Nilachal Carbo Metalicks Limited, established in 2003, has steadily built a niche for itself in the manufacturing of FAP grade Ultra & Low Phosphorus – Low Ash Metallurgical Coke. Over the years, the company has earned recognition as one of the leading suppliers of high-quality coke products, primarily catering to Ferro Chrome manufacturers. With strong industry relationships, a robust supply chain network, and a focus on specialised coke manufacturing, Nilachal Carbo Metalicks has developed a reliable brand identity in the coal and coke industry.

The company is now entering the capital market with its Initial Public Offering (IPO). The issue is a Fixed Price Issue of ₹56.1 crores, comprising a fresh issue of 26 lakh equity shares worth ₹22.1 crores and an Offer for Sale (OFS) of 40 lakh shares worth ₹34 crores. The IPO opens for subscription on 8 September 2025 and closes on 10 September 2025. The allotment of shares is expected to be finalised on 11 September 2025, and the shares are set to be listed on 15 September 2025 on the BSE SME platform.

IPO Price and Lot Size

The issue price of the IPO has been fixed at ₹85 per equity share. At this price, the market capitalisation of Nilachal Carbo Metalicks will stand at ₹211.88 crores. The lot size is 1,600 shares, with a minimum application requirement of two lots (3,200 shares), amounting to a minimum investment of ₹2,72,000 for retail investors.

The IPO is being managed by SUN Capital Advisory Services Private Limited as the Book Running Lead Manager, with KFin Technologies Limited as the Registrar to the Issue. NNM Securities Private Limited is acting as the Market Maker for the IPO.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Nilachal Carbo Metalicks IPO is currently reported at ₹0, indicating that no premium is being traded in the unorganised grey market. This suggests that investors may not expect any significant listing gains from this IPO. It is important to note that GMP is unofficial and unregulated, serving only as an indicative measure of demand and not as a reliable predictor of listing price.

Subscription Status

On the first day of subscription (8 September 2025), the IPO was subscribed 0.65 times by 12:30 PM. The subscription data indicates lukewarm interest from investors during the early hours of bidding. Real-time subscription updates can be checked on the BSE IPO subscription page for accurate information.

Allotment and Listing Process

The allotment of shares is expected on 11 September 2025 (Thursday). Investors can check their allotment status by:

• Visiting the registrar’s website.

• Selecting Nilachal Carbo Metalicks IPO from the dropdown menu.

• Entering their application number, PAN, or DP Client ID.

The shares will be credited to successful investors’ demat accounts before the listing date of 15 September 2025.

Objectives of the IPO

The proceeds from the fresh issue will be used for the following purposes:

1. ₹1,346.00 lakh for capital expenditure on a new Coke Oven Plant to expand production capacity.

2. ₹303.31 lakh for modernisation of the existing plant.

3. ₹267.46 lakh for general corporate purposes.

These objectives highlight the company’s focus on expansion and modernisation to strengthen production efficiency and capacity.

Company Background and Promoter Leadership

The company is led by Mr. Bibhu Datta Panda, the Promoter and Managing Director, who has over 20 years of experience in the coal and coke industry. Under his leadership, Nilachal Carbo Metalicks has achieved steady growth and built lasting client relationships. His strategic vision and industry knowledge have been instrumental in driving the company’s operations and expansion.

Financial Performance

The company has maintained stable financial performance over the last three fiscals:

• Revenue from Operations: ₹20,278.89 lakhs (FY25), ₹26,712.65 lakhs (FY24), ₹26,845.98 lakhs (FY23).

• EBITDA: ₹2,712.97 lakhs (FY25), ₹2,498.05 lakhs (FY24), ₹2,231.98 lakhs (FY23).

• Profit After Tax (PAT): ₹1,401.57 lakhs (FY25), ₹1,581.81 lakhs (FY24), ₹1,481.68 lakhs (FY23).

This performance indicates steady profitability, though revenues have slightly declined in FY25 compared to FY24 and FY23.

Valuation and Ratios

Key performance metrics show:

• Pre-issue EPS: ₹6.28, Post-issue EPS: ₹5.62

• Pre-issue P/E: 13.54x, Post-issue P/E: 15.12x

• Industry P/E: 264x

• ROCE: 22.74%, ROE: 17.90%, RoNW: 17.90%

The IPO appears fairly priced, but the high industry P/E ratio suggests that peers are valued more aggressively.

Risk Factors and Outlook

While Nilachal Carbo Metalicks has strong industry experience and steady profits, there are some concerns:

• Revenue decline in FY25 compared to earlier fiscals.

• No grey market premium, indicating limited investor enthusiasm.

• Dependence on cyclical demand from Ferro Chrome and allied industries.

Recommendation

Given the company’s financial stability, expansion plans, and promoter experience, Nilachal Carbo Metalicks IPO has moderate fundamentals. However, with GMP at ₹0 and no expected listing gains, market experts suggest that investors may avoid this IPO for short-term gains. Long-term investors with a belief in the coal and coke sector growth may consider it cautiously.

The Upcoming IPOs in this week and coming weeks are Karbonsteel Engineering, Taurian MPS, L. T. Elevator, Galaxy Medicare, Airfloa Rail Technology, Dev Accelerator, Jay Ambe Supermarkets, Urban Company, Shringar House of Mangalsutra, .

The Current active IPO are Nilachal Carbo Metalicks, Krupalu Metals, Vashishtha Luxury Fashion, Sharvaya Metals, Vigor Plast India, Austere Systems.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.