Classic Electrodes' Initial Public Offering (IPO) is set to mark a significant milestone today with the finalization of its allotment basis. The Rs 41.50 crore public offering has garnered substantial attention from investors across all categories.

Overwhelming Subscription Rates

The IPO witnessed an extraordinary response from investors, achieving an overall subscription rate of 180 times. Breaking it down by investor categories:

• Retail investors: 158.44 times oversubscribed
• Non-institutional investors: 356.75 times oversubscribed
• Qualified institutional buyers: 84.88 times oversubscribed

This robust demand across all segments underscores the strong investor interest in Classic Electrodes.

Grey Market Premium and Potential Listing Gains

The grey market is showing considerable enthusiasm for Classic Electrodes shares. With a grey market premium standing at 20%, investors are anticipating potential listing gains above the issue price of Rs 87.00 per share. However, it's important to note that grey market premiums are unofficial and not guaranteed.

Key Dates for Investors

Investors should mark their calendars for the following crucial dates:

• August 29, 2023: Processing of refunds and crediting of shares to successful applicants
• September 1, 2023: Scheduled listing of Classic Electrodes shares on the NSE SME platform

About Classic Electrodes

Founded in 1997, Classic Electrodes has established itself as a manufacturer of welding consumables. The company operates manufacturing facilities in West Bengal and Haryana, catering to the welding industry's needs.

Financial Performance

Classic Electrodes has demonstrated strong financial performance:

The company reported a Return on Equity (ROE) of 24.66%, indicating efficient use of shareholders' equity in generating profits.

Conclusion

The overwhelming response to Classic Electrodes' IPO, coupled with a promising grey market premium, suggests strong investor confidence in the company's prospects. As the allotment finalizes today, all eyes will be on the upcoming listing on September 1, 2023, to see how the stock performs on its debut on the NSE SME platform.

Two initial public offerings (IPOs) are closing for subscription on Tuesday, both demonstrating robust investor enthusiasm. Anondita Medicare and Classic Electrodes, set to list on the NSE SME platform, have garnered significant attention from the market.

Anondita Medicare IPO

Anondita Medicare, a manufacturer of condoms with an annual production capacity exceeding 56 crore units, has seen its IPO subscribed 150.45 times. The company's grey market premium (GMP) stands at Rs 70, suggesting a potential listing price of Rs 215 per share. This indicates a possible 48.28% premium over the upper price band limit of Rs 145.

Key details of Anondita Medicare's IPO:

• Issue size: Rs 69.50 crore
• Offering: 48 lakh fresh shares
• Price band: Rs 137-145 per share

Classic Electrodes IPO

Classic Electrodes, specializing in the production of stainless steel electrodes, cast iron electrodes, and deep penetration electrodes, has its IPO subscribed 78.20 times. The company's GMP is Rs 21, pointing to a potential listing price of Rs 108 per share, representing a 24.14% premium over the upper limit of Rs 87.

Key details of Classic Electrodes' IPO:

• Issue size: Rs 41.51 crore
• Offering: 48 lakh fresh shares
• Price band: Rs 82-87 per share

IPO Timeline

Both companies have set important dates for their IPO process:

• Subscription Closing: Tuesday (today)
• Share Allotment: August 28
• Listing Date: September 1 (on NSE SME platform)

The strong subscription rates for both IPOs reflect high investor interest in these small and medium enterprise (SME) offerings. Investors will be keenly watching the share allotment process and the subsequent listing performance of these companies on the NSE SME platform.

As always, investors should conduct their own research and consider their risk appetite before making investment decisions, particularly in the SME segment which can be more volatile compared to larger cap stocks.