August 17, 2025
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Classic Electrodes IPO Review
Company Overview
Incorporated in 1997 and headquartered in Kolkata, West Bengal, Classic Electrodes (India) Limited is engaged in the manufacturing of welding consumables like mild steel electrodes, stainless steel electrodes, cast iron electrodes, deep penetration electrodes, and MIG wires. These products cater to diverse industrial needs, from general-purpose welding to heavy-duty and corrosion-resistant applications.
The company operates two strategically located manufacturing units — Unit I at Dhulagarh, West Bengal, and Unit II at Jhajjar, Haryana — ensuring efficient distribution and raw material procurement. Unit III at Bahadurgarh, Haryana, was shut down in FY 2023–24. As of July 31, 2024, the company employed 78 permanent staff members.
IPO Details
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Issue Size: Rs. 41.51 crore (Fresh issue: 48 lakh shares)
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Price Band: Rs. 82 – Rs. 87 per share
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Lot Size: 1,600 shares
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Minimum Investment (Retail): Rs. 1,31,200
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Minimum Investment (HNI): 2 lots (Rs. 2,78,400)
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Lead Manager: GYR Capital Advisors Pvt. Ltd.
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Registrar: MUFG Intime India Pvt. Ltd.
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IPO Dates: To be announced
Financial Performance (Rs. crore)
| Period Ended | Total Income | PAT | Net Worth | Total Borrowing |
|---|---|---|---|---|
| 31-Mar-24 | 194.41 | 12.28 | 33.92 | 45.73 |
| 31-Mar-23 | 151.13 | 2.08 | 21.64 | 43.11 |
| 31-Mar-22 | 134.37 | 1.45 | 19.55 | 39.21 |
The company’s revenue has grown at a healthy pace, rising 44.8% in the last two years. Profitability has also improved sharply, with PAT increasing more than 8x from FY22 to FY24. The net worth has strengthened, though borrowings remain at moderate levels.
Strengths
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Established presence in welding consumables manufacturing
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Diverse product portfolio catering to multiple industries
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Significant improvement in profitability over the last two years
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Strategic plant locations aiding distribution and raw material sourcing
Risks
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Dependence on industrial demand cycles
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Exposure to raw material price fluctuations (e.g., steel, alloys)
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Competitive industry with large and established players
Chanakya’s View
Classic Electrodes has moved from modest profitability to healthy margins in a short period, supported by strong revenue growth and operational improvements. The IPO proceeds will fund expansion, which can help capture a larger market share. However, the high minimum investment size and cyclical nature of industrial demand mean this issue may appeal more to informed and risk-tolerant investors.
Those seeking listing gains should watch GMP trends and subscription data closely, while long-term investors may find value if growth momentum sustains and debt levels are managed prudently.
- Study IPO Details
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