Classic Electrodes (India) Limited has launched its Initial Public Offering (IPO), which has received an overwhelming response from investors. The IPO was subscribed 54.25 times by the final day of the subscription period, showing the strong demand in both retail and institutional categories. The allotment of shares is scheduled to take place on August 28, 2025, and the tentative listing date on the NSE SME platform is set for September 1, 2025.

Company Overview

Classic Electrodes (India) has been in the business for 27 years, manufacturing a wide range of welding electrodes and providing engineering solutions across domestic and international markets. Its products include 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. This diversified product basket makes the company an established name in the welding solutions industry.

The company’s strength lies in its ability to cater to different industrial sectors by maintaining quality standards and providing customized engineering solutions. With the growing demand for welding consumables in industries like construction, infrastructure, automobiles, and manufacturing, Classic Electrodes is well-positioned to capitalize on market opportunities.

IPO Details

The Classic Electrodes IPO is a Book Built Issue of ₹41.51 Crores, consisting entirely of a Fresh Issue of 47.71 lakh equity shares. The IPO opened for subscription on August 22, 2025, and closed on August 26, 2025.

• Price Band: ₹82 – ₹87 per share

• Lot Size: 1,600 shares per lot

• Minimum Investment: 2 lots (3,200 shares) = ₹2,78,400

• Post IPO Market Cap: ₹156.30 Crores at upper band (₹87)

The Book Running Lead Manager for the issue is GYR Capital Advisors Pvt. Ltd., while the Registrar is MUFG Intime India Pvt. Ltd. (formerly Link Intime India Pvt. Ltd.). The Market Makers are Winance Financial Services Pvt. Ltd. and Giriraj Stock Broking Pvt. Ltd.

Anchor Investor Participation

Ahead of the IPO opening, Classic Electrodes raised ₹11.70 Crores from Anchor Investors by allocating 13,45,600 equity shares at the upper price band of ₹87 per share. This allocation was done in consultation with the Book Running Lead Manager. The anchor book subscription reflected strong institutional interest, which often builds confidence among retail investors.

Subscription Status

As of 12:30 PM on August 26, 2025, the IPO received bids that pushed the subscription figure to 54.25 times, making it one of the most oversubscribed SME IPOs in recent times. This high subscription reflects investor confidence in the company’s business model, financial strength, and growth potential.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Classic Electrodes IPO is reported at ₹18 per share. This indicates an expected listing price of around ₹105 per share, compared to the IPO price of ₹87. However, experts caution that GMP is unofficial and unregulated, as it depends solely on demand-supply dynamics in the unorganized market. It should be used only as an indicator, not as a guarantee of performance.

Day-wise GMP Trend

On August 19, 2025, GMP stood at ₹18, suggesting a premium of 20.68% over the upper price band. The trend has remained steady, pointing to consistent investor enthusiasm ahead of listing.

IPO Allotment & How to Check Status

The IPO allotment date is August 28, 2025. Investors can check their allotment status by following these steps:

1. Visit the IPO registrar’s website.

2. Select “Classic Electrodes (India) Limited IPO” from the list of IPOs.

3. Enter your Application Number, PAN, or DP/Client ID.

4. Submit the details to view allotment status.

This process will show whether shares have been allotted or if the application has been unsuccessful.

Objectives of the IPO

The company plans to use the net proceeds from the IPO for the following purposes:

1. ₹147.49 Lakh for funding capital expenditure to purchase plant and machinery.

2. ₹1,000.00 Lakh for repayment of certain outstanding borrowings.

3. ₹1,660.00 Lakh for meeting working capital requirements.

4. Balance for general corporate purposes.

These allocations reflect the company’s strategy of reducing debt, strengthening its balance sheet, expanding capacity, and supporting growth in operations.

Financial Performance

Though detailed financials are not included here, the company’s growth trajectory over the past years, combined with its established presence in domestic and export markets, has made it an attractive proposition for investors.

Conclusion

The Classic Electrodes IPO has created significant excitement in the SME IPO space with its 54.25 times subscription, reflecting strong investor confidence. The company’s solid fundamentals, long operational history, and diversified product offerings make it a noteworthy player in the manufacturing sector.

With the allotment due on August 28, 2025, and listing expected on September 1, 2025, investors are keenly watching whether the strong subscription translates into equally strong listing gains.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, .

The Current active IPO are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, Shivashrit Foods, Anondita Medicare, Classic Electrodes (India).

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.