CLASSIC ELECTRODES (INDIA) IPO
Snapshot of the IPO Offering
IPO Period | 22nd August 2025 – 26th August 2025 |
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Listing on | 01 September 2025 |
Price Band | ₹82 – ₹87 per equity share |
Lot Size & Minimum Investment | 1600 shares, amounting to ₹139,200 at the upper price band |
Total Issue Size | ₹41.51 crores |
Important Dates for Investors
- Opening Date: 22 August 2025
- Closing Date: 26 August 2025
- UPI Payment Deadline: 26 August 2025 (5 PM)
- Allotment Announcement: 28 August 2025
- Refund Processing: 28 August 2025
- Demat Credit: 29 August 2025
- Stock Market Listing: 01 September 2025
- Mandate Validity End: 10 September 2025
- Anchor Investor Lock-in Release (50%): 26 September 2025
- Anchor Investor Lock-in Release (Remaining): 25 November 2025
*Dates may be revised as per official updates.
Deep Dive into Classic Electrodes (India)
Founded in 1997, Classic Electrodes (India) has established itself as a prominent manufacturer of high-quality welding consumables and comprehensive engineering solutions. Operating in the specialized industrial sector, the company is renowned for its diverse product portfolio, which includes general-purpose welding electrodes, stainless steel electrodes, cast iron electrodes, and MIG wires. These products are critical components across a wide spectrum of industries.
The company caters to both domestic and international markets, serving a robust clientele in sectors such as construction, general manufacturing, and heavy engineering. With over 27 years of operational experience, Classic Electrodes (India) boasts an ISO 9001:2008 certification, underscoring its commitment to quality and operational excellence. It operates two state-of-the-art manufacturing units located in West Bengal and Haryana, ensuring efficient production capabilities. Furthermore, the company holds licensing from the Bureau of Indian Standards and is registered with the Directorate General of Supplies & Disposals (DGS&D), validating its adherence to stringent national standards and its ability to supply to government entities. Classic Electrodes (India)’s extensive product range, combined with its well-established distribution network, positions it as a reliable provider of welding solutions for a myriad of industrial applications.
Details of Capital Mobilization
The Classic Electrodes (India) IPO is structured as a 100% fresh issue, aiming to infuse new capital directly into the company for its strategic growth initiatives. This complete reliance on fresh issue signifies the company’s intent to utilize the proceeds for internal expansion and debt reduction, rather than offering existing shareholders an exit opportunity.
Total Funds Raised | ₹41.51 crores |
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Fresh Issue Component | ₹41.51 crores |
Offer for Sale Component | ₹0 |
The entire issue size of ₹41.51 crores comprises a fresh issue of equity shares. This indicates that the company will directly receive all the net proceeds from the IPO, which will be instrumental in funding its stated objectives and strengthening its balance sheet. The absence of an Offer for Sale (OFS) component suggests that existing shareholders are not divesting their stakes, reflecting confidence in the company’s future prospects.
Strategic Utilization of IPO Proceeds
Classic Electrodes (India) has outlined clear objectives for the capital it aims to raise through this IPO, focusing on strengthening its operational capabilities and financial health. The planned allocation ensures that the funds will be directed towards key areas that are crucial for the company’s sustained growth and expansion.
Objective | Amount (INR Crores) | Allocation % |
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Funding capital expenditure of our company to purchase Plant and Machinery | 10.00 | 24% |
Repayment of a portion of certain outstanding borrowing availed by the company | 10.00 | 24% |
Working capital requirements | 16.60 | 40% |
General corporate purposes | 4.91 | 12% |
A significant portion of the funds, 24%, is earmarked for capital expenditure, specifically for the acquisition of new plant and machinery. This investment is crucial for enhancing the company’s manufacturing capacity, upgrading technology, and improving production efficiency, thereby supporting future demand and technological advancements. Another 24% of the proceeds will be utilized for the partial repayment of existing outstanding borrowings. This move is expected to reduce the company’s interest burden, improve its debt-to-equity ratio, and strengthen its financial stability, providing more flexibility for future growth initiatives. The largest allocation, 40%, is dedicated to meeting the working capital requirements. Adequate working capital is vital for Classic Electrodes (India) to manage its day-to-day operations efficiently, including inventory management, raw material procurement, and timely payments to suppliers and employees. The remaining 12% is allocated for general corporate purposes, which provides the management with flexibility to address various strategic needs, including but not limited to, business development activities, marketing initiatives, and unforeseen contingencies.
Distinctive Strengths of the Company
Classic Electrodes (India) possesses several competitive advantages that underpin its market position and potential for future growth:
- Established Brand Recognition: The company has built a strong reputation for quality and reliability, making it a preferred choice among industrial users and distributors in the welding consumables market. This trust is a significant barrier to entry for new competitors.
- Comprehensive Product Portfolio: Classic Electrodes offers a wide array of products, including mild steel, stainless steel, cast iron electrodes, deep penetration electrodes, and MIG wires. This extensive range caters to diverse industrial needs, reducing reliance on a single product segment.
- Modern Production Facility: Its state-of-the-art manufacturing facility in West Bengal incorporates automated processes, ensuring high production efficiency, consistent product quality, and the ability to scale operations effectively.
- Robust Quality Management Systems: Adherence to ISO certifications and well-defined quality management systems ensures consistent product standards and superior performance, which is critical in the precision-driven welding industry.
- Efficient Supply Chain and Dealer Network: An established supply chain network coupled with strong dealer relationships facilitates timely product delivery across various geographies, enhancing customer satisfaction and market reach.
- In-house Research and Development Capabilities: The company’s commitment to in-house R&D enables continuous product innovation and customization, allowing it to adapt to evolving market demands and offer specialized solutions to its clients.
Potential Considerations for Investors
While Classic Electrodes (India) presents a compelling investment opportunity, potential investors should also be aware of certain risk factors:
- Heavy Domestic Market Dependence: A significant portion of the company’s revenue is derived from the domestic market. This concentration could make the company vulnerable to economic downturns or adverse changes in demand within India.
- Customer Concentration: The reliance on a limited number of major customers without long-term contracts poses a retention risk. Loss of key clients or a reduction in their orders could significantly impact revenue and profitability.
- Labour-Intensive Operations: As a manufacturing entity, the company’s operations are labour-intensive. This carries risks associated with potential unionization, increasing labour costs, and challenges in maintaining skilled workforce stability.
- Bank Borrowings and Covenant Compliance: The company has availed bank borrowings, which come with specific covenants. Non-compliance with these covenants could lead to increased financing costs or restrictions on financial flexibility.
- Third-Party Logistics Dependency: Reliance on third-party logistics providers for transportation and delivery introduces supply chain disruption risks. Issues with these providers could affect product delivery schedules and customer satisfaction.
Latest Subscription Data
Subscription statistics based on the latest available information for Classic Electrodes (India) IPO indicate strong investor interest across various categories:
Investor Category | Shares Reserved (Lakhs) | Shares Applied (Lakhs) | Subscription (Times) |
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Qualified Institutional Buyers (QIB) | 8.99 | 763.21 | 84.88x |
Non-Institutional Investors (NII) | 6.75 | 2408.75 | 356.75x |
Retail Individual Investors (RII) | 15.72 | 2491.96 | 158.44x |
Total | 31.47 | 5663.93 | 179.97x |
The IPO has witnessed overwhelming interest, particularly from Non-Institutional Investors (NII) and Retail Individual Investors (RII), indicating strong market demand for the company’s shares. Qualified Institutional Buyers (QIBs) also showed substantial participation, contributing to a robust overall subscription figure. The strong subscription numbers reflect positive investor sentiment towards Classic Electrodes (India) and its future prospects.
*GMP figures are unofficial and may vary; exchange data is more reliable.
How to Apply
Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes. Ensure you have a demat account and complete the application process within the specified IPO period.