Classic Electrodes IPO is scheduled to open on August 22, 2025, and will close on August 26, 2025. This is a Book-Built Issue, through which the company plans to raise approximately ₹41.51 crores. The IPO consists of a fresh issue of ₹41.51 crores, while the details of the Offer for Sale (OFS) are yet to be announced. Each share has a face value of ₹10.
The IPO price band is set at ₹82 to ₹87 per share, with a retail quota of 35%, QIB quota of 50%, and HNI quota of 15%. The listing will be on NSE on September 1, 2025, and the allotment date is August 28, 2025.
Financial Performance: The company reported a revenue of ₹194.41 crores in 2024, up from ₹151.13 crores in 2023. Its profit rose to ₹12.28 crores in 2024, compared to ₹2.08 crores in 2023, demonstrating strong financial growth. Based on these financials, long-term investors may consider applying for this IPO.
Classic Electrodes IPO Date & Price Band Details
| Category | Details |
|---|---|
| IPO Open Date: | August 22, 2025 |
| IPO Close Date: | August 26, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹82 to ₹87 Per Share |
| Issue Size: | Approx ₹41.51 Crores |
| Fresh Issue: | Approx ₹41.51 Crores |
| Lot Size: | 1,600 Shares |
| Issue Type: | Book-Build Issue |
| IPO Listing: | NSE SME |
| Retail Quota: | Not more than 35% |
| QIB Quota: | Not more than 50% |
| NII Quota: | Not more than 15% |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
| Anchor Investors List: | Click Here |
Classic Electrodes IPO Market Lot
The Classic Electrodes IPO has a minimum market lot of 3,200 shares, which corresponds to an application amount of ₹2,78,400.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 3,200 | ₹2,78,400 |
| Retail Maximum | 2 | 3,200 | ₹2,78,400 |
| S-HNI Minimum | 3 | 4,800 | ₹4,17,600 |
Classic Electrodes IPO Allotment & Listing Dates
The Classic Electrodes IPO will open on August 22, 2025, and close on August 26, 2025. The allotment is scheduled for August 28, 2025, and the IPO will be listed on the NSE on September 1, 2025.
| Type | Date |
|---|---|
| IPO Open Date: | August 22, 2025 |
| IPO Close Date: | August 26, 2025 |
| Basis of Allotment: | August 28, 2025 |
| Refunds: | August 29, 2025 |
| Credit to Demat Account: | August 29, 2025 |
| IPO Listing Date: | September 1, 2025 |
Classic Electrodes IPO: Promoters
The promoters of Classic Electrodes are Mr. Hanuman Prasad Agarwal, Mr. Sushil Kumar Agarwal, Mr. Nitesh Agarwal, Mr. Sunil Kumar Mittal, and M/s Alltime Suppliers Private Limited.
Classic Electrodes IPO Company Financial Report
Classic Electrodes reported a revenue of ₹194.41 crores in 2024, up from ₹151.13 crores in 2023. The profit surged to ₹12.28 crores in 2024, compared to ₹2.08 crores in 2023, reflecting strong financial growth.
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
|---|---|---|---|---|
| 2022 | ₹134.37 | ₹132.39 | ₹1.45 | ₹74.99 |
| 2023 | ₹151.13 | ₹148.34 | ₹2.08 | ₹76.79 |
| 2024 | ₹194.41 | ₹177.95 | ₹12.28 | ₹92.20 |
Classic Electrodes IPO Valuation – FY2024
| KPI | Values |
|---|---|
| ROE: | 36.21% |
| ROCE: | 26.13% |
| EBITDA Margin: | 11.85% |
| PAT Margin: | 6.34% |
| Debt to equity ratio: | 1.35 |
| Earning Per Share (EPS): | ₹9.31 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 36.21% |
| Net Asset Value (NAV): | ₹25.71 |
Classic Electrodes IPO Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| Gee Limited | 4.95 | 26.46 | 15.69 | 86.80 | 369.87 Cr. |
| Ador Welding Limited | 43.60 | 21.11 | 18.32 | 203.41 | 896.90 Cr. |
Objects of the Issue – Classic Electrodes IPO
- Funding capital expenditure to purchase plant and machinery
- Repayment of a portion of certain outstanding borrowings availed by the company
- Funding the working capital requirements of the company
- General corporate purposes
Classic Electrodes Company Overview, Strengths, and Risks
Classic Electrodes (India) Limited is a manufacturer of welding consumables, primarily focused on welding electrodes and MIG wires. Established in 1997, the company has been operating for over two decades and has grown to serve a diverse client base in both domestic and international markets. The company operates from manufacturing facilities located in West Bengal and Haryana, with a combined annual installed capacity of 10,608 metric tonnes (MT) of electrodes and 8,600 MT of MIG wires.
Classic Electrodes offers a wide range of products, including mild steel electrodes, stainless steel electrodes, low hydrogen electrodes, hard-facing electrodes, cast iron electrodes, and various types of MIG wires. Its products are used in a variety of industries, including infrastructure, manufacturing, and construction. The company has a focus on R&D to produce specialized consumables and has obtained several certifications, including ISO 9001, ISO 14001, ISO 45001, CE, and BIS, as well as approvals from major organizations like BHEL, NTPC, and SAIL.
Strengths
- Established Market Presence and Brand Reputation: With over two decades of experience, Classic Electrodes has built a strong reputation in the Indian welding consumables market. The company has a proven track record of serving top-tier industries and has secured multiple certifications and approvals from prestigious public and private institutions.
- Diverse Product Portfolio: The company manufactures a wide array of products, from general-purpose electrodes to specialized welding consumables like low hydrogen and stainless steel electrodes, catering to various industrial needs and reducing its dependence on a single product line.
- Growing Financial Performance: Classic Electrodes has demonstrated significant financial growth. Its revenue and profit after tax have shown a robust upward trend, indicating operational efficiency and increasing market demand for its products.
- Strategic Manufacturing Locations: The company’s two manufacturing units in West Bengal and Haryana provide strategic advantages for distribution and raw material sourcing, helping it to cater to clients across different regions of the country.
- R&D and Quality Focus: The company emphasizes research and development and adheres to stringent quality control measures, which allows it to offer technologically advanced and high-quality products, helping it to compete effectively with both domestic and global manufacturers.
Risks
- Reliance on a Few Customers: A significant portion of the company’s revenue is derived from a limited number of major customers. This high customer concentration makes it vulnerable to any loss of a key client or a reduction in their orders, which could severely impact its financial performance.
- Raw Material Price Volatility: The business is heavily dependent on the availability and cost of raw materials, such as steel and various alloys. The absence of long-term supply contracts makes the company susceptible to price fluctuations, which could squeeze profit margins if the increased costs cannot be passed on to customers.
- High Working Capital Requirements: The business requires substantial working capital due to the time gap between procuring raw materials and receiving payments from customers. This could necessitate additional debt or the use of internal funds, which may affect profitability and cash flows.
- Intense Competition: The welding consumables market is highly competitive, with the presence of both organized and unorganized players. Competition from larger and more established companies could put pressure on pricing and market share.
- Cyclical Nature of Demand: The company’s business is tied to the demand from industries like manufacturing, infrastructure, and construction, which are cyclical. A slowdown in these sectors could lead to reduced demand for its products, adversely affecting its business and financial condition.
- Geographical Concentration of Facilities: While the manufacturing units are strategically located, their concentration in specific regions exposes the company to localized risks, such as natural disasters, labor issues, or any other disruptions in those areas.
Classic Electrodes IPO Review
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Classic Electrodes IPO Registrar
MUFG Intime India Pvt. Ltd.
Phone: +91-22-4918 6270
Email: classicelectrodes.ipo@linkintime.co.in
Website: https://in.mpms.mufg.com/Initial_Offer/public-issues.html
Classic Electrodes IPO Lead Managers aka Merchant Bankers
- GYR Capital Advisors Pvt.Ltd
Classic Electrodes Company Address
Classic Electrodes (India) Ltd.
1 A,
Bonfield Lane
Kolkata, West Bengal, 700001
Phone: +91 8336007981
Email: compliance@classicelectrodes.com
Website: http://www.classicelectrodes.com/
FAQs about Classic Electrodes IPO
The Classic Electrodes IPO is scheduled to open on August 22, 2025, and close on August 26, 2025.
The company has fixed the IPO price band at ₹82 to ₹87 per share.
A retail investor needs to apply for a minimum of 2 lots, which is 3,200 shares, at a total application amount of ₹2,78,400.
The total issue size is approximately ₹41.51 crores, which is a fresh issue of shares.
The company plans to use the proceeds for capital expenditure (purchasing new plant and machinery), repaying some of its outstanding borrowings, funding working capital, and for general corporate purposes.
The shares are scheduled to be listed on the NSE on September 1, 2025.
The promoters are Mr. Hanuman Prasad Agarwal, Mr. Sushil Kumar Agarwal, Mr. Nitesh Agarwal, Mr. Sunil Kumar Mittal, and M/s Alltime Suppliers Private Limited.
The basis of allotment is expected to be finalized on August 28, 2025.
The company has reported strong growth, with revenue increasing from ₹151.13 crores in FY2023 to ₹194.41 crores in FY2024. Profit after tax also saw a significant jump from ₹2.08 crores to ₹12.28 crores in the same period.
Classic Electrodes manufactures and sells a wide range of welding consumables, including welding electrodes and MIG wires, which are used in various industrial applications like infrastructure and manufacturing.
