Classic Electrodes (India)
Book Building issueSME₹41.51 Cr issue
+14.94%
Listing gain over issue price
Issue size
₹41.51 Cr
1 lot at cut-off
₹1,39,200
Lot size
1,600shares
Open
22 Aug 2025
Close
26 Aug 2025
Allotment
28 Aug 2025
Listing
01 Sep 2025
Listing performance
Issue price
₹87
Listed at
₹100
Listing-day close
₹95
Latest price
₹44.20
Close on 23 Oct 2026
Listing gain
+14.94%
Return since issue
-49.20%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 Aug 2025 – 26 Aug 2025
- Listing date
- 01 Sep 2025
- Face value
- ₹10 per share
- Issue price
- ₹87 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹41.51 Cr
- Market cap at offer price
- ₹156 Cr
- Promoter holding
- 97.73% → 71.77% pre-issue → post-issue
- ISIN
- INE0UQ601012
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- 1 A, Bonfield Lane, West Bengal
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 13,44,000 | — | — |
| Market maker | 2,78,400 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹87
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,39,200 |
| S-HNI (min) | 2 | 3,200 | ₹2,78,400 |
| S-HNI (max) | 7 | 11,200 | ₹9,74,400 |
| B-HNI (min) | 8 | 12,800 | ₹11,13,600 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
13,44,000
Anchor portion
₹11.69 Cr
at ₹87 per share
Valuation and performance
Valuation at offer price
₹87 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 9.32 | 5.81 |
| P/E (×) | 9.33 | 14.97 |
| Price to book (×) | 2.63 | — |
| Market cap | — | ₹156 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 21.95%
- ROCE
- 17.68%
- Debt / equity
- 1.23
- PAT margin
- 5.10%
- EBITDA margin
- 10.24%
- NAV per share
- ₹33.05
- Price to book
- 2.63
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Classic Electrodes (India)
Classic Electrodes (India) Limited, incorporated in 1997, is engaged in the business of manufacturing welding electrodes and providing engineering solutions to customers in both domestic and international markets. The company has been in existence for twenty-seven years and provides a wide range of product offerings including General Purpose Electrodes, Low Alloy Electrodes, Low Hydrogen Electrodes, Stainless Steel Electrodes, Hard Facing Electrodes, Cast Iron Electrodes, Non-Ferrous Electrodes, Low Heat Input Electrodes, Cutting and Gauging Electrodes, and MIG Wires. The company operates manufacturing facilities in Dhulagarh, West Bengal and Jhajjar, Haryana. As of the period ended February 28, 2025, the company reported revenue from operations of ₹18,760.18 lakhs and restated profit for the period of ₹957.31 lakhs. The company also derives revenue from sales in Bangladesh and Nepal in addition to its dominant domestic market presence.
Company Analysis
from RHPClassic Electrodes manufactures welding electrodes and welding consumables for the domestic and international markets, operating in the industrial manufacturing and welding products sectors.
Classic Electrodes (India) Limited, incorporated in 1997, is engaged in the business of manufacturing welding electrodes and providing engineering solutions to customers in both domestic and international markets. The company has been in existence for twenty-seven years and provides a wide range of product offerings including General Purpose Electrodes, Low Alloy Electrodes, Low Hydrogen Electrodes, Stainless Steel Electrodes, Hard Facing Electrodes, Cast Iron Electrodes, Non-Ferrous Electrodes, Low Heat Input Electrodes, Cutting and Gauging Electrodes, and MIG Wires. The company operates manufacturing facilities in Dhulagarh, West Bengal and Jhajjar, Haryana. As of the period ended February 28, 2025, the company reported revenue from operations of ₹18,760.18 lakhs and restated profit for the period of ₹957.31 lakhs. The company also derives revenue from sales in Bangladesh and Nepal in addition to its dominant domestic market presence.
welding consumablesindustrial manufacturingengineering solutionsheavy engineering capital goods
Objects of the Issue
- Funding capital expenditure of our company to purchase Plant and machinery Upto ₹147.49 lakhs p.26
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our company Upto ₹1000.00 lakhs p.26
- Funding the working capital requirements of the company Upto ₹1,660.00 lakhs p.26
- General Corporate Purposes p.26
- Funding capital expenditure of our company to purchase Plant and Machinery Upto ₹147.49 lakhs p.102
- Repayment of a portion of certain outstanding borrowing availed by our company Upto ₹1,000.00 lakhs p.102
- Funding the Working Capital requirements of the company Upto ₹1,660.00 lakhs p.102
- General Corporate Purposes p.102
- Funding for acquisition of plant and machinery for capacity expansion ₹147.49 lakhs p.157
- Repayment of borrowings Not exceeding ₹1,000 lakhs p.108
- Funding the working capital requirements ₹1,660.00 lakhs p.109
- General corporate purposes Not exceeding 25% of Gross Proceeds p.111
Issue Structure
- Total Issue
- Upto ₹ [●] Lakhs (Upto 47,71,200 Equity Shares of face value of ₹ 10 each)
- Fresh Issue
- Upto 47,71,200 Equity Shares of face value of ₹ 10 each aggregating up to ₹ [●] Lakhs
- Offer for Sale
- Not Applicable as the entire issue constitutes fresh issue of equity shares
- Price Band
- To be decided by our Company in consultation with the Book Running Lead Manager
- Lot Size
- [●] and in multiples of [●] thereafter; subject to a minimum allotment of [●] Equity Shares to the successful applicants
- Face Value
- ₹ 10 each
Business Model
The company manufactures and sells welding electrodes and welding consumables. Revenue from operations comprises sales of these products, with the company selling primarily on open credit with payment terms between 30 to 120 days. For the period ended February 28, 2025, domestic sales represented 99.96% of total sales (₹18,751.86 lakhs) while export sales represented 0.04% (₹8.32 lakhs). The company also sells products in Bangladesh and Nepal. Raw materials, including metals (iron, steel, nickel, titanium wires, titanium oxide), quartz, and chemicals (carbonates, sodium, hydrogen bicarbonate) comprise approximately 47.18% of total revenues for the period ended February 28, 2025.
Business Segments
Manufacturing and sale of General Purpose Electrodes, Low Alloy Electrodes, Low Hydrogen Electrodes, Stainless Steel Electrodes, Hard Facing Electrodes, Cast Iron Electrodes, Non-Ferrous Electrodes, Low Heat Input Electrodes, Cutting and Gauging Electrodes, and MIG Wires to domestic and international markets
Manufacturing and sale of welding electrodes for core industries
Manufacturing and sale of MIG wires for core industries
Manufacture of MIG (Metal Inert Gas) wires for welding applications
Manufacture of welding electrodes including general purpose, low alloy, low hydrogen, stainless steel, hard facing, cast iron, non-ferrous, low heat input, and cutting/gauging electrodes
Manufacture of stainless steel MIG wires for specialized welding applications
Trading of wire rods procured primarily for captive consumption and surplus sales to peers and industry players
Manufacture and sale of covered electrodes for manual metal arc welding of carbon and carbon steel, and welding rods for gas shielded arc welding of structural steel
Manufacture and sale of MIG wires including SS-MIG Wires and MS-MIG Wires
Manufacture of welding fluxes and trading of welding machines
SWOT Analysis
Strengths
- • 27-year operational history in welding electrodes manufacturing(p.25)
- • Strong revenue growth with CAGR of 12.70% over 10 years(p.44)
- • Exceptional profit growth with CAGR of 37.92% over 10 years(p.44)
- • Registered intellectual property portfolio of 30 trademarks and 8 copyrights(p.37)
- • Prominent market position in welding electrodes and MIG wires(p.114)
- • Highly skilled and experienced engineering team(p.114)
- • Advanced manufacturing equipment and technology(p.114)
- • Pan-India service capabilities and geographic reach(p.114)
- • Diverse industrial fabrication project capabilities(p.114)
- • 27 years of market presence and brand reputation(p.159)
- • ISO and quality certifications(p.140)
- • Established manufacturing presence with two factories(p.217)
- • Experienced promoter group with 26+ years in welding electrodes sector(p.199)
- • Consistent profitability with improved margins(p.220)
- • Strong revenue generation with domestic and export sales(p.228)
- • Consistent revenue growth over recent fiscal years(p.259)
- • Substantial improvement in profitability and margins(p.259)
- • Strong EBITDA margin expansion(p.260)
- • Improved return metrics and capital efficiency(p.260)
- • Diversified product portfolio catering to multiple industries(p.278)
- • Multiple regulatory certifications and approvals(p.286)
Weaknesses
- • Heavy dependence on domestic market (99.96% of sales in Feb 2025)(p.36)
- • Concentrated customer base with top 10 customers representing 68.43% of revenue(p.48)
- • No long-term customer contracts; customers can cancel purchase orders at short notice(p.49)
- • Inability to trace certain historical corporate records from 1997(p.37)
- • Significant exposure to raw material cost volatility (47.18% of revenue in Feb 2025)(p.40)
- • No long-term supply contracts with raw material suppliers; subject to price volatility(p.44)
- • Educational qualifications and experience proof missing for some Directors and Senior Management Personnel(p.45)
- • Company has not accounted for MSMED Act interest provisions; potential regulatory exposure(p.39)
- • Under-utilization of manufacturing capacity (66.55% for Electrodes; 61.71% for MIG Wire in Feb 2025)(p.46)
- • Significant portion of revenue (70.01%) concentrated in West Bengal region(p.42)
- • High financial leverage with total borrowings of ₹5,349.84 Lakhs (Feb 2025) vs net worth of ₹4,360.49 Lakhs(p.28)
- • Leasehold manufacturing facilities with renewal risks; one facility lease expires May 30, 2025(p.51)
- • Dependence on lease agreements with onerous conditions and risk of non-renewal(p.52)
- • Labour-intensive operations with history of labour disputes and no formal dispute resolution policy(p.52)
- • High debt burden with restrictive covenants that could impair operations(p.54)
- • Related party transactions pose potential conflicts of interest with shareholders(p.53)
- • Promoter shareholding at significantly lower acquisition cost than IPO price(p.53)
- • Dependence on third-party transportation providers with no alternative arrangements secured(p.56)
- • Dependence on contract labour with no assurance of renewal at viable terms(p.56)
- • Unplanned operational disruptions from equipment failure and power shortages(p.57)
- • High debt-to-equity ratio indicating significant financial leverage(p.117)
- • Substantial dependence on domestic market with minimal export presence(p.144)
- • High concentration of revenue in single state (West Bengal)(p.140)
- • Significant working capital dependence on borrowings(p.109)
- • Declining EBITDA margin trend(p.117)
- • High financial leverage with debt-to-equity ratio of 1.23(p.251)
- • Significant short-term borrowings of ₹5,191.68 lakhs creating repayment pressure(p.225)
- • Material accounting discrepancies in quarterly returns to banks(p.246)
- • Low MSME payment compliance with interest accrual on late payments(p.245)
- • Pending regulatory assessments and tax disputes(p.244)
- • Concentration of raw material purchases among few suppliers(p.261)
- • High customer concentration risk(p.279)
- • Significant trade receivables concentration and credit exposure(p.262)
- • High leverage with total debt to equity ratio of 1.23(p.260)
- • Tax proceedings and regulatory disputes involving promoters(p.283)
- • Pending litigation regarding customs duty classification(p.281)
Opportunities
- • Global welding consumables market projected to reach US$ 1.57 billion by 2028, growing at 6.1% CAGR(p.25)
- • India positioning as global manufacturing hub; government infrastructure investment of ₹111 lakh crore (2020-2025)(p.25)
- • Heavy engineering capital goods industry projected to grow at 7-8% CAGR (FY23-26), reaching ₹3,300-3,400 billion(p.25)
- • Opportunity to expand geographic presence and increase export sales (currently only 0.04% of sales)(p.36)
- • Proposed expansion at Dhulagarh facility to increase manufacturing capacity(p.39)
- • Capacity expansion to meet growing domestic and export demand for welding products(p.104)
- • Automation of production processes to increase efficiency and product quality(p.104)
- • Utilization of underutilized manufacturing capacity at Unit-II to serve future demand(p.104)
- • Strong growth in Indian welding consumables market(p.138)
- • Government infrastructure investment driving sector growth(p.139)
- • Capacity expansion to meet growing demand(p.157)
- • Growth in construction sector driving welding consumables demand(p.135)
- • India's manufacturing hub ambitions supporting sector growth(p.139)
- • Expansion into high-margin specialty products(p.140)
- • Expansion via bonus share issuance signaling confidence and investor engagement(p.224)
- • Growth in domestic welding electrodes market with established customer relationships(p.228)
- • Capital work in progress indicating planned capacity expansion(p.245)
- • Expansion into Eastern India with growing market demand(p.260)
- • Increased geographical presence driving organic growth(p.260)
- • Strong industrial demand for welding products and consumables(p.264)
- • Strategic marketing and credibility building with existing customers(p.260)
- • Potential to increase market share through capacity expansion(p.263)
Threats
- • Welding industry exposed to cyclicality dependent on heavy engineering, oil & gas, shipbuilding sectors(p.25)
- • Vulnerability to import tariffs, free trade agreements, and bilateral trade policy changes(p.36)
- • Raw material supply disruptions from geopolitical conflicts (Russia-Ukraine impact noted in FY2023)(p.40)
- • Manufacturing facilities concentrated in two geographic regions (West Bengal and Haryana); vulnerability to localized disruptions(p.36)
- • Dependence on continuous power supply; any prolonged suspension could materially affect business(p.49)
- • Robotics and automation deployment risks including technological obsolescence and technical glitches(p.49)
- • Regulatory risk: multiple pending approvals including Hazardous Waste Consent and welding consumables certification renewals(p.37)
- • Pending trademark applications (Captain, Bullet Arc, logo) vulnerable to third-party opposition(p.37)
- • Outstanding litigation involving Company, Directors and Promoters; tax cases pending totaling ₹605.48 Lakhs(p.38)
- • Economic downturns in domestic market could severely impact revenues given 99.96% domestic dependency(p.36)
- • Industry sensitivity to general economic downturns affecting profitability(p.55)
- • Intense competition from unorganized sector with low entry barriers(p.55)
- • Import restrictions on raw materials could disrupt manufacturing and supply chain(p.53)
- • Product defects and liability claims despite quality control efforts(p.54)
- • Natural calamities and force majeure events disrupting operations and supply chains(p.60)
- • Volatility in inflation rates increasing costs that may not be passed to customers(p.59)
- • Regulatory changes and stricter environmental compliance requirements(p.52)
- • Contract labour prohibition under Contract Labour Act could disrupt operations(p.56)
- • Raw material price volatility impacting profitability(p.109)
- • Intense competition from both organized and unorganized players(p.159)
- • Global economic slowdown affecting demand(p.129)
- • Regulatory compliance requirements and quality standards(p.166)
- • Competitors with greater financial and technical resources(p.159)
- • Dependence on key customers and sales concentration(p.139)
- • High interest expense on borrowings consuming profitability(p.230)
- • Regulatory and compliance risks including pending tax disputes with significant exposure(p.244)
- • Working capital pressure with growing inventory and receivables(p.215)
- • Charges not registered with ROC within statutory periods indicating governance gaps(p.249)
- • Foreign exchange exposure on export sales subject to currency volatility(p.228)
- • Volatility in raw material prices and commodity price fluctuations(p.262)
- • Absence of long-term raw material supply contracts exposes company to supply risks(p.261)
- • Exposure to foreign exchange and import duty risks(p.261)
- • Intense competition from fragmented industry with low entry barriers(p.263)
- • Economic cyclicality and demand vulnerability(p.263)
- • Potential impact of regulatory changes and statutory compliance(p.262)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Hanuman Prasad Agarwal | Promoter | 4.93% | 3.62% |
| Mr. Sushil Kumar Agarwal | Promoter | 5.21% | 3.83% |
| Mr. Nitesh Agarwal | Promoter | — | — |
| Mr. Sunil Kumar Mittal | Promoter | 0.09% | 0.07% |
| Mr. Ayush Agarwal | Promoter | — | — |
| Mr. Naresh Kumar Agarwal | Promoter | 0.27% | 0.20% |
| M/s Panchshul Merchants Private Limited | Promoter | 16.67% | 12.25% |
| M/s Gunnayak Commercial Private Limited | Promoter | 15.16% | 11.13% |
| M/s Alltime Suppliers Private Limited | Promoter | 22.00% | 16.16% |
| Mr. Hanuman Prasad Agarwal | Promoter | 4.93% | — |
| Mr. Sushil Kumar Agarwal | Promoter | 5.21% | — |
| Mr. Sunil Kumar Mittal | Promoter | 0.09% | — |
| Mr. Naresh Kumar Agarwal | Promoter | 0.27% | — |
| M/s Alltime Suppliers Private Limited | Promoter Group | 22.00% | — |
| M/s Panchshul Merchants Private Limited | Promoter Group | 16.67% | — |
| M/s Gunnayak Commercial Private Limited | Promoter Group | 15.16% | — |
| Mr. Nitesh Agarwal | Promoter | — | — |
| Mr. Ayush Agarwal | Promoter | — | — |
| Hanuman Prasad Agarwal | Promoter | — | — |
| Sushil Kumar Agarwal | Promoter | — | — |
| Nitesh Agarwal | Promoter | — | — |
| Sunil Kumar Mittal | Promoter | — | — |
| Alltime Suppliers Private Limited | Promoter Group | — | — |
| Sushil Kumar Agarwal | Promoter | 5.21% | — |
| Hanuman Prasad Agarwal | Promoter | 4.93% | — |
| Sunil Kumar Mittal | Promoter | 0.09% | — |
| Nitesh Agarwal | Promoter | — | — |
| Ayush Agarwal | Promoter | — | — |
| Naresh Kumar Agarwal | Promoter | 0.27% | — |
| M/s Alltime Suppliers Private Limited | Promoter | 22.00% | — |
| M/s Panchshul Merchants Private Limited | Promoter | 16.67% | — |
| M/s Gunnayak Commercial Private Limited | Promoter | 15.16% | — |
| Hanuman Prasad Agarwal | Promoter/Non-Executive Director | — | — |
| Sunil Kumar Mittal | Promoter | — | — |
Leadership
Mr. Sushil Kumar Agarwal · Managing Director and Chairman
Ms. Bhagyashree Agarwal · Company Secretary and Compliance Officer
Mr. Ashish Murarka · Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Classic Electrodes (India) IPO FAQs
What is the lot size of Classic Electrodes (India) IPO?
The minimum lot size of Classic Electrodes (India) IPO is 1,600 shares. One lot costs ₹1,39,200 at the cut-off price.
When does Classic Electrodes (India) IPO open and close?
Classic Electrodes (India) IPO opened for subscription on 22 Aug 2025 and closed on 26 Aug 2025.
What is the listing date of Classic Electrodes (India) IPO?
Classic Electrodes (India) IPO listed on 01 Sep 2025.