Classic Electrodes, a prominent welding consumables manufacturer, made a robust debut on the National Stock Exchange's (NSE) Small and Medium Enterprises (SME) platform, following its highly successful Initial Public Offering (IPO).

IPO Performance

The company's Rs 41.51 crore IPO, priced at Rs 87 per share, witnessed overwhelming investor interest:

• Overall subscription: 179.97 times
• Retail investors: 158.44 times
• Non-institutional investors: 356.75 times
• Qualified institutional buyers: 84.88 times

Classic Electrodes also raised Rs 11.69 crore from anchor investors, further solidifying its market position.

Company Profile

Classic Electrodes operates two manufacturing units located in West Bengal and Haryana. The company specializes in producing a wide range of welding consumables, including:

• Mild steel electrodes
• Stainless steel electrodes
• Cast iron electrodes
• Deep penetration electrodes
• MIG wires

Financial Performance

The company has demonstrated strong financial growth over the past few years:

IPO Proceeds Utilization

Classic Electrodes plans to utilize the IPO proceeds for various purposes:

• Working capital requirements: Rs 16.6 crore
• Debt repayment: Rs 10 crore
• Plant and machinery: Rs 1.47 crore
• General corporate purposes

Market Debut

With a 20% grey market premium, Classic Electrodes' shares are expected to list around Rs 104-105, reflecting strong investor confidence in the company's prospects.

The successful IPO and strong market debut of Classic Electrodes underscore the growing interest in the SME sector and the company's potential in the welding consumables market.

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.