ARC Insulation and Insulators Ltd. (Formerly known as ARC Insulation & Insulators Pvt. Ltd.) is one of India’s leading manufacturers of high-performance glass fiber reinforced polymer (GFRP) composite products. The company has been delivering innovative solutions across construction, infrastructure, chemical processing, and various industrial sectors since its inception as a proprietorship concern in 2003, and later incorporated as a company in 2008.

The company has now entered the primary market with its IPO (Initial Public Offering) to raise fresh funds for its expansion plans. The ARC Insulation & Insulators IPO, a book-built issue worth ₹41.19 Crores, has attracted strong investor interest and closed with a massive 17.50 times subscription on the final day, August 25, 2025. This overwhelming response highlights investors’ confidence in the company’s growth prospects.

IPO Details at a Glance

The issue consists of a Fresh Issue of 30.45 lakh equity shares amounting to ₹38.06 Crores and an Offer for Sale (OFS) of 2.50 lakh shares worth ₹3.12 Crores. The IPO subscription window was open from August 21 to August 25, 2025, and now investors eagerly await the allotment.

The price band for the ARC Insulation & Insulators IPO was fixed at ₹119 to ₹125 per share, with a lot size of 1,000 shares. For retail investors, the minimum investment requirement was 2 lots (2,000 shares), which translates to a capital outlay of ₹2,50,000. This made the issue primarily targeted at HNIs (High Net-worth Individuals) and serious retail investors with higher risk appetite.

At the upper band of ₹125 per share, the market capitalisation of the company works out to ₹128.71 Crores.

Lead Manager, Registrar and Market Maker

The IPO was managed by Gretex Corporate Services Ltd., while Maashitla Securities Pvt. Ltd. acted as the registrar. For liquidity support and price stability in the post-listing phase, Gretex Share Broking Ltd. has been appointed as the Market Maker.

Grey Market Premium (GMP) Trend

Ahead of listing, the IPO’s Grey Market Premium (GMP) has been reported at ₹20 per share, suggesting an expected listing price of ₹145 against the IPO price of ₹125. This indicates a 16% premium in the unregulated grey market, reflecting strong demand and positive sentiment around the company’s prospects.

It must be noted that Grey Market Premium (GMP) is unofficial and purely indicative. No real trading happens, and price discovery only occurs after the shares are listed on the exchange. Hence, investors are advised to treat GMP as informational only.

Anchor Investor Participation

ARC Insulation & Insulators successfully raised ₹11.71 Crores from Anchor Investors on August 20, 2025, ahead of the IPO opening. The company allotted 9,37,000 equity shares at ₹125 per share to reputed Anchor Investors in consultation with the book-running lead manager. This strong anchor participation instilled confidence among institutional and retail investors alike.

IPO Subscription Status

As per data released on August 26, 2025 (7:00 PM), the IPO witnessed 17.50 times overall subscription. This robust oversubscription underlines the company’s solid fundamentals, growth potential, and industry positioning. The high subscription figures are expected to reflect positively on listing day.

Allotment and Listing Dates

The IPO allotment date is scheduled for Tuesday, August 26, 2025, when investors can check their allotment status online via the registrar’s website. The tentative listing date on the NSE SME platform is set for Friday, August 29, 2025.

Investors can check the allotment status by:

1. Visiting the registrar’s IPO allotment page.

2. Selecting ARC Insulation & Insulators Limited IPO from the dropdown list.

3. Entering application number, PAN, or DP Client ID.

4. Submitting details to view allotment results.

Objectives of the IPO

The company plans to utilise the net proceeds from the IPO towards multiple growth-oriented objectives, including:

• ₹815.67 Lakhs for capital expenditure on setting up a new manufacturing unit.

• ₹305.64 Lakhs for the purchase of new office space.

• ₹118.30 Lakhs for repayment/prepayment of certain debt facilities.

• ₹1,634.61 Lakhs towards working capital requirements.

• Balance funds to be used for general corporate purposes.

This strategic allocation of IPO funds shows that ARC Insulation is focusing not only on expansion but also on strengthening its balance sheet and improving operational efficiency.

Outlook and Conclusion

With its long-standing presence in the GFRP composites industry, ARC Insulation & Insulators is well-positioned to capture growth in infrastructure, construction, and industrial applications. The IPO’s overwhelming subscription and premium in the grey market reflect strong investor trust in the company’s future.

Investors now await the allotment outcome on August 26 and the listing on August 29. If listing trends mirror the GMP, shareholders could witness a healthy listing gain, but long-term prospects will depend on the company’s execution of its expansion plans.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, .

The Current active IPO are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, Shivashrit Foods, Anondita Medicare, Classic Electrodes (India).

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.