Sturdy subscription response
The Rs 41.51 crore IPO of Basic Electrodes was open for subscription between August 22 and August 26. The difficulty, priced at Rs 87 per share, acquired an amazing response from traders and was subscribed 179.97 occasions total.
The retail portion was booked 158.44 occasions, whereas non-institutional traders (NIIs) confirmed big demand with subscriptions at 356.75 occasions. Certified institutional patrons (QIBs) additionally participated strongly, bidding 84.88 occasions their quota.
The corporate had raised Rs 11.69 crore from anchor traders on August 21, forward of the IPO launch.
IPO construction and targets
Basic Electrodes’ IPO was totally a contemporary subject of 47.71 lakh fairness shares, aggregating to Rs 41.51 crore.The corporate has earmarked Rs 16.6 crore from the proceeds for working capital necessities and Rs 10 crore for reimbursement of borrowings. About Rs 1.47 crore will go in the direction of plant and equipment, whereas the steadiness will probably be used for normal company functions.
Enterprise and financials
Basic Electrodes is engaged within the manufacturing of welding consumables, together with delicate metal electrodes, stainless-steel electrodes, forged iron electrodes, deep penetration electrodes, and MIG wires. The corporate operates two manufacturing items positioned in West Bengal and Haryana.
On the monetary entrance, Basic Electrodes reported whole earnings of Rs 187.9 crore for the 11 months ended February 28, 2025, in contrast with Rs 194.4 crore in FY24 and Rs 151.1 crore in FY23. Revenue after tax stood at Rs 9.57 crore throughout the identical interval, in contrast with Rs 12.3 crore in FY24 and Rs 2.08 crore in FY23.
With the GMP at 20%, Basic Electrodes is anticipated to listing round Rs 104–105 towards the IPO value of Rs 87.
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