Classic Electrodes IPO commenced on Friday, August 22 and will conclude on Tuesday, August 26. Classic Electrodes IPO price band has been set at ₹82 to ₹87 equity share, each with a face value of ₹10. Investors can place bids for a minimum of 1,600 equity shares and in multiples of 1,600 shares thereafter.

Founded in 1997 and based in Kolkata, West Bengal, Classic Electrodes (India) Limited is a leading Indian producer focused on welding consumables, such as electrodes and MIG wires.

The company produces welding electrodes and offers engineering solutions for clients both domestically and internationally.

Classic Electrodes provides a wide variety of welding consumables intended for different industrial uses. The company operates two manufacturing facilities: Unit I located in Dhulagarh, West Bengal, and Unit II situated in Jhajjar, Haryana. Unit III, which was previously in Bahadurgarh, Haryana, was closed in the fiscal year 2023-2024.

These facilities are strategically positioned in West Bengal, allowing for convenient access to different modes of transportation for effective distribution of products, sourcing of raw materials, and servicing of customers.

As per red herring prospectus (RHP), the company’s listed peers are D & H India Ltd (with a P/E of 28.93), Ador Welding Ltd (with a P/E of 28.55), and Diffusion Engineers Ltd (with a P/E of 33.91).

Classic Electrodes IPO Subscription Status

Classic Electrodes IPO subscription status is 1.62x on day 1 so far, as per chittorgarh.com. The retail portion was subscribed 2.15x, and NII portion was booked 1.16 times. The qualified institutional buyers portion is booked 1.03 times.

The company has received bids for 50,86,400 shares against 31,47,200 shares on offer on the first bidding day, at 15:30 IST, according to data on chittorgarh.com.

Classic Electrodes IPO details

Classic Electrodes IPO intends to use the net proceeds from the offering for several purposes, including financing capital expenditure to acquire plant and machinery, settling outstanding debts, supporting working capital needs, and covering general corporate expenses.

GYR Capital Advisors Pvt. Ltd acts as the book-running lead manager, while MUFG Intime India Pvt. Ltd serves as the registrar for the issue. Wiinance Financial Services Pvt. Ltd is the market maker for the company.

Classic Electrodes IPO GMP today

Classic Electrodes IPO GMP today is +20. This indicates Classic Electrodes share price were trading at a premium of ₹20 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Classic Electrodes share price was indicated at ₹107 apiece, which is 22.99% higher than the IPO price of ₹87.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.