New Delhi, August 29, 2025 – SME IPO newcomer ARC Insulation & Insulators made a strong first impression on the markets with a lively debut, only to see its stock pulled back sharply within hours.
How It Debuted
| Detail | Value |
|---|---|
| Issue Price | ₹125 per share |
| Listing Price | ₹145 on NSE SME – ~16% premium |
| Grey Market Premium | Peaked around 48% pre-listing |
| IPO Size | ₹41.19 crore (₹38.06 cr fresh issue + ₹3.13 cr offer for sale) |
| Subscription Levels | Overall: ~18.7×; QIB: ~15.1×; NII: ~26.8×; Retail: ~17.3× |
ARC Insulation hit the NSE SME trading floor on August 29 at ₹145-a quick 16% gain from the IPO price. However, enthusiasm gave way to caution as the stock slipped, eventually hitting the lower circuit limit at ₹137.75, reflecting a trimmed gain of 10.2% for IPO subscribers. (Source: The Economic Times, mint, The Economic Times)
Investor Support Was Overwhelming
The IPO received a remarkable response:
- Booked ~18.7 times overall
- QIBs subscribed ~15.1×, NIIs ~26.8×, Retail Investors ~17.3×
- Anchor investors committed ₹11.71 crore ahead of the public issue (Source: Moneycontrol, IPO Premium, The Economic Times)
Use of Funds: Building Blocks of Expansion
ARC plans to use the fresh capital strategically:
- ₹8.16 crore for new manufacturing shed
- ₹3.06 crore to acquire office space
- ₹1.18 crore to cut down debt
- ₹10 crore to fuel working capital
- Remaining funds for general corporate needs (Source: Business Standard, Zerodha)
Business Snapshot: GFRP Makers on the Rise
Founded in 2008, ARC specializes in robust, corrosion-resistant glass fiber reinforced polymer (GFRP) products like rebars, gratings, tubes, and fencing-valued as steel alternatives in infrastructure, power, chemical, and mining industries. Its facilities are based in West Bengal. (Source: Moneycontrol, Axis Direct)
Financial Performance at a Glance
| Fiscal Year | Revenue (₹ cr) | PAT (₹ cr) | EBITDA Margin (%) | PAT Margin (%) |
|---|---|---|---|---|
| FY23 | 24.0 | 2.64 | – | – |
| FY24 | ~28.5 | 6.10 | – | – |
| FY25 | ~33.2 | 8.57 | 38.2 | 26.2 |
Profitability metrics like an EBITDA margin of 38% and PAT margin of 26% indicate a lean operating model with strong bottom-line performance. (Source: finnpick.com)
Final Verdict: Is It Worth a Close Look?
- Positive Indicators: High-quality IPO debut, robust financials, and clear expansion goals make ARC Insulation an interesting long-term opportunity.
- Points of Caution: Fast listing gains were followed by profit booking; also, grey market enthusiasm may overshoot expectations. Execution of its expansion plan will be key.
Investor Takeaway: Conservative investors may benefit from waiting for short-term price stabilization, while those willing to ride the growth potential of a niche GFRP market may consider buying on weakness.
