Classic Electrodes (India) Ltd IPOCLASSICEIL

The IPO opens on 22 Aug 2025 & closes on 26 Aug 2025.

Classic Electrodes (India) Limited was originally incorporated as Classic Electrodes (India) Private Limited' dated September, 30, 1997, issued by the Registrar of Companies, Kolkata. Thereafter, Company name changed from Classic Electrodes (India) Private Limited' to Classic Electrodes (India) Limited', consequent to conversion of Company from Private to Public Limited on April 18, 2009 and a fresh Certificate of Incorporation was issued by the Registrar of Companies, Kolkata on June 13, 2009. The Company commenced welding electrode manufacturing in Tikiapara, Howrah, West Bengal, achieving ISO 9001 certification. It then received Factory approval in year 2000 by the Bureau of Indian Standards. In 2004, it received factory approval by the Research Designs and Standards Organisation. It relocated their factory to Dhulagarh, enabling an increase in production capacity and introducing diversified products such as mild steel MIG wire in 2009. The Company's Unit 2 was established in Bahadurgarh, Haryana in 2014. It achieved integration of upgraded manufacturing technology for stainless steel MIG wire in 2021. It relocated Unit 2 from Bahadurgarh to Jhajjar, Haryana, amplifying production capacity with unparalleled efficiency and reliability. The Company engaged in the business of manufacturing of welding electrodes and providing engineering solutions to customers both in domestic and international markets. The Company presently operate from two manufacturing units, out of which Unit I located in Dhulagarh, West Bengal, and Unit II located at Jhajjar, Haryana for processing and manufacturing of products. At Unit I, it manufacture Welding Electrodes and MIG Wires, while Unit II focuses exclusively on MIG Wires. The Company, apart from producing high-volume General-Purpose Electrodes is involved in production of high quality special consumable like Low hydrogen, Low Alloy, Stainless steel, Cast Iron, Hard surfacing and Reclamation electrodes. The Company is accredited certified under ISO - 9001:2008 Quality Management Systems by Moody International Certification Limited. The Company is holding Bureau of India standard (BIS) License and registered under Directorate General of Supplies & Disposal (DGS&D) - Govt. of India The Company is planning a Public Offer of upto 48,00,000 Equity Shares through Fresh Issue.

Classic Electrodes (India) Ltd IPO will close on 26 Aug 2025.

<ul><li>We hold a prominent position in the welding electrodes and Mig Wires market.</li><li>We possess a highly skilled and experienced team with strong engineering expertise. This talent pool allows us to conceptualize and deliver innovative fixture solutions tailored to our clients' needs.</li><li>We are equipped with hi-tech, advanced machinery that enhances our production capabilities and ensures precision in manufacturing.</li><li>PAN India offerings: Our company has such capabilities and experience that it can efficiently cater to clients' requirements across the entire country, ensuring timely deliveries and superior service.</li><li>We possess advanced facilities and a talented pool of resources, enabling us to undertake diverse industrial fabrication projects.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Hanuman Prasad Agarwal</td> <td>650000</td> <td>4.93</td> <td>650000</td> <td>3.62</td> </tr> <tr> <td>2</td> <td>Sushil Kumar Agarwal</td> <td>687500</td> <td>5.21</td> <td>687500</td> <td>3.83</td> </tr> <tr> <td>3</td> <td>Nitesh Agarwal</td> <td>---</td> <td>---</td> <td>---</td> <td>---</td> </tr> <tr> <td>4</td> <td>Sunil Kumar Mittal</td> <td>12500</td> <td>0.09</td> <td>12500</td> <td>0.07</td> </tr> <tr> <td>5</td> <td>Alltime Suplliers Pvt Ltd</td> <td>2902500</td> <td>22</td> <td>2902500</td> <td>16.16</td> </tr> <tr> <td>6</td> <td>Naresh Agarwal</td> <td>36250</td> <td>0.27</td> <td>36250</td> <td>0.2</td> </tr> <tr> <td>7</td> <td>Panchshul Merchants Pvt Ltd</td> <td>2200000</td> <td>16.67</td> <td>2200000</td> <td>12.25</td> </tr> <tr> <td>8</td> <td>Gunnayak Commercial Pvt Ltd</td> <td>2000000</td> <td>15.16</td> <td>2000000</td> <td>11.13</td> </tr> <tr> <td>9</td> <td>Santosh Agarwal</td> <td>517500</td> <td>3.92</td> <td>517500</td> <td>2.88</td> </tr> <tr> <td>10</td> <td>Naresh Kumar Agarwal HUF</td> <td>437500</td> <td>3.32</td> <td>437500</td> <td>2.44</td> </tr> <tr> <td>11</td> <td>Manju Agarwal</td> <td>275000</td> <td>2.08</td> <td>275000</td> <td>1.53</td> </tr> <tr> <td>12</td> <td>Sushil Kumar Agarwal HUF</td> <td>187500</td> <td>1.42</td> <td>187500</td> <td>1.04</td> </tr> <tr> <td>13</td> <td>Sangeeta Agarwal</td> <td>250000</td> <td>1.89</td> <td>250000</td> <td>1.39</td> </tr> <tr> <td>14</td> <td>Hanuman Prasad Agarwal HUF</td> <td>250000</td> <td>1.89</td> <td>250000</td> <td>1.39</td> </tr> <tr> <td>15</td> <td>Manita Mittal</td> <td>237500</td> <td>1.8</td> <td>237500</td> <td>1.32</td> </tr> <tr> <td>16</td> <td>Balaji Electrodes Pvt. Ltd</td> <td>900000</td> <td>6.82</td> <td>900000</td> <td>5</td> </tr> <tr> <td>17</td> <td>Mohta Agencies Pvt. Ltd</td> <td>600000</td> <td>4.55</td> <td>600000</td> <td>3.33</td> </tr> <tr> <td>18</td> <td>Blue Bird Dealers Pvt Ltd</td> <td>750000</td> <td>5.68</td> <td>750000</td> <td>4.17</td> </tr> </tbody> </table>

<ul><li>The Company is increasingly dependent on a domestic market for its sales and any a downturn in it could dent its market share.</li><li>The company operates all its manufacturing facilities from concentrated geographic areas therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around or any disruption in production at, or shutdown of, all its manufacturing units could have material adverse effect on the company's business and financial condition.</li><li>The company has been unable to locate certain of its historical corporate records. The Company was incorporated in 1997 and certain corporate records and documents filed by it with the RoC are not traceable.</li><li>The company requires certain approvals and licenses in the ordinary course of business and the failures to successfully obtain/renew such registrations would adversely affect its operations, results of operations and financial condition.</li><li>The company may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and other proprietary rights.</li><li>The Company, its Directors and its Promoters are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various forums and regulatory authorities. Any adverse decision may make it liable to liabilities/penalties and may adversely affect its reputation, business and financial status.</li><li>The restated examination report by its peer review auditor on Special Purpose Financial Statements has provided a matter of emphasis paragraph for the company has not accounted for interest provisions as per MSMED Act, 2006.</li><li>If there are delays in setting up the proposed expansion or if the costs of setting up and the possible time or cost overruns related to the proposed facilities or the purchase of plant and machinery for the proposed facilities are higher than expected, it could have a material adverse effect on its financial condition, results of operations and growth prospects.</li><li>The company's business and profitability is substantially dependent on the availability and cost of its raw materials and any disruption to the timely and adequate supply or volatility in the prices of raw materials may adversely impact its business, results of operations, cash flows and financial condition.</li><li>Its inability to collect receivables and default in payment from the company's customers could result in the reduction of its profits and affect the company cash flows.</li><li>Any non-compliance or delays in GST Return Filings may expose us to penalties from the regulators.</li><li>Any non-compliance or delays in EPF Return Filings may expose us to penalties from the regulators.</li><li>If the company fails to manage its growth effectively, its may be unable to execute the company's business plan or maintain high levels of service and satisfaction, and its business, results of operations, cash flows and financial condition could be adversely affected.</li><li>Relevant copies of educational qualifications and Experience proof of some of its Directors, Promoters and Senior Management Personnel are not traceable.</li><li>Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.</li><li>The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders for such capital expenditure machinery.</li><li>Most of its Directors does not have any prior experience of being a director in any other listed company in India.</li><li>Its Promoters has extended personal guarantee in connection with some of its debt facilities to the company. There can be no assurance that such personal guarantee will be continued to be provided by its Promoters in future or can be called at any time, affecting the financial arrangements.</li><li>The company is dependent on a few customers for a portion of its revenues. Further the company generally does not enter into longterm arrangements with its customers and any failures to continue the company existing arrangements could adversely affect its business and results of operations.</li><li>Robotics and automation are being deployed in welding industry capital good.</li><li>The shortage or non-availability of power may adversely affect its business, result of operations, financial conditions and cash flows.</li><li>The Company had negative cash flows during certain fiscal years in relation to its operating, investing and financing activities. Sustained negative cash flows in the future would adversely affect its results of operations and financial condition.</li><li>There have been instances of noncompliance in filling statutory forms which were required to be filed as per the reporting requirements with the Registrar of Companies under the Companies Act in the past which may attract penalties.</li><li>The company operates part of its manufacturing facilities that are held by the company on leasehold basis. In the event its lose or are unable to renew such leasehold rights, the company's business, results of operations, financial condition, cash flows and prospects may be adversely affected.</li><li>Its operations are labour intensive and the company manufacturing operations may be subject to unionization, work stoppages or increased labour costs, which could adversely affect its business and results of operations.</li><li>The company operations are subject to environmental and health and safety laws and other government regulations which could result in increased liabilities and increased capital expenditures.</li><li>The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with its Shareholders.</li><li>The average cost of acquisition of Equity Shares for its Promoters may be lower than the Issue Price.</li><li>Restrictions on import of raw materials may impact its business and results of operations.</li><li>There is no monitoring agency appointed by the Company and deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by the Audit Committee.</li><li>There may be problems with the products its manufacture that could result in liability claims against the company, reduced demand for its products and damage to the company reputation.</li><li>The company has incurred borrowings from commercial banks and any non-compliance with repayment and other covenants in its financing agreements could adversely affect the company's business and financial condition.</li><li>Industry sensitive to general economic downturn.</li><li>The company operates in a competitive and fragmented industry with low barriers to entry and may be unable to compete with a range of unorganized sector.</li><li>The company is dependent on third-party transportation providers for the supply of raw materials and delivery of its finished products and any failures to maintain a continuous supply of raw materials or to deliver its products to the company customers in an efficient and reliable manner could have a material and adverse effect on its business, financial condition and results of operations.</li><li>The company engage contract workers for carrying out certain functions of its business operations. In the event of nonavailability of such contract workers at reasonable cost, any adverse regulatory orders or any default on payments to them by the agencies could lead to disruption of the manufacturing facilities and its business operations.</li><li>Our overall margins may fluctuate as a result of the product manufactured by the company.</li><li>Unplanned slowdowns or shutdowns of its manufacturing operations could have an adverse effect on its business, results of operations, financial condition, cash flows and future prospects.</li><li>The company may not have adequate insurance coverage for protecting it against any material hazards.</li><li>Significant failures or disruption of its information technology systems could adversely impact its business, results of operations and financial condition.</li><li>In addition to normal remuneration or benefits and reimbursement of expenses, some of its Directors and key managerial personnel are interested in the Company to the extent of their shareholding in the Company.</li><li>There is no guarantee that its Equity Shares will be listed on the Stock Exchanges in a timely manner or at all.</li><li>The activities carried out at its manufacturing facilities, including any hazardous activity, can cause injury to people or property in certain circumstances.</li><li>Its of total cost of Plant & Machinery worth ? 1079.92 lakhs, the company has not yet placed order for ? 85.31 lakhs of such Plant & Machinery.</li><li>A significant portion of the company revenues are derived from a certain geographical region and any adverse developments affecting such region could have an adverse effect on its business, cash flows, results of operation and financial condition.</li><li>Its business is working capital intensive. Any insufficient cash flows from its operations or inability to borrow to meet the company working capital requirements, it may materially and adversely affect its business and results of operations.</li><li>The company does not has long-term agreements with its suppliers for raw materials and any inability to procure the desired quality, quantity of the company raw materials in a timely manner and at reasonable costs, or at all, may have a negative impact on its business, results of operations, financial condition and cash flows.</li><li>If its fail to manage the company growth effectively, its may be unable to execute the company business plan or maintain high levels of service and satisfaction, and its business, results of operations, cash flows and financial condition could be adversely affected.</li><li>Relevant copies of educational qualifications and Experience proof of some of the company Directors, Promoters and Senior Management Personnel are not traceable.</li><li>Under-utilization of the company manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on the company business, future prospects and future financial performance.</li><li>The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. the company has yet to place orders for such capital expenditure machinery.</li><li>Most of the company Directors does not have any prior experience of being a director in any other listed company in India.</li><li>The company Promoters has extended personal guarantee in connection with some of its debt facilities to the company. There can be no assurance that such personal guarantee will be continued to be provided by the company Promoters in future or can be called at any time, affecting the financial arrangements.</li><li>The company dependent on a few customers for a portion of its revenues. Further the company generally does not enter into longterm arrangements with the company customers and any failure to continue its existing arrangements could adversely affect the business and results of operations.</li><li>Robotics and automation are being deployed in welding industry capital good.</li><li>The shortage or non-availability of power may adversely affect the company business, result of operations, financial conditions and cash flows.</li><li>The Company had negative cash flows during certain fiscal years in relation to the company investing and financing activities. Sustained negative cash flows in the future would adversely affect its results of operations and financial condition.</li><li>There have been instances of noncompliance in filling statutory forms which were required to be filed as per the reporting requirements with the Registrar of Companies under the Companies Act in the past which may attract penalties.</li><li>Its operate part of the company manufacturing facilities that are held by it on leasehold basis. In the event its lose or are unable to renew such leasehold rights, the company business, results of operations, financial condition, cash flows and prospects may be adversely affected.</li><li>The company operations are labour intensive and its manufacturing operations may be subject to unionization, work stoppages or increased labour costs, which could adversely affect the company business and results of operations.</li><li>The company operations are subject to environmental and health and safety laws and other government regulations which could result in increased liabilities and increased capital expenditures.</li><li>The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with its Shareholders.</li><li>The average cost of acquisition of Equity Shares for the company Promoters may be lower than the Issue Price.</li><li>Restrictions on import of raw materials may impact the company business and results of operations.</li><li>There is no monitoring agency appointed by the Company and deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by the Audit Committee.</li><li>There may be problems with the products The company manufacture that could result in liability claims against it, reduced demand for the company products and damage to its reputation.</li><li>The company has incurred borrowings from commercial banks and any non-compliance with repayment and other covenants in its financing agreements could adversely affect the company business and financial condition.</li><li>Industry sensitive to general economic downturn.</li><li>The company operate in a competitive and fragmented industry with low barriers to entry and may be unable to compete with a range of unorganized sector.</li><li>The company has dependent on third-party transportation providers for the supply of raw materials and delivery of its finished products and any failure to maintain a continuous supply of raw materials or to deliver the company products to its customers in an efficient and reliable manner could have a material and adverse effect on the company business, financial condition and results of operations.</li><li>The company engage contract workers for carrying its certain functions of the company business operations. In the event of nonavailability of such contract workers at reasonable cost, any adverse regulatory orders or any default on payments to them by the agencies could lead to disruption of the manufacturing facilities and the company business operations.</li><li>The company overall margins may fluctuate as a result of the product manufactured by it.</li><li>Unplanned slowdowns or shutdowns of the company manufacturing operations could have an adverse effect on its business, results of operations, financial condition, cash flows and future prospects.</li><li>The company may not have adequate insurance coverage for protecting it against any material hazards.</li><li>Significant failure or disruption of the company information technology systems could adversely impact its business, results of operations and financial condition.</li><li>In addition to normal remuneration or benefits and reimbursement of expenses, some of the company Directors and key managerial personnel are interested in its Company to the extent of their shareholding in the Company.</li><li>There is no guarantee that the company Equity Shares will be listed on the Stock Exchanges in a timely manner or at all.</li><li>The activities carried its at the company manufacturing facilities, including any hazardous activity, can cause injury to people or property in certain circumstances.</li></ul>

The Issue type of Classic Electrodes (India) Ltd is Book Building - SME.

The minimum application for shares of Classic Electrodes (India) Ltd is 3200.

The total shares issue of Classic Electrodes (India) Ltd is 4771200.

initial public offer of 47,71,200 equity shares of face value Rs.10/- each (the "Equity Shares") of Classic Electrodes (India) Limited ("the company" or the "issuer") for cash at an issue price of Rs. 87/- per equity share (including a securities premium of Rs. 77/- per equity share) ("issue price"), aggregating to Rs. 41.51 crores (the "issue") of which 2,78,400 equity shares aggregating to Rs. 2.42 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of 44,92,800 equity shares of face value of Rs. 10/- each at an issue price of Rs.87/- per equity share aggregating to Rs. 39.09 crores is hereinafter referred to as the "Net Issue". The issue and the net issue shall constitute 26.56% and 25.01% respectively of the post-issue paid-up equity share capital of the company.