Explore the Nilachal Carbo Metalicks Ltd SME IPO opening September 8, 2025. Learn all about the ₹56.1 crore issue size, ₹85 price band, lot size, timeline, expansions, strengths, IPO process, and whether to apply.
Introduction
Set to debut on September 8, 2025, the Nilachal Carbo Metalicks Ltd IPO brings attention to a key player in the ferro-alloy industry. The company specializes in Low-Ash Metallurgical (LAM) Coke, serving major ferro chrome manufacturers. With facilities in Odisha and Visakhapatnam poised for expansion, this SME IPO presents a fascinating opportunity. This blog unpacks everything you need—from issue details and financials to long-term potential and investment FAQs.
IPO Snapshot (H2)
| Parameter | Detail |
|---|---|
| IPO Open Date | 08 Sep 2025 |
| IPO Close Date | 10 Sep 2025 |
| Listing Date | Expected by 15 Sep 2025 |
| Price Band | ₹85 per share |
| Lot Size | 1,600 shares (₹136,000 investment) |
| Total Issue Size | ₹56.10 crore |
| Fresh Issue Amount | ₹22.10 crore |
| Offer-for-Sale (OFS) | ₹34.00 crore |
| Carbon Metallicks Capacity | 60,000 MTPA (Odisha); 18,000 MTPA (leased) |
| Planned Expansion Capacity | +34,400 MTPA at existing Odisha facility |
About Nilachal Carbo Metalicks
Nilachal Carbo Metalicks manufactures LAM Coke—a critical raw material for steel and ferrochrome production. Its plant in Jajpur, Odisha has a capacity of 60,000 metric tons per annum (MTPA), while a leased unit in Visakhapatnam adds 18,000 MTPA. The IPO includes plans to expand its own facility by an additional 34,400 MTPA, supporting future demand.
Utilization of IPO Funds
| Purpose | Amount (₹ Cr) | Percentage (%) |
|---|---|---|
| New Coke Oven Plant | 13.46 | 60.9 |
| Plant Modernisation (Odisha) | 3.03 | 13.7 |
| General Corporate Purposes | 5.61 | 25.4 |
This allocation emphasizes expansion while maintaining operational agility.
Strengths & Growth Catalysts
Strategic Location
Odisha’s proximity to raw materials and major ferro-chrome buyers offers logistical advantages.
Product Portfolio
With LAM coke, nut coke, and blast-furnace grade coke, the company meets varied client needs.
Expansion Potential
Capacity increase from 78,000 MTPA to 112,400 MTPA positions the company to capture rising demand.
Strong Clientele
Nilechal serves top-tier ferro chrome companies—implying stable demand and relationship strength.
Risks & Challenges
- Client Concentration Risk: Heavy reliance on few major buyers.
- Volatile Raw Material Costs: Coke margins are sensitive to raw material fluctuations.
- Cyclical Demand: Ferro-alloy industries often face project-linked demand spikes.
- Dependency on Leased Assets: Visakhapatnam plant is leased, potentially influencing operations.
Why Investors Should Consider This IPO
- SME Listing Advantage: SME IPOs often enjoy listing premiums and attract retail participation.
- Scalable Business Model: Capacity expansion aligns with industrial growth.
- Clear Fund Allocation: Transparency in IPO proceeds instills positive investor confidence.
- Sector Tailwinds: Infrastructure and manufacturing sectors are on growth trajectories.
Investor Caution Points
- Turnaround Margin Risk: Any delays in capacity expansion could impact profitability.
- Market Sentiment: Industry cyclicality could impact near-term stock performance.
Conclusion
Nilachal Carbo Metalicks Ltd’s IPO is a strategic entry into India’s steel infrastructure. With solid expansion plans, operational clarity, and SME listing appeal, it holds promise for long-term gains. However, investors should carefully weigh sector risks and execution timelines before subscribing.
FAQs
Q1: When does the IPO open and close?
A: Opens on 8 September 2025 and closes on 10 September 2025.
Q2: What is the price band and lot size?
A: ₹85 per share; lot size is 1,600 shares (~₹136,000).
Q3: What is the total issue size?
A: ₹56.10 crore—₹22.10 crore fresh issue and ₹34 crore offer-for-sale.
Q4: When will shares be listed?
A: Expected listing on or around 15 September 2025, via BSE-SME.
Q5: How will IPO funds be utilized?
A: Funds allocated to new coke oven plant, plant modernization, and general corporate needs.
Q6: What capacity growth is planned?
A: From 78,000 MTPA to 112,400 MTPA through expansion.
Q7: What are the main business risks?
A: Risks include customer concentration, raw material volatility, and lease dependency.
Disclaimer
This blog is for educational purposes and does not constitute financial advice. Please consult a certified financial advisor before making investment decisions.
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