Nilachal Carbo Metalicks Limited, established in 2003, has carved out a specialised space in the manufacturing of FAP grade Ultra & Low Phosphorus – Low Ash Metallurgical Coke. With decades of expertise, the company has become one of the leading manufacturers and suppliers of high-quality coke products, maintaining robust supply chain relationships with all major Ferro Chrome manufacturers in India. Its strong reputation for quality, reliability, and consistency makes it a trusted partner in the metallurgical industry.

The company is now stepping into the capital market with its Initial Public Offering (IPO), giving investors an opportunity to participate in its growth journey.

IPO Structure and Size

The Nilachal Carbo Metalicks IPO is a Fixed Price Issue with a total size of ₹56.1 crore. The issue comprises:

• A Fresh Issue of 26 lakh equity shares worth ₹22.1 crore.

• An Offer for Sale (OFS) of 40 lakh equity shares worth ₹34 crore.

This combination allows the company to raise new funds while also providing an exit opportunity for existing shareholders.

Key IPO Dates

• Opening Date: September 8, 2025

• Closing Date: September 10, 2025

• Allotment Finalisation Date: September 11, 2025 (Thursday)

• Tentative Listing Date on BSE SME: September 15, 2025 (Monday)

The registrar for the issue is KFin Technologies Limited, and the Book Running Lead Manager is Sun Capital Advisory Services Private Limited. The sole Market Maker for the issue is NNM Securities Private Limited.

Price, Market Cap, and Lot Size

The issue price has been fixed at ₹85 per equity share. At this price, the market capitalisation of Nilachal Carbo Metalicks will stand at approximately ₹211.88 crore.

The lot size for the IPO is 1,600 shares, and retail investors must apply for at least 2 lots, meaning a minimum application of 3,200 shares. This requires an investment of ₹2,72,000.

This relatively high minimum investment may restrict participation to high net-worth retail investors and HNIs rather than small retail participants.

Grey Market Premium (GMP)

As of September 4, 2025, the Grey Market Premium (GMP) for Nilachal Carbo Metalicks IPO is reported at ₹0, meaning there is currently no premium or discount being quoted in the grey market.

While GMP is often used as an informal indicator of expected listing performance, it should not be considered a reliable measure since it is entirely based on unregulated demand and supply in unofficial markets. The final listing performance will depend more on subscription demand, fundamentals, and market conditions.

Subscription Status

On the first day of the IPO (September 8, 2025), by 12:30 PM, the IPO was subscribed 0.65 times. This indicates a moderate start, and investors will be keenly watching how the subscription figures evolve in the Qualified Institutional Buyers (QIB), Non-Institutional Investors (NII), and Retail segments over the next two days.

Live subscription updates can be checked directly on the BSE SME platform during market hours.

Allotment and How to Check Status

The IPO allotment will be finalised on September 11, 2025. Investors can check their allotment status using the following steps:

1. Visit the KFin Technologies Limited website (registrar).

2. Select Nilachal Carbo Metalicks IPO from the dropdown menu.

3. Enter your Application Number, PAN, or DP Client ID.

4. Submit the details to check allotment status.

Successful allottees will see shares credited into their demat accounts by September 15, 2025, ahead of the listing.

Objectives of the IPO

The company plans to utilise the Net Proceeds from the Fresh Issue towards the following objectives:

1. Funding Capital Expenditure – Approximately ₹1,346 lakh will be allocated to installing a new Coke Oven Plant, enabling capacity expansion.

2. Modernisation of Existing Plant – About ₹303.31 lakh will be used to upgrade current facilities, improving efficiency and productivity.

3. General Corporate Purposes – Around ₹267.46 lakh will be set aside to meet various corporate expenses and contingencies.

These investments are expected to strengthen Nilachal Carbo Metalicks’ manufacturing capabilities, enhance operational efficiency, and support long-term growth.

Company Strengths

Nilachal Carbo Metalicks comes with several competitive strengths that could appeal to investors:

• Established presence since 2003, with expertise in metallurgical coke production.

• Specialisation in Ultra & Low Phosphorus – Low Ash Coke, which is in high demand from Ferro Chrome manufacturers.

• Long-standing supply chain relationships with key industry players.

• Strategic focus on quality and production efficiency, ensuring customer loyalty.

• Capacity expansion plans backed by IPO proceeds, signalling future growth potential.

Risks and Concerns

At the same time, investors should evaluate certain risks:

• High capital intensity – Metallurgical coke production requires significant investments in plants and machinery.

• Dependence on steel and ferroalloy industries, which are cyclical in nature and can be affected by global economic slowdowns.

• Environmental regulations – Coke production is closely monitored due to environmental concerns, which may lead to compliance costs.

• High minimum investment requirement, making the IPO less accessible to small retail investors.

Conclusion

The Nilachal Carbo Metalicks IPO offers an opportunity to invest in a company with a solid track record in metallurgical coke production, supported by strong industry linkages and expansion plans. While the Grey Market Premium currently reflects no premium, the true demand will be revealed during the subscription window.

The company’s capacity expansion and modernisation plans funded by the IPO proceeds could enhance long-term growth prospects. However, investors must weigh these opportunities against industry cyclicality, environmental factors, and the relatively high entry cost for retail investors.

For those with a long-term outlook and higher risk appetite, Nilachal Carbo Metalicks IPO could be an interesting addition to their portfolio.

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.