Classic Electrodes (India) is a leading manufacturer of welding electrodes and provider of engineering solutions to customers in domestic and international markets. With 27 years of experience, the company offers a wide range of products including General Purpose Electrodes, Low Alloy Electrodes, Low Hydrogen Electrodes, Stainless Steel Electrodes, Hard Facing Electrodes, Cast Iron Electrodes, Non-Ferrous Electrodes, Low Heat Input Electrodes, Cutting and Gauging Electrodes, and Mig Wires.

The Classic Electrodes (India) IPO 2025 is a Book Built Issue with a total size of ₹ 41.51 Crores, consisting entirely of a Fresh Issue of 47.71 Lakh shares. The IPO subscription period opens on 22nd August 2025 and closes on 26th August 2025, with allotment expected on 28th August 2025. The shares are planned to be listed on NSE SME around 1st September 2025.

The IPO share price band is ₹ 82 to ₹ 87 per equity share. At the upper end of the band, the company’s market capitalization will be ₹ 156.30 Crores. The lot size is 1,600 shares, with a minimum investment of 2 lots or ₹ 2,78,400.

GYR Capital Advisors Private Limited is the book running lead manager, while MUFG Intime India Private Limited is the registrar. Winance Financial Services Private Limited and Giriraj Stock Broking Private Limited are the designated market makers.

The Grey Market Premium (GMP) is currently ₹ 18, reflecting a potential listing gain of 20.68%. Investors should note that GMP depends on unorganized demand and supply and is for informational purposes only.

Anchor investors have subscribed for 13,45,600 shares at ₹ 87 per share, raising ₹ 11.70 Crores, allocated from the Qualified Institutional Buyers (QIBs) portion.

The IPO proceeds will be used strategically for growth and debt management:

• ₹ 147.49 Lakh for funding capital expenditure, including purchase of plant and machinery.

• ₹ 1,000.00 Lakh for repayment of a portion of outstanding borrowings.

• ₹ 1,660.00 Lakh for working capital requirements.

• Remaining funds for general corporate purposes.

The company is led by Hanuman Prasad Agarwal and Sushil Kumar Agarwal, each with over 26 years of experience, Nitesh Agarwal managing the Kolkata factory, Sunil Kumar Mittal with 26 years of professional experience, Ayush Agarwal overseeing Haryana operations, and Naresh Kumar Agarwal, all contributing to strong operational and management capabilities.

Classic Electrodes’ financial performance reflects steady growth:

• Revenue from operations: ₹ 18,789.56 Lakh (FY25), ₹ 19,440.73 Lakh (FY24), ₹ 15,112.69 Lakh (FY23), ₹ 13,436.80 Lakh (FY22)

• EBITDA: ₹ 1,962.81 Lakh (FY25), ₹ 2,321.76 Lakh (FY24), ₹ 872.73 Lakh (FY23), ₹ 633.49 Lakh (FY22)

• Profit after Tax (PAT): ₹ 957.31 Lakh (FY25), ₹ 1,229.79 Lakh (FY24), ₹ 208.48 Lakh (FY23), ₹ 149.31 Lakh (FY22)

Key IPO metrics include pre-issue EPS ₹ 7.92, post-issue EPS ₹ 5.81, pre-issue P/E ratio 10.98x, post-issue P/E ratio 14.97x (against industry P/E 35x), ROCE 25.78%, ROE 44.11%, and RoNW 36.14%, indicating a fairly priced IPO.

Given the Grey Market Premium of ₹ 18, investors seeking listing gains may consider applying to the Classic Electrodes (India) IPO 2025.

The IPO allotment will be available online from 28th August 2025 via the registrar’s portal using application number, PAN, or DP Client ID. Monitoring subscription trends, anchor investor allocation, and GMP will help investors make informed decisions aligned with their investment strategies.

Overall, the Classic Electrodes (India) IPO represents an opportunity to invest in a financially sound, long-standing company in the welding electrodes sector with strong domestic and international presence, and potential for listing gains.

The Upcoming IPOs in this week and coming weeks are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Anondita Medicare, Classic Electrodes (India), Vikran Engineering, Shivashrit Foods.

The Current active IPO are ARC Insulation & Insulators, Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Shreeji Shipping Global, Patel Retail.

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