New Delhi, 01 September (Kiran News): Classic Electrodes, a company engaged in manufacturing welding consumables, made a premium debut in the stock market today, delighting its IPO investors. However, this joy was short-lived as the shares hit the lower circuit due to selling pressure soon after listing. The company’s shares were issued at a price of ₹87 under the IPO. Today, the stock was listed at ₹100 on the NSE SME platform, marking a 14.94% premium. But soon after a strong listing, selling began, and within a short time, the shares slipped to the lower circuit level of ₹95. Despite the lower circuit, IPO investors ended the first day with a profit of 9.91%.
Classic Electrodes’ IPO worth ₹41.51 crore was open for subscription from August 22 to August 26. The IPO received an overwhelming response from investors, leading to an overall subscription of 179.97 times. The reserved portion for Qualified Institutional Buyers (QIB) was subscribed 84.88 times, while the reserved portion for Non-Institutional Investors (NII) saw 356.75 times subscription. The reserved portion for retail investors was subscribed 158.44 times. Under this IPO, the company issued 47,71,200 new shares with a face value of ₹10 each. The funds raised through the IPO will be used by the company to purchase new machinery and plants, reduce existing debt, meet working capital requirements, and for general corporate purposes.
According to claims made in the prospectus, the company’s financial health has continuously improved. In the financial year 2022-23, the company reported a net profit of ₹1.49 crore, which increased to ₹2.08 crore in the next financial year 2023-24, and further jumped to ₹12.30 crore in 2024-25. During this period, the company’s revenue grew at a compound annual growth rate (CAGR) of over 19%, reaching ₹194.41 crore. However, the company’s debt also continued to rise, standing at ₹40.21 crore at the end of FY 2021-22, increasing to ₹44.11 crore at the end of FY 2022-23, ₹46.73 crore at the end of FY 2023-24, and surging to ₹53.50 crore by February 2025.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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