,000* Equity Shares |
Fresh Issue | Up to 23,24,800* Equity Shares |
EPS (₹) For the year ended March 31, 2024 | 8.91 |
ARC Insulation & Insulators Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIB Shares Offered | Not more than 50% |
Retail Shares Offered | Not less than 35% |
NII (HNI) Shares Offered | Not less than 15% |
Industry Outlook
The manufacturing sector of India has the potential to reach US$ 1,00,000 crores by 2025. The implementation of the Goods and Services Tax (GST) will make India a common market with a GDP of US$ 3,40,000 crores along with a population of 148 crores people, which will be a big draw for investors. The global Fiber Reinforced Polymer (FRP) composites market size was valued at USD 9,121 crores in 2023 and is projected to grow from USD 9,812 crores in 2024 to USD 18,980 crores by 2032 at a CAGR of 7.6% during 2024-2032. Asia Pacific dominated the fibre-reinforced polymer composites (FRP) market with a market share of 43.59% in 2023. Moreover, the fibre reinforced polymer composites market in the U.S. is projected to grow significantly, reaching an estimated value of USD 4,367 crores by 2032, driven by the increasing adoption of FRP composites in various end-use industries such as automotive, construction, and aerospace.
Company Information
ARC Insulation & Insulators Limited, incorporated on September 10, 2008, specialises in the manufacturing and supply of Glass Fiber Reinforced Polymers (“GFRP”)/Fiber Reinforced Polymers Products (“FRP”) composite/constituency products which provides corrosion-resistant, tensile strength and insulating Glass Fiber Reinforced Polymer (GFRP) solutions which can be used as a substitute for steel bars/rebars. They produce dent-resistant, low thermal expansion, corrosion-resistant, and insulating GFRP. They sell GFRP rebars, GFRP granting walkways, GFRP pipelines, GFRP tubes, GFRP fencing for transformers, GFRP cable trays, and other related products. Under their brand name “ARC”, they supply their products for application in diverse industries including infrastructure, power, cooling tower, chemicals, composite, and electrical substations.
ARC Insulation & Insulators Ltd Strengths
Product Quality
Good quality, durable, and advanced insulation materials with thermal and better performance, keeping in mind the compliance with international quality standards (e.g., ISO).
Cost Advantages
Lower labour and production costs compared to global competitors. They achieve economies of scale through large-scale production.
Market Presence
Established presence in the domestic and international market with a distribution network.
Risks of ARC Insulation & Insulators Limited IPO
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Fluctuation in raw material prices: The company is exposed to an increase in the price of raw materials and dependence on suppliers for the supply of raw materials. Further, if they are unable to source quality raw materials required for their business at competitive prices, their business, results of operations, and profitability may be adversely affected.
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Operational Challenges: Possible inefficiencies in supply chain management or production processes and dependence on third-party suppliers for critical materials.
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Economic Fluctuations: Vulnerability to economic downturns or fluctuations in construction and manufacturing sectors, and impact on project budgets and investment in insulation solutions.
All Financial Information about ARC Insulation & Insulators Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | ARC Insulation and Insulators Limited | Aeron Composite Limited |
|---|---|---|
Revenue from Operations (in crores) | 28.455 | 199.729 |
P/E | - | 2.56 |
EPS (Basic) | 8.91 | 64.53 |
Return on Net Worth (%) | 49.02 | 33.20 |
NAV per share | 30.76 | NA |
Anchor Investor Information
The Anchor Investor Bid/ Issue Period shall be one Working Day prior to the Bid/Issue Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers:
Gretex Corporate Services Limited
Registrar for the IPO is Maashitla Securities Private Limited
Business Model
The company earns its revenue by offering the following:
- Manufacturing and supply of Glass Fibre Reinforced Polymers (“GFRP”)/Fibre Reinforced Polymers Products (“FRP”) composite/constituency products which provide corrosion-resistant, tensile strength, and insulating Glass Fibre Reinforced Polymer (GFRP) solutions which can be used as a substitute for steel bars/rebars.
Company Growth Trajectory
The company’s total income increased by ₹4.35 crores, from ₹24.48 crores for the financial year ended March 31, 2023, to ₹28.83 crores for the financial year ended March 31, 2024. Their revenue from operations increased by ₹4.47 crores, from ₹23.98 crores for the financial year ended March 31, 2023, to ₹28.45 crores for the financial year ended March 31, 2024, representing a growth of 18.65% on account of the addition of new customers, repetitive orders from existing customers, and new geographical expansion within the domestic markets. Domestic sales of finished goods increased to ₹27.82 crores in F.Y. 2023–24 as compared to ₹22.78 crores in F.Y. 2022–23 on account of business expansion and additional orders executed.
Company Market Position
ARC Insulation & Insulators Limited markets and sells their products both domestically and internationally. Within the domestic market, their products are distributed directly to end customers as well as through traders and stockists. Since commencing their export operations in 2010, they have successfully reached 11 countries.
ARC Insulation & Insulators Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹ crores) | 11.542 | 23.982 | 28.455 |
Profit Before Tax (₹ crores) | 0.287 | 3.527 | 8.158 |
Net profit / (loss) (₹ crores) | 0.238 | 2.638 | 6.104 |
EBITDA (₹ crores) | 1.137 | 4.289 | 9.052 |
EPS (₹) | 0.51 | 3.85 | 8.91 |
Comparison with peers
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax (₹ crores) | 0.287 | 3.527 | 8.158 |
Net Cash from Operating Activities (₹ crores) | 2.439 | 0.931 | 9.130 |
Net Cash from Investing Activities (₹crores) | (1.255) | (1.688) | (5.363) |
Net Cash from Financing Activities (₹ crores) | (1.178) | 0.730 | (3.443) |
Cash and Cash Equivalents (₹crores) | 0.073 | 0.046 | 0.371 |
How To Check Allotment Status of ARC Insulation & Insulators Limited IPO?
You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar Maashitla Securities Private Limited. To check the status on the NSE website:
- Visit the NSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is ARC Insulation & Insulators Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Maashitla Securities Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select ARC Insulation & Insulators Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
ARC Insulation & Insulators Ltd IPO FAQs
What is the ARC Insulation & Insulators Limited IPO?
The ARC Insulation & Insulators Limited IPO has an issue size of up to 25,39,800 equity shares. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for ARC Insulation & Insulators Limited IPO?
Maashitla Securities Private Limited is the registrar for this IPO.
Where can I read more about ARC Insulation & Insulators Limited business?
You may read more about ARC Insulation & Insulators Limited and its IPO from the company’s draft red herring prospectus (DRHP) here.
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