Classic Electrodes (India) Ltd (NSE SME) IPO GMP & Review , Analysis

Classic Electrodes (India)

 August 22, 2025 – August 26, 2025

Price	₹82 - ₹87
Premium	₹22
Lot size	1600
Allotment	Aug 28, 2025
Listing	Sep 1, 2025

Classic Electrodes (India) – About

Category	Lot(s)	Qty	Amount	Reserved
INDIVIDUAL	2	3,200	2,78,400	491
sHNI	3	4,800	4,17,600	47
bHNI	8	12,800	11,13,600	93

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IPO Details

Particulars	Values
Total Issue Size	48,00,000 shares (₹41.7 Cr)
Fresh Issue	48,00,000 shares (₹41.7 Cr)
Issue Type	Bookbuilding IPO
Listing At	NSE SME
Share Holding Pre Issue	1,31,93,750 shares
Share Holding Post Issue	1,79,93,750 shares
Reserved for Market Maker	2,78,400 shares

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IPO Reservation

Investor Category	Shares Offered
QIB	Not more than 50% of the Net Issue
Retail	Not less than 35% of the Net Issue
NII	Not less than 15% of the Net Issue

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Key Performance Indicators

KPI	Values
ROE	24.66%
ROCE	17.68%
Debt/Equity	1.23
RoNW	21.95%
PAT Margin	5.10%
EBITDA Margin	10.24%

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Financial Details (₹ in Crores)

Period Ended	Mar-24	Mar-23	Mar-22
Assets	92	77	75
Total Income	194	151	134
Profit After Tax	12	2	1
Net Worth	34	22	20
Total Borrowing	46	43	39

About Company

Established: 1997

Headquarters: Kolkata, West Bengal, India

Core Business: Manufacturing of welding consumables

Products:

Mild Steel Electrodes

Stainless Steel Electrodes

Cast Iron Electrodes

Deep Penetration Electrodes

MIG Wires

Key Offerings: Welding electrodes & engineering solutions for domestic and international markets

Manufacturing Units:

Unit I – Dhulagarh, West Bengal

Unit II – Jhajjar, Haryana

Unit III – Bahadurgarh, Haryana (Closed in FY 2023–24)

Strategic Advantage: Proximity to transport networks for efficient distribution and sourcing

Employees (as of July 31, 2024): 78 permanent staff

Strength

Technical Expertise : Strong knowledge of electrode manufacturing processes, materials, and technologies.

Quality Control : Consistent production of high-quality electrodes that meet industry standards and client requirements.

Innovation : Ability to develop new designs, materials, and techniques to stay competitive and meet changing market needs.

Weakness

Heavy Dependence on Domestic Market : A major portion of revenue comes from domestic sales; any slowdown in this market could reduce market share and hurt financial performance.

Geographic Concentration of Manufacturing : All manufacturing facilities are located in limited regions, making operations vulnerable to local disruptions such as unrest, natural disasters, or service breakdowns.

Missing Historical Corporate Records : Some corporate documents filed since incorporation in 1997 are untraceable, which could pose compliance or legal challenges.