Company Overview
ARC Insulation & Insulators Ltd., founded in 2008 and
based in West Bengal, specializes in manufacturing Glass Fibre Reinforced
Polymer (GFRP) composite products. These corrosion-resistant, durable composite
materials serve as eco-friendly substitutes for steel rebars, tubes, gratings,
and fencing. ARC’s products cater extensively to sectors like infrastructure,
power, chemical, mining, and electrical substations. The company operates with
ISO 9001:2015 certification, ensuring stringent quality standards supported by
advanced testing facilities and a skilled workforce.
IPO Key Details
|
Parameter |
Details |
|
Subscription Start Date |
August 21, 2025 |
|
Subscription End Date |
August 25, 2025 |
|
Basis of Allotment |
August 26, 2025 |
|
Refund Initiation Date |
August 28, 2025 |
|
Share Credit Date |
August 28, 2025 |
|
Listing Date |
August 29, 2025 (NSE SME) |
|
Issue Size |
₹41.19 crore |
|
Fresh Issue Size |
₹38.06 crore (30 lakh shares) |
|
Offer for Sale (OFS) |
₹3.13 crore (3 lakh shares) |
|
Price Band |
₹119 – ₹125 per share |
|
Minimum Lot Size |
2 lots (2,000 shares) |
|
Minimum Investment |
Approx. ₹2,38,000 at cut-off price |
|
Face Value |
₹10 per share |
|
Registrar |
Maashitla Securities Pvt. Ltd. |
|
Lead Manager |
Gretex Corporate Services Ltd. |
|
Market Maker |
Gretex Share Broking Pvt. Ltd. |
Financial Performance Highlights
- Total
revenue increased steadily by 18.65% from ₹23.98 crores in FY23 to ₹28.45
crores in FY24.
- Net
Profit surged by over 40%, reaching ₹8.57 crores in FY25, highlighting
operational growth.
- Earnings
per Share (EPS) stood at ₹11.81 with a strong Return on Net Worth (RoNW)
of 45.47%.
- Healthy
EBITDA margin of 38.22%, reflecting operational efficiency and
profitability.
Grey Market Premium (GMP) Trends
The GMP is a key indicator of listing-day gains based on
unofficial market demand:
|
Date |
IPO Upper Price Band (₹) |
GMP (₹) |
Estimated Listing Price (₹) |
Estimated Listing Gain (%) |
|
22-Aug-2025 |
125 |
19 |
144 |
15.2% |
|
21-Aug-2025 |
125 |
17 |
142 |
13.6% |
|
20-Aug-2025 |
125 |
15 |
140 |
12.0% |
As of August 22, 2025, the GMP stood at ₹19, suggesting the
stock could list around ₹144 – a gain of approximately 15.2% from the issue's
upper band. However, investors should remember GMP values are speculative and
can change quickly.
Use of IPO Proceeds
The company plans to deploy the IPO proceeds towards:
- Setting
up a new manufacturing unit for FRP/GFRP composite products.
- Purchasing
office space in Kolkata.
- Repayment
or prepayment of outstanding debt.
- Funding
working capital requirements.
- General
corporate purposes.
Business Strengths & Risks
Strengths:
- Niche
expertise in GFRP composites with increasing demand in diverse sectors
such as infrastructure, power, and chemicals.
- Consistent
revenue and profit growth track record.
- ISO
9001:2015 certification and focus on quality assurance.
- Experienced
management team capable of strategic expansion.
Risks:
- Dependency
on raw material prices and supply chain reliability.
- Competition
from alternative materials and established players.
- SME
market risks including liquidity issues and pricing volatility.
How to Apply
The IPO is accessible to retail investors through the ASBA
facility, net banking, or UPI linked to their demat accounts. Retail investors
can apply for a minimum of 2 lots (2,000 shares), approximately costing ₹2.38
lakh at the upper price band. The IPO allotment results will be declared on
August 26, and shares credited by August 28. The official listing will occur on
the NSE SME platform on August 29, 2025.
Disclaimer
This information aims to provide educational insight and
does not constitute investment advice. Consult a qualified financial advisor
prior to making investment choices.
