Classic Electrodes, a Kolkata-based manufacturer of welding consumables such as electrodes and MIG wires, made its market debut today. The company’s IPO had received an overwhelming response from investors, with subscriptions crossing 179 times overall.
The shares were issued at ₹87 apiece and got listed on the NSE SME platform at ₹100, delivering investors a 14.94% listing gain. However, the excitement was short-lived as the stock quickly corrected to ₹95, leaving investors with a 9.19% profit from the issue price.
IPO Subscription Details
The ₹41.51 crore IPO of Classic Electrodes was open for subscription between August 22-26. Investor interest was exceptionally high, making it one of the most talked-about SME IPOs in recent weeks.
- Overall Subscription: 179.97 times
- QIBs (Qualified Institutional Buyers): 84.88 times (ex-anchor)
- NIIs (Non-Institutional Investors): 356.75 times
- Retail Investors: 158.44 times
A total of 47,71,200 fresh equity shares with a face value of ₹10 each were issued.
Fund Utilization Plan
Proceeds raised through the IPO will be used across multiple business requirements:
| Purpose | Allocation |
|---|---|
| Plant & Machinery Purchase | ₹1.47 crore |
| Debt Repayment | ₹10 crore |
| Working Capital Needs | ₹16.60 crore |
| General Corporate Purposes | Remaining funds |
About Classic Electrodes
Founded in 1997, Classic Electrodes has established itself as a key player in the welding consumables industry. Its product line includes:
- Mild Steel Electrodes
- Stainless Steel Electrodes
- Cast Iron Electrodes
- Deep Penetration Electrodes
- MIG Wires
The company serves both domestic and international markets. Right now, it has two manufacturing units: one in Jhajjar, Haryana, and the other in Dhulagori, West Bengal. at FY2024, a third unit at Bahadurgarh, Haryana, was closed.
Financial Performance
Classic Electrodes has shown steady financial growth in recent years:
- FY2022: Net profit of ₹1.49 crore
- FY2023: Net profit rose to ₹2.08 crore
- FY2024: Profit surged to ₹12.30 crore
- FY2025 (11 months): Profit stood at ₹9.57 crore with net income of ₹187.90 crore
The company’s revenue has grown at a CAGR of 19%, reflecting strong demand for its products. However, debt levels have also been on the rise:
- FY2022: ₹40.21 crore
- FY2023: ₹44.11 crore
- FY2024: ₹46.73 crore
- Feb 2025: ₹53.50 crore
Market Outlook
Classic Electrodes has shown steady development in sales and profits, even while its debt is mounting. This is because it has a wide range of products and a large customer base. The IPO listing brought investors a quick profit, but how well it does in the short term will depend on how the market moves.
