Nilachal Carbo Metalicks IPO is a fixed-price public cum offering of ₹56.10 crore (fresh issue ₹22.10 cr + OFS ₹34.00 cr). It opens for subscription from 8–10 September 2025, with allotment tentatively on 12 September and listing on BSE SME around 15 September 2025. The issue aims to fund capacity expansion via a new coke oven plant and modernization of its existing facilities in Odisha.
2. Detailed IPO Overview
- Issue Type: Fixed-price Public Cum OFS on BSE SME
- Total Issue Size: ₹56.10 crore (6,600,000 equity shares)
- Fresh Issue: 2,600,000 shares (~₹22.10 cr)
- Offer for Sale: 4,000,000 shares via promoter—Kajal Fashionwear Agency Pvt. Ltd (~₹34.00 cr)
- Market Maker Reservation: 331,200 shares (~₹2.82 cr)
- Net Offer to Public: 6,268,800 shares (~₹53.28 cr)
- Offer Price: ₹85 per share (FV ₹10)
- Lot Size: 1,600 shares;
- Retail Min Investment: ₹1,36,000
- Retail Max (2 lots): ₹2,72,000
3. IPO Timeline
- Open: 8 September 2025
- Close: 10 September 2025
- Allotment (expected): ~12 September 2025
- Credit to Demat: ~15 September 2025
- Tentative Listing: ~15–16 September 2025 on BSE SME
4. Company Overview & Use of Funds
Nilachal Carbo Metalicks Ltd, incorporated in 2003, manufactures Low Ash Metallurgical Coke (LAM Coke) with plants at:
- Baramana, Jajpur (Odisha)—60,000 MTPA
- Leased facility in Visakhapatnam—18,000 MTPA
- Contract tie-up—24,000 MTPA (Om Avi Carbon)
Uses of Fresh IPO Proceeds:
- New coke oven plant installation — ₹13.46 cr (34,400 MTPA expansion)
- Modernization of existing plant — ₹3.03 cr
- General corporate purposes — ₹5.61 cr
5. Financial Highlights (Restated – FY23 to FY25)
- Revenue (₹ crore): FY23 – 268.46 | FY24 – 266.95 | FY25 – 202.79 (some decline)
- PAT: FY23 – ₹14.82 cr | FY24 – ₹15.82 cr | FY25 – ₹14.02 cr (modest dip)
- EBITDA (FY25): ₹27.13 cr
- Net Worth (FY25): ₹78.3 cr
- EPS (FY25): ₹6.28
- RoE: ~17.9%; RoCE: ~22.7%
- NAV/share (FY25): ₹35.07
6. Valuation at ₹85
- P/E: ₹85 / ₹6.28 ≈ 13.5×
- P/B (using NAV ₹35.07): ≈ 2.4×
Peer comparison shows significantly higher P/E in similar FMCG/SME sectors, making this IPO appear fairly valued.
7. Strengths & Risks
Strengths
- Strategically located near Paradip and Visakhapatnam ports (logistics advantage)
- Diverse production setup (owned, leased, contract) with ability to scale quickly
- Quality leadership in LAM Coke (Low Ash, Low Phosphorus)
- Strong by-product (Coke Fines) demand and proprietary logistics fleet
Risks
- Revenue dip in FY25 raises questions on demand/cyclicality
- Commodity price fluctuations (coal/coke) may squeeze margins
- Offer-for-Sale reduces fresh capital infusion; dilution minimal but pricing sentiment matters
- SME listing liquidity risk; large lot size may limit exit flexibility
8. FAQs (Google-style)
Q1: When does the IPO open and close?
8–10 September 2025.
Q2: What is the issue price and lot size?
₹85 fixed price; lot size 1,600 shares; minimum ₹1,36,000.
Q3: When will allotment and listing happen?
Allotment ~12 September 2025; listing ~15 September 2025.
Q4: Who is offering shares in OFS?
Kajal Fashionwear Agency Pvt. Ltd.
Q5: How will the fresh proceeds be used?
Capacity expansion, modernization, and general corporate purposes.
Q6: What are the FY25 earnings?
Revenue ₹202.79 cr, PAT ₹14.02 cr, EPS ₹6.28.
Q7: What is the valuation?
P/E ~13.5×; P/B ~2.4×.
Q8: What are the main risks?
Demand volatility, SME liquidity, commodity price risk.
Official IPO Links
- Company Website: Nilachal Carbo Metalicks Ltd
- Registrar for Allotment Status: KFin Tech – IPO Status Portal
- Listing Exchange (BSE SME): BSE India SME Segment
- SEBI / RHP Document: Available through SEBI filing channels
- tredingmarket.com
The Nilachal Carbo Metalicks IPO presents a credible opportunity to invest in a niche metallurgical coke manufacturer with modern capacities, strategic port proximity, and consistent product quality. The valuation (P/E ~13.5× and P/B ~2.4×) is realistic, especially for an SME offering. While FY25 performance dipped slightly, the expansion through the fresh issue and modernization push puts the company on a growth trajectory. That said, investors must account for SMEs’ liquidity constraints, commodity price exposure, and cyclical demand. If you’re comfortable with such risk-return dynamics and seek industrial exposure, this IPO merits consideration.