ARC Insulation & Insulators Ltd., formerly known as ARC Insulation & Insulators Private Limited, is a leading manufacturer of glass fiber reinforced polymer (GFRP) composite products, catering to industries such as construction, infrastructure, and chemical processing. Founded in 2003 and incorporated in 2008, the company has built a strong presence with innovative composite solutions.

IPO Details

The ARC Insulation & Insulators IPO is a Book Built Issue worth ₹41.19 crores, consisting of:

• Fresh Issue: 30.45 lakh shares worth ₹38.06 crores

• Offer for Sale (OFS): 2.50 lakh shares worth ₹3.12 crores

The price band is set at ₹119–₹125 per equity share, with a lot size of 1,000 shares. Retail investors must apply for at least 2 lots (2,000 shares), amounting to ₹2,50,000. At the upper price band, the market capitalization will be ₹128.71 crores.

• Issue Opens: 21 August 2025

• Issue Closes: 25 August 2025

• Allotment Date: 26 August 2025 (tentative)

• Listing Date: 29 August 2025 (tentative, NSE SME)

The IPO is managed by Gretex Corporate Services Limited, with Maashitla Securities Private Limited as registrar and Gretex Share Broking Limited as market maker.

Subscription Status

As of the final day (25 August 2025), the IPO was subscribed 6.31 times overall. This strong demand reflects confidence from both retail and institutional investors.

Anchor Investors

ARC Insulation & Insulators raised ₹11.71 crores from Anchor Investors at a price of ₹125 per share, allocating 9,37,000 equity shares in consultation with the lead managers.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for ARC Insulation & Insulators IPO stands at ₹20, indicating an expected listing price of ₹145 compared to the issue price of ₹125. This reflects a potential 16% listing gain for investors.

Objectives of the IPO

The company plans to utilize the net proceeds for:

1. Capital Expenditure – ₹815.67 lakhs for a new manufacturing unit.

2. Purchase of Office Space – ₹305.64 lakhs.

3. Debt Repayment/Pre-payment – ₹118.30 lakhs.

4. Working Capital Requirements – ₹1,634.61 lakhs.

5. General Corporate Purposes.

Financial Performance

ARC Insulation & Insulators has shown steady financial growth:

• Revenue: ₹3,315.32 lakhs (FY25) vs ₹2,883.37 lakhs (FY24) vs ₹2,448.01 lakhs (FY23)

• EBITDA: ₹1,293.98 lakhs (FY25) vs ₹943.13 lakhs (FY24) vs ₹478.69 lakhs (FY23)

• Profit After Tax (PAT): ₹856.58 lakhs (FY25) vs ₹610.40 lakhs (FY24) vs ₹263.81 lakhs (FY23)

Valuation metrics show:

• Pre-issue EPS: ₹12.15

• Post-issue EPS: ₹8.32

• Pre-issue P/E: 10.28x

• Post-issue P/E: 15.03x

• ROCE (FY24): 49.84%

• ROE (FY24): 45.47%

These figures highlight a company with strong profitability, efficient capital utilization, and a scalable business model.

Management

The company is led by:

• Mr. Manish Bajoria – Promoter & Managing Director (16+ years of experience in composites).

• Ms. Neelam Bajoria – Promoter & Executive Director (15+ years of industry leadership experience).

Their expertise and leadership have been key in driving innovation and business growth.

IPO Review

With strong subscription numbers, healthy financials, and a positive GMP trend (+16%), the IPO is expected to deliver listing gains. However, given SME volatility and higher lot investment requirements, analysts recommend the issue for risk-tolerant investors aiming for listing gains rather than conservative long-term holders.

The Upcoming IPOs in this week and coming weeks are Abril Paper Tech, Sneha Organics, Sugs Lloyd, Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering.

The Current active IPO are Shivashrit Foods, Anondita Medicare, Classic Electrodes (India), ARC Insulation & Insulators, Mangal Electrical Industries, .

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