ARC Insulation IPO opens on August 21, 2025, with a price band of ₹119–₹125.
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Introduction
When I first looked at ARC Insulation & Insulators Ltd. IPO (ARC Insulation IPO) Detail, what caught my attention was its focus on Glass Fiber Reinforced Polymer (GFRP) products. These are widely used in industries that rely heavily on durability and corrosion resistance. With the IPO opening on August 21, 2025, investors are buzzing about whether this is a solid opportunity or another pricey bet.
The IPO aims to raise ₹41.19 crore, combining both a fresh issue and an offer for sale. The company will list on NSE SME.
IPO Details
Particulars
Details
IPO Date
August 21, 2025 – August 25, 2025
Listing Date
August 29, 2025 (Tentative)
Issue Size
32,95,000 shares (₹41.19 Cr)
Fresh Issue
30,00,000 shares (₹38.06 Cr)
Offer for Sale
2,50,000 shares (₹3.13 Cr)
Price Band
₹119 – ₹125 per share
Lot Size
2,000 shares (Retail Min ₹2.50 Lakh)
Listing Exchange
NSE SME
Lead Manager
Gretex Corporate Services Ltd.
Registrar
Maashitla Securities Pvt. Ltd.
Market Maker
Gretex Share Broking Pvt. Ltd.
Reservation & Lot Size
Investors need to be mindful of the minimum investment requirements. Unlike mainboard IPOs, SME IPOs often come with larger lot sizes.
Investor Category
Minimum Shares
Investment (Approx)
Retail (Min)
2,000
₹2,50,000
S-HNI (Min)
3,000
₹3,75,000
B-HNI (Min)
9,000
₹11,25,000
This shows it’s not a small-ticket IPO. You’ll need decent capital if you’re planning to apply.
Company Background
ARC Insulation & Insulators Ltd., founded in 2008, manufactures GFRP/FRP products such as:
GFRP Rebars
Tubes & Gratings
Transformer Fencing
Cable Trays
Spray Pipes & Trench Covers
These products are widely used in infrastructure, power, cooling towers, mining, chemicals, and marine construction. Their manufacturing facility in West Bengal is ISO 2015 certified and equipped with advanced testing machines.
Competitive Strengths
Wide range of durable and corrosion-resistant GFRP products.
Presence in both domestic and international markets.
Strong quality assurance systems with Universal Testing Machine.
Enhanced durability compared to traditional steel products.
What I found interesting is their niche in chemical and marine industries, where corrosion resistance is critical.
Financial Performance
ARC has reported consistent growth in recent years, with a big spike in profits.
Financial Year
Revenue (₹ Cr)
EBITDA (₹ Cr)
PAT (₹ Cr)
Net Worth (₹ Cr)
FY 2023
24.48
4.29
2.64
6.35
FY 2024
28.83
9.05
6.10
12.45
FY 2025
33.15
12.50
8.57
25.22
Key Ratios (FY 2025):
ROE: 45.47%
ROCE: 49.84%
PAT Margin: 26.18%
Debt/Equity: 0.24
The company’s profit jumped nearly 40% in FY25, which seems attractive but also raises questions about sustainability.
Objects of the Issue
The IPO proceeds will be used for:
Factory Shed for New Manufacturing Unit – ₹8.16 Cr
New Office Space Purchase – ₹3.06 Cr
Debt Repayment/Prepayment – ₹1.18 Cr
Working Capital – ₹10 Cr
General Corporate Purposes
This indicates a strong focus on capacity expansion.
IPO Timeline
Event
Date (2025)
IPO Open Date
August 21
IPO Close Date
August 25
Allotment
August 26
Refund Initiation
August 28
Credit to Demat
August 28
Listing Date
August 29
Expert Review
According to analyst Dilip Davda, ARC Insulation operates in a fragmented, highly competitive segment. While the financial growth looks promising, the sudden spike in profits from FY24 onward could raise eyebrows. Still, for cash-rich investors, this IPO may offer decent medium-term gains.
Conclusion
In my view, the ARC Insulation & Insulators Ltd. IPO (ARC Insulation IPO) Detail presents a mixed bag. On one side, you’ve got strong revenue growth, niche products, and expansion plans. On the other, there’s the high entry cost for retail investors and concerns about sustainability of earnings.
If you’re a retail investor, think twice about the high investment requirement. But if you’re an HNI looking for SME IPO exposure, this could be worth a look.
FAQs
What is the price band of ARC Insulation IPO?
The price band is set between ₹119 – ₹125 per share.
What is the minimum investment required for retail investors?
Retail investors must invest a minimum of ₹2.50 lakh (2,000 shares).
When will ARC Insulation IPO list on NSE SME?
The tentative listing date is August 29, 2025.
What will ARC Insulation use IPO proceeds for?
The funds will be used for factory expansion, new office purchase, debt repayment, and working capital.
Is ARC Insulation IPO a good buy?
Experts suggest cautious optimism. It could deliver medium-term returns, but valuation and sustainability of profits should be considered.
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