Classic Electrodes IPO: Price, GMP, Analysis, And Details

Classic Electrodes IPO- Company Analysis

Classic Electrodes IPO under the SME IPO category is a bookbuilding issue of Rs. 41.51 Cr by Classic Electrodes (India) Ltd, which was incorporated in 1997. It is a well-known Indian manufacturer that specializes in welding consumables such as electrodes and MIG wires.

The business offers engineering solutions to both domestic and foreign clients in addition to producing welding electrodes.

Among their product offerings are:

• Mild steel electrodes.

• Stainless steel electrodes.

• Cast iron electrodes.

• Deep penetration electrodes.

• MIG wires.
  
  

Classic Electrodes IPO Details

The Classic Electrodes IPO date is on 22 August 2025, and its initial public offering will end on 26 Aug with IPO allotment on Aug 28, and refund initiation on Aug 28, 2025.

The Rs. 41.51 crore new SME IPO comprises a fresh issue of 0.48 crore Shares.

The Classic Electrodes IPO listing date (expected) might be on Monday, Sep 01, 2025, and listing at the NSE and SME. 

The Classic Electrodes IPO price band is Rs. 82 to Rs. 87.

IPO Timetable (Tentative)

Events	Date
IPO Opening Date	Aug 22, 2025
IPO Closing Date	Aug 26, 2025
IPO Allotment Date	Aug 28, 2025
Refund Initiation	Aug 28, 2025
IPO Listing Date	Sep 01, 2025

 

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Company Financials

(Amount in Cr)

Period	28 Feb 2025	31 Mar 2024	31 Mar 2023
Total Assets	116.34	88.53	76.79
Total Revenue	187.90	194.41	151.13
PAT	9.57	12.30	2.08
EBITDA	19.24	23.04	8.54
Net Worth	43.60	34.03	21.73
Reserves & Surplus	30.41	28.75	16.46
Borrowings	53.50	46.73	44.11

 

 

Cash Flows

(Amount in lac)

Net Cash Flow in Multiple Activities	31 Mar 2025	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	124.22	285.95	168.25
Net Cash Flow Investing Activities	(330.50)	(97.35)	(196.27)
Net Cash Flow Financing Activities	216.61	(196.74)	31.26

 (Source: RHP)

Revenue Bifurcation

Geographical Revenue Bifurcation

 

Product-wise Revenue Bifurcation

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing the company's capital expenditure to buy plant and machinery. ~ Rs. 100 Cr.

• Repayment of a portion of some outstanding loans that the business has obtained. ~ Rs. 100 Cr.

• Paying for the company's working capital needs. ~ Rs. 166 Cr.

• General Corporate Purposes.

 

Listed Peers of Classic Electrodes Ltd. 

Company Name	Face Value (Rs. per Share)	EPS (Rs.)	P/E (x)
D & H India Limited	10	6.40	28.93
Ador Welding Limited	10	34.51	28.55
Diffusion Engineers Ltd.	10	9.59	33.91

 

Valuation

Metric	Value
ROE	24.66%
ROCE	17.68%
RoNW	21.95%
PAT Margin	5.10%
Price to Book Value	2.63
EBITDA Margin	10.24%
Debt/Equity	1.23

 

 

Evaluation of P/E Ratio

Considering the FY ended on 28 Feb 2025 with an EPS of Rs. 7.26 from the last year, the resulting P/E ratio is 11.98x. When compared with the industry’s average P/E of 34.62x, it indicates an undervaluation (on a P/E ratio basis only). Hence, the price of the Share seems fairly priced for the investors.

Explore the Studio LSD IPO.

IPO's Strengths 

• Industrial customers and distributors in India and a few international markets trust this strong brand because of its reputation for quality, dependability, and performance.

• Extensive selection of welding supplies, including MIG wires, cast iron electrodes, stainless steel, mild steel, and deep penetration electrodes.

• West Bengal's state-of-the-art industrial plant with automated procedures.

• Pay attention to certifications and quality.

• Product delivery is guaranteed on time via an effective supply chain and solid dealer connections.

 

IPO’s Weaknesses 

• Price volatility of raw materials.

• High Level of competition in the welding industry.

• Regulatory & compliance risks.

• Dependency on market demand.

 

Classic Electrodes IPO GMP (Grey Market Premium)

Classic Electrodes IPO GMP today is Rs. 22 as of 19 Aug 2025 at the time of writing this information. Hence, the Classic Electrodes IPO listing price (estimated) might be Rs. 109 (upper price + current GMP or grey market premium).

Classic Electrodes IPO Summary

The Classic Electrodes India IPO has a market maker portion size of 2,78,400 Shares (Rs. 2.42 Cr).

IPO Opening & Closing Date	22 Aug, 2025 to 26 Aug, 2025
Face Value	Rs. 10 per Share
Issue Price	Rs. 82 to Rs. 87 per Share.
Lot Size	1600 Shares
Issue Size	47,71,200 Shares (Rs. 41.51 Cr)
Offer for Sale	-
Fresh Issue	47,71,200 Shares (Rs. 41.51 Cr)
Listing at	NSE, SME
Issue Type	Bookbuilding IPO
Registrar	MUFG Intime India Pvt. Ltd.

 

 

IPO Lot Details 

Retail investors can invest in a minimum and maximum of 2 Lots (3200 Shares) for Rs. 2,78,400 and in multiples thereof, while for S-HNI investors, the minimum Lot is 3 (4800 Shares) for Rs. 4,17,600.

Minimum Lot Investment (Retail)	2 Lots
Maximum Lot Investment (Retail)	2 Lots
S-HNI (Min)	3 Lots

 

Classic Electrodes IPO Allotment Status

To check the Classic Electrodes IPO Allotment Status, visit the official Registrar’s website or the BSE website. Below are the website links for you.

Using BSE Website - ​BSE IPO allotment status

 

Promoters And Management of Classic Electrodes Ltd.

• Mr. Hanuman Prasad Agarwal

• Mr. Sushil Kumar Agarwal

• Mr. Nitesh Agarwal

• Mr. Sunil Kumar Mittal

• M/s Alltime Suppliers Private Limited.

Pre-Issue Promoter Shareholding	97.73%
Post-Issue Promoter Shareholding	71.77%

 

IPO Lead Managers

• GYR Capital Advisors Pvt. Ltd. 

 

 

Dividend Policy

The company has not paid a dividend in the last three financial years.

 

Conclusion

A chance to participate in a reputable welding consumables producer with a strong brand value and steady financial performance is presented by the Classic Electrodes IPO. The business exhibits encouraging growth potential thanks to its varied product line, emphasis on quality, and effective supply chain. Changes in the price of raw materials and industry competitiveness, however, continue to be major hazards.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.