Classic Electrodes (India) Limited Announces Initial Public Offering (IPO) to Raise Rs 4,150 Lakhs

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Classic Electrodes (India) Limited Announces Initial Public Offering (IPO) to Raise Rs 4,150 Lakhs

The IPO will open for subscription on Friday, August 22, 2025, and close on Tuesday, August 26, 2025. The price band has been fixed at Rs 82 to Rs 87 per equity share.

Classic Electrodes (India) Limited, a leading manufacturer of welding electrodes and MIG wires, today announced the launch of its Initial Public Offering (IPO) to raise Rs 4,150 lakhs through the issuance of 47,71,200 fresh equity shares.

The IPO will open for subscription on Friday, August 22, 2025, and close on Tuesday, August 26, 2025. The price band has been fixed at Rs 82 to Rs 87 per equity share. Post issue, the shares will be listed on the NSE EMERGE platform, with a tentative listing date of Monday, September 01, 2025.

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GYR Capital Advisors Private Limited is acting as the Book Running Lead Manager to the issue, while MUFG Intime India Private Limited will serve as the Registrar. The Market Makers for the issue are Giriraj Stock Broking Private Limited and Winance Financial Services Private Limited.

Utilisation of IPO Proceeds

The funds raised will be utilised for:

  • Capital expenditure towards the purchase of plant and machinery
  • Repayment of certain outstanding borrowings
  • Funding working capital requirements
  • General corporate purposes

IPO Allotment & Investor Reservation

  • Basis of allotment is expected on Thursday, August 28, 2025, and equity shares will be credited to demat accounts on Friday, August 29, 2025.
  • Not more than 50 per cent of the Net Issue will be allocated to Qualified Institutional Buyers (QIBs).
  • At least 35 per cent of the Net Issue will be reserved for individual investors.
  • At least 15 per cent of the Net Issue will be allocated to Non-Institutional Investors (NIIs), with sub-categorisation for small and large HNIs.

Individual investors can apply with a minimum lot size of 3,200 shares (2 lots), requiring an investment of Rs 2,78,400 at the upper price band. For HNIs, the minimum application is 4,800 shares (3 lots), requiring Rs 4,17,600 at the upper price band.

Business & Growth Outlook

Founded in 1997, Classic Electrodes (India) Limited operates two state-of-the-art manufacturing units in West Bengal and Haryana, with combined installed capacity of 10,608 MT of electrodes and 8,600 MT of MIG wires annually. The company caters to diverse, capex-driven industries including infrastructure, power, railways, automotive, shipbuilding, renewables, and defence.

The company is also foraying into flux-cored wire production with an annual capacity of 2,000 MT, becoming the first in Eastern India to do so, and is investing strategically in automation to enhance productivity and scalability. It has already invested over Rs 855 lakhs in CAPEX from internal accruals, and an additional Rs 147.49 lakhs from IPO proceeds has been earmarked for machinery acquisition.

Financial Highlights

  • Revenue for the period ended Feb 28, 2025 stood at Rs 18,760.18 lakhs.
  • Revenue grew by 28.47 per cent from Rs 15,087.13 lakhs in FY 2023 to Rs 19,382.12 lakhs in FY 2024.
  • PAT margin improved significantly from 1.38 per cent in FY 2023 to 6.34 per cent in FY 2024, with 5.10 per cent PAT margin for the 11 months ended Feb 2025.

Accreditations & Approvals

Classic Electrodes (India) Limited holds multiple industry certifications, enabling it to participate in various projects, including:

  • RDSO registration for different grades of electrodes & MIG wires
  • BIS certification from Bureau of Indian Standards
  • Indian Register of Shipping approval for welding consumables used in ship construction
  • ISO certifications

With its strong industry positioning, expanding capacity, and focus on high-growth sectors, Classic Electrodes (India) Limited is well-poised to deliver sustainable growth and value creation post listing.

Classic Electrodes (India) Limited holds the necessary approvals to participate in large-scale infrastructure, rail, and defense projects. These include RDSO registration for MMAW electrodes, BIS certification from the Bureau of Indian Standards, approval of welding consumables for ship construction from the Indian Register of Shipping, registration under the Directorate General of Supplies & Disposal (DGS&D) and ISO certifications.

Disclaimer: The article is for informational purposes only and not investment advice.