ARC Insulation IPO

ARC Insulation IPO is a book-built issue worth ₹41.19 crore. The IPO comprises a fresh issue of 30 lakh equity shares aggregating to ₹38.06 crore and an offer for sale of 3 lakh equity shares aggregating to ₹3.13 crore. The IPO opens for subscription on August 21, 2025, and closes on August 25, 2025. The allotment is expected to be finalised on August 26, 2025, with tentative listing on NSE SME scheduled for August 29, 2025.

The IPO is priced in a band of ₹119 – ₹125 per share. Retail investors must apply for a minimum of 2 lots comprising 2,000 shares, requiring an investment of ₹2,38,000 at the cutoff price. HNI investors must apply for a minimum of 3 lots (3,000 shares), amounting to ₹3,75,000.

Gretex Corporate Services Ltd. is the book-running lead manager to the issue, and Maashitla Securities Pvt. Ltd. is the registrar. Gretex Share Broking Pvt. Ltd. is the market maker for the IPO.

For detailed information on company financials, business operations, and associated risks, investors are advised to refer to the ARC Insulation IPO RHP.

Industry Outlook

1. India’s composite materials sector, particularly the glass fibre reinforced polymer (GFRP) and fibre reinforced polymer (FRP) segments, is poised for sustained growth, underpinned by rising demand across infrastructure, industrial, and energy sectors. These advanced materials are increasingly favoured for their superior strength-to-weight ratio, corrosion resistance, and long-term durability—qualities that align with the evolving needs of modern construction, transportation, and utility projects.
2. The global GFRP market, valued at USD 47.61 billion in 2023, is projected to reach USD 79.09 billion by 2031, growing at a CAGR of 6.55%. Similarly, the global FRP composites market is expected to expand from USD 98.12 billion in 2024 to USD 189.80 billion by 2032, at a CAGR of 7.6%. Asia-Pacific, led by India and China, dominates this space with a market share exceeding 43%, driven by rapid urbanisation, industrialisation, and government-led infrastructure initiatives.
3. Domestically, India’s manufacturing sector has rebounded strongly, with a 9.9% growth in Q4 FY24, supported by the Production Linked Incentive (PLI) scheme and robust capital goods demand. The construction sector, a key consumer of FRP products, maintained a 9.4% growth rate in FY25, fuelled by public investment in roads, railways, and affordable housing. Meanwhile, the utilities segment—encompassing electricity, gas, and water—grew by 5.3%, reflecting stabilised yet sustained demand for energy infrastructure.
4. The competitive landscape remains fragmented yet vibrant, with both organised and unorganised players vying for market share. Cost efficiency, product innovation, and timely delivery are critical differentiators. Companies like ARC Insulation, with integrated manufacturing capabilities and a diversified product portfolio, are well-positioned to capitalise on this momentum.

ARC Insulation IPO Objectives

The company proposes to utilise the net proceeds from the IPO for the following objectives:

1. Establish a new manufacturing facility dedicated to the production of Glass Fibre Reinforced Polymer (GFRP) and Fibre Reinforced Polymer (FRP) products. This includes capital expenditure for land acquisition, construction, and installation of advanced machinery to enhance automation, reduce manual intervention, and improve production efficiency across its industrial product range.
2. Acquire new office premises to support the company’s administrative and operational expansion. This investment includes repayment of bridge finance availed for the purchase, thereby strengthening the company’s asset base and operational footprint.
3. Repay or prepay certain debt facilities, including bridge finance, to improve the company’s financial leverage and reduce interest burden, thereby enhancing overall financial health and creditworthiness.
4. Augment working capital to support increased operational scale, manage inventory and receivables efficiently, and ensure uninterrupted supply chain and customer fulfilment across domestic and international markets.

About ARC Insulation Limited

ARC Insulation & Insulators Limited was originally incorporated as ARC Insulation & Insulators Private Limited on 10 September 2008 under the Companies Act, 1956. The company was subsequently converted into a public limited entity and renamed ARC Insulation & Insulators Limited on 5 August 2024.

The company is engaged in the manufacturing of Glass Fibre Reinforced Polymer (GFRP) and Fibre Reinforced Polymer (FRP) products, offering corrosion-resistant, thermally stable, and electrically insulating alternatives to traditional steel rebars. Its product portfolio includes GFRP/FRP rebars, tubes, pipelines, cable trays, fencing solutions, and walkways, catering to industrial, energy, marine, and infrastructure sectors.

ARC operates a dedicated manufacturing facility in Ramdevpur Village, South 24 Parganas, West Bengal. The plant is equipped with advanced machinery such as Universal Testing Machines, Electronic Extensometers, and GFRP Rock Bolt Making Machines, ensuring high-quality production standards. The facility also includes a storage unit for raw materials and finished goods, supporting operational continuity.

The company holds ISO 9001:2015 certification for the design, manufacture, and supply of GFRP products. A specialised quality assurance team comprising mechanical, structural, and civil engineers oversees product integrity throughout the production cycle.

How To Check the Allotment Status of the ARC Insulation IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

How To Apply for ARC Insulation IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the ARC Insulation IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of ARC Insulation IPO

Registered Office: Village – Ramdevpur, PO – Bawali, Bishnupur 2, Parganas South, Bishnupur, West Bengal – 743384, India.

Phone: +91 62937 61074
E-mail: info@arcinsulations.com

Know before investing

Strengths

1. Offers a wide range of GFRP/FRP products catering to industrial, energy, marine, and infrastructure sectors.

2. ISO 9001:2015 certified for design, manufacture, and supply of composite products.

3. Robust EBITDA and PAT margins with consistent revenue growth over the last three financial years.

4. Proceeds from the IPO to fund a new manufacturing unit and office space, enhancing operational capacity.

5. Focus on sustainable, corrosion-resistant alternatives to steel, aligning with green infrastructure trends.

6. Presence in international markets such as UAE, Kenya, and Thailand, with scope for further global expansion.

7. Rising demand for FRP products driven by public investment in roads, railways, and utilities.

8. Led by industry veteran Mr. Manish Bajoria with deep domain expertise and strategic vision.

Risks

1. Heavy reliance on imported polymers and fibres exposes the company to price fluctuations and forex risks.

2. A significant portion of revenue comes from a limited number of clients, posing risks if key relationships are lost.

3. Certain regulatory and statutory approvals, including fire safety and trademark registration, are yet to be obtained.

4. Elevated inventory and receivables holding periods may strain liquidity and cash flow.

5. Absence of long-term customer contracts increases uncertainty in revenue continuity.

6. Any disruption or failure in machinery or IT systems could impact production and operations.

7. Historical delays in statutory filings and procedural lapses may attract regulatory scrutiny.

8. Fragmented market with both organised and unorganised players may lead to pricing pressure and margin erosion.