India’s IPO market remains robust in August 2025, with several high-profile offerings lined up across the manufacturing and engineering sectors. Riding this momentum, Classic Electrodes (India) Limited, a leading manufacturer of welding consumables, has opened its IPO on August 22, 2025.
Here is a detailed insight into the Classic Electrodes IPO details and the industry outlook.
About Classic Electrodes (India) Ltd.
Established in 1997, Classic Electrodes (India) Limited is a well-known manufacturer of a wide range of welding consumables. The company’s product portfolio includes mild steel, stainless steel, cast iron, and deep penetration electrodes, as well as MIG wires. With two manufacturing units in West Bengal and Haryana, the company serves both domestic and international clients.
Classic Electrodes has established a strong reputation for producing high-quality products that are used in various industries. The company’s focus on research and development allows it to create specialised products and solutions for its customers.
Classic Electrodes (India) Ltd. IPO Details
The Classic Electrodes IPO is a book-building issue of ₹41.51 crore. The entire issue is a fresh issue of 47.71 lakh shares. The proceeds will be used for capital expenditure, repayment of borrowings, and funding working capital requirements.
Important IPO Timeline
| Event | Date |
| IPO Open Date | Fri, Aug 22, 2025 |
| IPO Close Date | Tue, Aug 26, 2025 |
| Tentative Allotment | Thu, Aug 28, 2025 |
| Initiation of Refunds | Thu, Aug 28, 2025 |
| Credit of Shares to Demat | Fri, Aug 29, 2025 |
| Tentative Listing Date | Mon, Sep 1, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on Aug 26, 2025 |
Key IPO Details
| Particulars | Details |
| Face Value | ₹10 per share |
| Issue Price Band | ₹82 to ₹87 per share |
| Lot Size | 1,600 Shares |
| Total Issue Size | 47,71,200 shares (aggregating up to ₹41.51 Cr) |
| Fresh Issue | 47,71,200 shares (aggregating up to ₹41.51 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | NSE SME |
| Shareholding Pre-Issue | 1,31,93,750 shares |
| Shareholding Post-Issue | 1,79,64,950 shares |
Lot Size of Classic Electrodes (India) Ltd. IPO
| Application | Lots | Shares | Amount |
| Individual investors (Retail) (Min) | 2 | 3,200 | ₹2,78,400 |
| Individual investors (Retail) (Max) | 2 | 3,200 | ₹2,78,400 |
| S-HNI (Min) | 3 | 4,800 | ₹4,17,600 |
| S-HNI (Max) | 7 | 11,200 | ₹9,74,400 |
| B-HNI (Min) | 8 | 12,800 | ₹11,13,600 |
Classic Electrodes (India) Ltd. Financials
Classic Electrodes (India) Ltd. has demonstrated significant financial growth, with a strong performance in key metrics such as revenue and profit. As the company prepares for its IPO, it is valued at a market capitalisation of ₹156.29 crore at the upper end of the price band.
Key Performance Indicators (as of Mar 31, 2024)
- Return on Equity (ROE): 24.66%
- Return on Capital Employed (ROCE): 17.68%
- Debt/Equity: 1.23
- EBITDA Margin: 10.24%
- Price-to-Book Value: 2.54
- Pre-IPO P/E: 11.98
- Post-IPO P/E: 15.03
Company Financial Snapshot
| Period Ended | 28 Feb 2025 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets (₹ Cr) | 116.34 | 89 | 76.79 | 74.99 |
| Total Income (₹ Cr) | 187.9 | 194 | 151.13 | 134.37 |
| Profit After Tax (₹ Cr) | 9.57 | 12 | 2.08 | 1.49 |
| EBITDA (₹ Cr) | 19.24 | 23 | 8.54 | 6.08 |
| Net Worth (₹ Cr) | 43.6 | 34 | 21.73 | 19.65 |
| Reserves and Surplus (₹ Cr) | 30.41 | 28.75 | 16.46 | 14.37 |
| Total Borrowing (₹ Cr) | 53.5 | 46.73 | 44.11 | 40.21 |
Classic Electrodes (India) Ltd.: Industry Outlook
The welding consumables market in India is driven by growth in the infrastructure, manufacturing, and construction sectors. Classic Electrodes, with its established brand and diverse product range, is well-positioned to capitalise on this demand. The company’s expansion plans, funded by the IPO proceeds, aim to further strengthen its market presence.
However, investors should be aware of potential risks such as high dependence on raw material imports, which can lead to cost volatility, and competition from both domestic and international players.
Use of IPO Proceeds
The net proceeds from the fresh issue will be utilised for:
| S.No. | Objects of the Issue | Expected Amount (in Millions) |
| 1 | Funding capital expenditure of our company to purchase Plant and Machinery | 100 |
| 2 | Repayment of a portion of certain outstanding borrowing availed by the company | 100 |
| 3 | Funding the working capital requirements of the company | 166 |
| 4 | General Corporate Purposes | — |
Classic Electrodes IPO Peer Comparison
The electrical manufacturing sector is highly competitive. Classic Electrodes’ key listed peers include Graphite India, HEG Limited, Bharat Heavy Electricals Limited (BHEL), Electrotherm India, and Vardhman Special Steels. While these companies operate in the same industry, they have varying capacities, product portfolios, and market strategies. When evaluating the Classic Electrodes IPO, investors should consider its market positioning, growth potential, and strategic plans in relation to its peers.
Conclusion
Classic Electrodes IPO offers investors an opportunity to invest in a company with a strong market presence and a robust growth trajectory in the manufacturing sector. The company’s healthy financial performance and strategic use of IPO funds for expansion and debt reduction suggest a positive long-term outlook.
As an SME IPO, it carries a certain level of risk and may be suitable for investors with a moderate to high-risk appetite and a long-term investment horizon. A thorough review of the company’s financials and market position is recommended before making an investment decision.
