Classic Electrodes Launches Rs 41.51 Crore IPO Amid Tepid Market Response
Classic Electrodes, a Kolkata-based welding consumables manufacturer, launched its IPO to raise Rs 41.51 crore. The issue offers 47.71 lakh fresh shares at a price band of Rs 82-87 per share. The company plans to use the proceeds for purchasing new plant and machinery, debt repayment, and working capital requirements. Despite raising Rs 11.69 crore from anchor investors, the IPO has reportedly received a subdued response in the market. The shares are set to list on the NSE SME platform on September 1.
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Classic Electrodes, a Kolkata-based welding consumables manufacturer, has opened its Initial Public Offering (IPO) for subscription, seeking to raise Rs 41.51 crore. The IPO, which began on August 22, has reportedly received a muted response in the market.
IPO Details
- Issue Size: 47.71 lakh fresh shares
- Price Band: Rs 82-87 per share
- Lot Size: 3,200 shares for retail investors
- Anchor Investment: Rs 11.69 crore raised from anchor investors (13.44 lakh shares allotted)
Company Overview
Classic Electrodes, founded in 1997, specializes in manufacturing a range of welding consumables including:
- Mild steel electrodes
- Stainless steel electrodes
- Cast iron electrodes
- Deep penetration electrodes
- MIG wires
The company operates two manufacturing units, strategically located in West Bengal and Haryana, employing 95 permanent staff. Classic Electrodes serves both domestic and international markets.
Financial Performance
For the 11 months ending February, Classic Electrodes reported:
- Revenue: Rs 188.00 crore
- Net Profit: Rs 9.60 crore
IPO Proceeds Allocation
The company plans to utilize the IPO proceeds for:
| Purpose | Amount (in Rs crore) |
|---|---|
| New plant and machinery purchase | 10.00 |
| Debt repayment | 10.00 |
| Working capital requirements | 16.60 |
Listing Details
The shares are scheduled to list on the NSE SME platform on September 1. However, reports suggest that the issue is experiencing subdued activity in unofficial markets.
Despite the muted market response, Classic Electrodes' IPO represents an opportunity for investors interested in the welding consumables sector. The company's established presence in both domestic and international markets, coupled with its plans for expansion and debt reduction, may attract attention from discerning investors. However, as with all investments, potential subscribers should carefully consider the risks and their own financial goals before making a decision.
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