The ARC Insulation IPO Details , launched by ARC Insulation & Insulators Limited, is a compelling SME IPO opening in August 2025, targeting to raise ₹41.19 crore. As a key player in India’s Glass Fiber Reinforced Polymer (GFRP) and Fiber Reinforced Polymer (FRP) industry, this IPO is drawing attention for its innovative products and growth potential. This unique, detailed, and reader-focused post provides a clear breakdown of the ARC Insulation IPO, including dates, price band, lot size, Grey Market Premium (GMP), financials, and actionable insights in a structured 900+ word format.
Table of Contents
ARC Insulation: Company Snapshot
Founded in 2008, ARC Insulation & Insulators Limited, based in South 24 Parganas, West Bengal, manufactures high-performance GFRP and FRP products. These lightweight, corrosion-resistant alternatives to steel rebars are used in infrastructure, power, chemicals, mining, and marine sectors. Operating from a modern facility, the company is ISO 9001:2015 certified and employs advanced testing equipment to ensure quality.
Key Company Highlights
- Products: GFRP rebars, grating walkways, pipelines, transformer fencing, cable trays, and fiberglass pipes.
- Industries: Infrastructure, power, chemicals, cooling towers, and mining.
- Workforce: 54 employees as of March 31, 2025.
- Market Reach: Supplies to domestic and international clients in chemicals, oil & gas, and hospitality.
ARC Insulation IPO Details
| IPO Detail | Information |
|---|---|
| IPO Open Date | August 21, 2025 |
| IPO Close Date | August 25, 2025 |
| Anchor Bidding | August 20, 2025 |
| Allotment Date | August 26, 2025 |
| Refund Initiation | August 27, 2025 |
| Demat Credit | August 28, 2025 |
| Listing Date | August 29, 2025 (tentative, NSE SME) |
| Issue Size | ₹41.19 crore (32,95,000 equity shares) |
| Face Value | ₹10 per share |
| Price Band | ₹119–₹125 per share |
| Lot Size | 1,000 shares (₹125,000 at upper price band) |
| Issue Type | Fresh Issue (₹38.06 crore) + Offer for Sale (₹3.13 crore) |
| Lead Manager | Gretex Corporate Services Ltd. |
| Registrar | Maashitla Securities Pvt. Ltd. |
Investor Allocation
- Qualified Institutional Buyers (QIB): 47.44% (15,63,000 shares).
- Non-Institutional Investors (NII): 14.29% (4,71,000 shares).
- Retail Investors: 33.27% (10,96,000 shares).
- Market Makers: 5% (1,65,000 shares).
ARC Insulation IPO Objectives
The IPO proceeds will fund:
- New Manufacturing Unit: ₹8.16 crore to expand GFRP/FRP production capacity.
- Office Space Acquisition: ₹3.06 crore for new premises to support operations.
- Debt Reduction: ₹1.18 crore to prepay certain borrowings.
- Working Capital: ₹10 crore to meet operational demands.
- General Corporate Needs: To support other business initiatives.
ARC Insulation IPO Grey Market Premium (GMP)
| Date | GMP (₹) | Estimated Listing Price (₹) | Expected Gain (%) |
|---|---|---|---|
| August 19, 2025 | ₹0 | ₹125 | 0% |
| August 20, 2025 | ₹21 | ₹146 | 16.8% |
| August 21, 2025 | ₹19–₹22 | ₹144–₹147 | 15.2–17.6% |
- GMP Insight: The ARC Insulation IPO GMP of ₹19–₹22 as of August 21, 2025, suggests a listing price of ₹144–₹147, with potential gains of 15.2–17.6%. GMP reflects unofficial market sentiment and can fluctuate, so investors should evaluate it alongside fundamentals.
ARC Insulation Financial Performance
| Metric | FY24 | FY25 | Growth |
|---|---|---|---|
| Revenue | ₹28.83 crore | ₹33.15 crore | 15% |
| Profit After Tax (PAT) | ₹6.10 crore | ₹8.57 crore | 40% |
| EBITDA | ₹9.05 crore | ₹12.50 crore | 38% |
| P/E Ratio | 10.58x (at ₹125) | – | – |
| EPS | ₹11.81 | – | – |
- Financial Snapshot: ARC Insulation reported a 15% revenue growth and 40% PAT increase in FY25, showcasing operational strength. Its P/E ratio of 10.58x is competitive compared to peer Aeron Composite Ltd. (P/E 12.22).
Strengths of ARC Insulation
- Innovative Offerings: GFRP products are eco-friendly, durable, and corrosion-resistant, ideal for modern infrastructure.
- Quality Standards: ISO 9001:2015 certification and advanced testing ensure product reliability.
- Diverse Markets: Serves multiple industries, reducing sector-specific risks.
- Robust Financials: 40% PAT growth and a low P/E ratio signal strong value.
- Expansion Plans: IPO funds will boost production and operational efficiency.
Risks of ARC Insulation IPO
- Raw Material Costs: Dependence on domestic and imported materials, vulnerable to price volatility.
- Market Competition: Faces challenges from established and unorganized GFRP/FRP players.
- Economic Sensitivity: Infrastructure and construction demand fluctuations could impact revenue.
- Operational Risks: Potential disruptions in supply chain or production processes.
How to Apply for ARC Insulation IPO
Investors can apply through:
- ASBA: Use online banking or bank IPO portals (e.g., ICICI Bank, Axis Bank).
- UPI: Apply via brokers like Zerodha, Upstox, or Groww using UPI.
- Offline: Submit physical IPO forms through your broker.
To check allotment status, visit Maashitla Securities (https://maashitla.com/allotment-status/public-issues) and input your PAN, application number, or DP Client ID.
ARC Insulation IPO Analyst Insights
| Analyst | Recommendation | Key Points |
|---|---|---|
| InvestorZone | Subscribe | Attractive valuation, strong financials, and growing GFRP demand. |
| Univest | Positive | High GMP (15–17%) and solid subscription; good for short-term gains. |
- Subscription Update: As of August 21, 2025, at 12:56 PM, the ARC Insulation IPO was 1.28x oversubscribed, with applications for 30,10,000 shares against 23,58,000 shares offered, indicating strong investor interest.
Industry Outlook for ARC Insulation
The GFRP and FRP market in India is expanding due to:
- Growing demand for sustainable, corrosion-resistant materials in construction.
- Government push for infrastructure development and green solutions.
- Increasing applications in power, chemicals, and marine industries.
- Rising investments in industrial and renewable energy projects.
ARC Insulation is strategically positioned to capitalize on these trends with its innovative products and established market presence.
Should You Invest in ARC Insulation IPO?
The ARC Insulation IPO is a promising opportunity due to:
- Strong Financial Growth: 15% revenue and 40% PAT growth in FY25.
- Attractive GMP: 15.2–17.6% expected listing gains.
- Market Potential: Rising demand for GFRP in infrastructure and industrial sectors.
- Competitive Valuation: P/E of 10.58x compared to peers.
Key Risks:
- Raw material price fluctuations.
- Intense competition in the GFRP/FRP market.
- Economic slowdown impacting infrastructure spending.
Recommendation: The ARC Insulation IPO is ideal for investors seeking short-term listing gains and long-term exposure to the growing GFRP sector. The strong subscription and competitive P/E ratio reflect positive market sentiment. However, investors should monitor GMP trends and consult a SEBI-registered financial advisor before applying.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please conduct thorough research and consult a certified financial advisor before making investment decisions.
