The Classic Electrodes (India) IPO made a strong debut on the NSE SME platform on September 1, 2025, listing at ₹100 per share, which represents a 14.94% premium over the IPO issue price of ₹87.

The public issue, worth ₹41.51 crore, consisted entirely of a fresh issue of 47.71 lakh shares. The IPO witnessed massive investor participation, being oversubscribed 179.97 times overall, with both retail and institutional categories showing robust demand.

The IPO opened on August 22, 2025, and closed on August 26, 2025. The allotment was finalized on August 28, 2025, and shares listed on September 1, 2025.

At the IPO upper price band of ₹87 per share, the company’s market capitalization stood at ₹156.30 crore. The lot size was 1,600 shares, with a minimum investment requirement of ₹2,78,400 (for 2 lots).

GYR Capital Advisors Private Limited acted as the Book Running Lead Manager, MUFG Intime India Pvt. Ltd. was the Registrar, while Winance Financial Services Pvt. Ltd. and Giriraj Stock Broking Pvt. Ltd. were the market makers.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Classic Electrodes (India) IPO was reported at ₹18 per share ahead of listing, indicating investor enthusiasm. However, experts cautioned that GMP is unregulated and demand-supply driven, hence should not be treated as a reliable indicator of listing performance.

Anchor Investors

Ahead of the IPO, Classic Electrodes raised ₹11.70 crore from anchor investors, allotting 13,45,600 equity shares at ₹87 per share. This showed strong institutional confidence in the company’s fundamentals.

About Classic Electrodes (India) Ltd.

Established in 1997, Classic Electrodes (India) is engaged in manufacturing welding electrodes and MIG wires, along with providing engineering solutions to domestic and international customers. With 27 years of industry experience, the company offers a wide product portfolio that includes:

• General Purpose Electrodes

• Low Alloy & Low Hydrogen Electrodes

• Stainless Steel Electrodes

• Hard Facing & Cast Iron Electrodes

• Non-Ferrous & Low Heat Input Electrodes

• Cutting and Gauging Electrodes

• MIG Wires

The company operates from two manufacturing units — Dhulagarh (West Bengal) and Jhajjar (Haryana) — while a third unit at Bahadurgarh was closed in FY 2023–24.

Certifications & Quality Standards

Classic Electrodes holds certifications such as:

• ISO 9001:2008 (Moody International)

• BIS License

• DGS&D Registration (Govt. of India)

It maintains in-house chemical & physical testing labs and a robust quality assurance system.

Financial Performance

The company reported strong growth in FY 2024, driven by high-margin product expansion:

• Revenue up 28.5% YoY: from ₹15,087.13 lakh (FY23) to ₹19,382.12 lakh (FY24).

• Stainless Steel MIG Wires revenue doubled (+106.1%).

• MIG Wires (excluding SS) revenue grew 29.9%.

• Electrodes segment posted steady growth of 4.3%.

• Trading revenue rose 42.9% due to profitable bulk trading of wire rods.

This growth reflects demand for specialized consumables, better product mix optimization, and higher sales conversions.

Industry Outlook

The Indian welding consumables market, valued at US$ 1.17 billion in 2023, is expected to reach US$ 1.57 billion by 2028 at a CAGR of 6.1%.

Key growth drivers include:

• Infrastructure development (roads, bridges, airports, ports).

• Expansion in heavy engineering, shipbuilding, railways, automotive, oil & gas, and power sectors.

• Government initiatives like National Infrastructure Pipeline, Make in India, and Atmanirbhar Bharat.

Business Strengths

1. 27+ years of expertise in welding consumables.

2. Diversified product portfolio across electrodes and MIG wires.

3. Strong anchor investor participation, boosting investor confidence.

4. Certified manufacturing facilities with global standards.

5. Strategic plant locations ensuring cost efficiency.

6. Robust distribution network and pan-India presence.

Risks & Concerns

• Heavy dependence on domestic markets (esp. West Bengal).

• Geographic concentration of facilities (Dhulagarh & Jhajjar).

• Exposure to raw material volatility (wire rods, rutile).

• Operational risks from machinery breakdowns, labor issues, or policy changes.

IPO Objectives

The IPO proceeds will be used for:

• ₹147.49 lakh – funding plant & machinery.

• ₹1,000 lakh – repayment of borrowings.

• ₹1,660 lakh – working capital needs.

• General corporate purposes.

Conclusion

The Classic Electrodes (India) IPO made a solid market debut at ₹100, giving investors a 15% listing gain. With strong financial growth, an expanding product portfolio, and rising demand in the welding consumables industry, the company is well-positioned for long-term growth. However, investors must consider risks related to regional dependence and raw material supply chain challenges.

The Upcoming IPOs in this week and coming weeks are Vashishtha Luxury Fashion, Karbonsteel Engineering, Sharvaya Metals, Austere Systems, Optivalue Tek Consulting, Vigor Plast India, Goel Construction Company.

The Current active IPO are Amanta Healthcare, Rachit Prints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, Oval Projects.

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