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ARC Insulation & Insulators Ltd

Complete IPO details, including price band, financials, subscription status, and key insights.

Participate in the ARC Insulation & Insulators Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.

IPO Snapshot

Key metrics and details at a glance.

Price Band

₹125

Per Share

Lot Size

1000 Shares

Minimum Investment

₹1,25,000

Issue Size

₹41.19 Cr

Face Value

₹10

Per Share

IPO Type

Book Building - SME

Retail Quota

35%

QIB Quota

50%

NII Quota

15%

IPO Timeline

Important dates for your applying strategy.

IPO Opens21 Aug
IPO Closes25 Aug
Basis of Allotment26 Aug
Refund Initiation28 Aug
Shares Credited28 Aug
Listing Date29 Aug
IPO Process Completed

Subscription Status

Live demand across investor categories.

Track real-time subscription levels:

*Real-time data subject to exchange updates

Qualified Institutional Buyers (QIB)15.12x
Non-Institutional Investors (NII)27.28x
Retail Individual Investors (RII)17.28x
Overall Subscription17.47x

ARC Insulation & Insulators Ltd

Business model, operations, and market positioning.

Promoter Holding (Pre-Issue)

94.48%

Promoter Holding (Post-Issue)

64.11%

Issue Type

Book Building - SME

ISIN

INE0YDV01010

About the Company

The company was incorporated on September 10, 2008, specializing in the manufacturing and supply of Glass Fiber Reinforced Polymers ("GFRP")/ Fiber Reinfored Polymers ("FRP") composite/constituency products. Its offerings include GFRP/FRP Rebars, GFRP/FRP Granting Walkways, GFRP/FRP Pipelines, GFRP/FRP Tubes, GFRP/FRP Fencing for Transformers, GFRP/FRP Cable Trays, and other related products designed for industrial, energy and marine's sectors. In addition to its core business, the company acquired the ongoing business of its promoter, `ARC Insulation & Insulators,' a sole proprietorship, through a business transfer agreement dated June 01, 2009.

Industry Overview

The Glass Fiber Reinforced Polymers (GFRP)/ Fiberglass Reinforced Plastic (FRP) industry in India plays a pivotal role in the nation's economic development, driven by its contributions across multiple industrial sectors. As a leading manufacturer of GFRP/ FRP tubes, products, and ladders, the industry supports key areas including Infrastructure, Power, Cooling Tower, Chemical, Composite, Electrical Substation, Metal & Mining and others. In India, the GFRP / FRP industry is integral to the country's infrastructure growth and industrial expansion. The mining sector benefits from GFRP/ FRP's durability and resistance to harsh conditions, while the chemical and petrochemical industries rely on GFRP/FRP's ability to withstand corrosive environments.

Company History

ARC Insulation & Insulators Limited was originally incorporated on September 10, 2008, as a Private Limited Company in the name of "ARC Insulation & Insulators Private Limited" under the provisions of the Companies Act, 1956 bearing Corporate Identification Number U18109WB2008PTC129263 issued by the Deputy Registrar of Companies, West Bengal. Further, our Company acquired the running business on a going concern basis with the assets and liabilities of ARC Insulation & Insulators, sole proprietorship concern of our promoter Manish Bajoria vide Business Transfer Agreement dated and effective from June 01, 2009. Subsequently, pursuant to a Special Resolution of its Shareholders passed in the Extra-Ordinary General Meeting held on June 11, 2024, the Company was converted from a Private Limited Company to Public Limited Company and consequently, the name of the Company was changed to `ARC Insulation & Insulators Limited' and a Fresh Certificate of Incorporation consequent to Conversion was issued on August 5, 2024 bearing Corporate Identification Number U18109WB2008PLC129263 issued by the Registrar of Companies, Central Processing Centre.

Products & Services

  • The company specializes in the manufacturing and supply of Glass Fiber Reinforced Polymers ("GFRP")/ Fiber Reinfored Polymers ("FRP") composite/constituency products.

Growth Strategy

  • Setup of new integrated manufacturing unit.
  • Diversification of Product Portfolio.
  • Expand Market Reach.
  • Competitive Pricing and Cost Management.

Customer Base

Wholesaler and Retailer

Financial Performance

Revenue, profit after tax and total assets across the last 3 reported financial years.

Standalone figures
Financial Performance Categories

Revenue

+36.4%vs FY23

Amount in ₹ crore

24.0
28.5
32.7
FY23FY24FY25

Profit After Tax (PAT)

+225%vs FY23

Amount in ₹ crore

2.64
6.10
8.57
FY23FY24FY25

Total Assets

+115%vs FY23

Amount in ₹ crore

18.3
22.4
39.3
FY23FY24FY25

Figures in ₹ crore, on a standalone basis, as reported for FY23 to FY25.

Objects of the Issue

How the company plans to utilize IPO proceeds.

Use of Proceeds

The funds raised through this IPO will be used for:

Initial public offer of 32,95,000 equity shares of face value of Rs.10/- each (the "equity shares") of ARC Insulation & Insulators Limited ("the company" or "the offerr") at an offer price of Rs. 125.00 per equity share for cash, aggregating to Rs. 41.19 crores comprising of fresh offer of 30,45,000 equity shares aggregating to Rs. 38.06 crores ("fresh offer") and an offer for sale of 2,50,000 equity shares by Manish Bajoria ("selling shareholder") aggregating to Rs. 3.13 crores ("offer for sale") ("public offer"). The offer includes a reservation of 1,65,000 equity shares of face value of Rs.10/- each, at an offer price of Rs. 125.00 per equity share for cash, aggregating Rs. 2.06 crores will be reserved for subscription by the market maker to the offer (the "Market Maker Reservation Portion"). The public offer less market maker reservation portion i.e. net offer of 31,30,000 equity shares of face value of Rs.10/- each, at an offer price of Rs. 125.00 per equity share for cash, aggregating upto Rs. 39.13 crores is herein after referred to as the "Net Offer". The public offer and net offer will constitute 32.00% and 30.40% respectively of the post offer paid-up equity share capital of the company.

*Subject to approvals and market conditions.

Strengths & Risks

Key competitive advantages and factors to consider before investing.

Strengths and Risk Factors
  • Raw Material Risk.
  • Customer Dependency.
  • Manufacturing Capacity.
  • Regulatory Risks.
  • International Operations Risks.
  • We are exposed to the risk of increase in the price of our raw materials and dependence on suppliers for supply of the raw materials. Further, if we are unable to source quality raw materials required for our business at competitive prices, our business, results of operations and profitability may be adversely affected. The raw material is partially procured through imports which may impact the timeline of production. Also exposing the company to the risk of foreign exchange rate fluctuations.
  • The Company is dependent on few numbers of customers for sales. The loss of any of this large customer may affect our revenues and profitability.
  • Our manufacturing capacity may not correspond precisely to our customers' demands. An inability to effectively utilize our manufacturing capacities may affect our business, results of operations, cash flows and financial condition.
  • Our business is operating under various laws which require us to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and our inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for our business operations could materially and adversely affect our business, prospects, results of operations and financial condition.
  • Our existing international operations and our plans to expand into additional overseas markets are subject to various business, economic, political, regulatory and legal risks.

Frequently Asked Questions

01

What is the minimum investment required to apply for this IPO?

The minimum investment depends on the lot size and the upper price band of the issue. Investors must apply for at least one lot, and the total investment amount is calculated by multiplying the lot size by the upper price band.
02

How is IPO allotment decided?

IPO allotment is determined based on demand and SEBI guidelines. If the IPO is oversubscribed in the retail category, allotment is typically done through a computerized lottery system to ensure fair distribution among eligible applicants.
03

When will I know if shares are allotted to me?

Allotment status is usually finalized a few days after the IPO closes. Once finalized, shares are either credited to your Demat account (if allotted) or the blocked funds are released back to your bank account.
04

Can I modify or cancel my IPO application?

Yes, you can modify or cancel your IPO application anytime before the IPO closing date. Changes can be made through your Alice Blue account, subject to exchange cut-off timings.
05

What happens if the IPO is oversubscribed?

If the IPO receives more applications than the number of shares available, it is considered oversubscribed. In such cases, allotment in the retail category is done on a proportionate or lottery basis, and not all applicants may receive shares.