ARC Insulation & Insulators IPO

About ARC Insulation & Insulators 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 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.

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.

Risks of ARC Insulation & Insulators Limited IPO

• 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.

• Operational Challenges: Possible inefficiencies in supply chain management or production processes and dependence on third-party suppliers for critical materials.

• Economic Fluctuations: Vulnerability to economic downturns or fluctuations in construction and manufacturing sectors, and impact on project budgets and investment in insulation solutions.

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.

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