Nilachal Carbo Metalicks Ltd., a coke manufacturing company based in Odisha, has launched its SME IPO on the BSE SME platform. The IPO has drawn attention due to its large offering size, fixed price structure, and the company’s steady financial growth in recent years. With the issue opening on September 8, 2025, and closing on September 11, 2025, investors are keen to analyze whether this IPO presents an opportunity for long-term value creation.
This detailed report covers:
- IPO structure and timelines
- Company profile & industry outlook
- Financial performance (FY 2023–25)
- Valuation & peer comparison
- Grey Market Premium (GMP) trends
- Risks and opportunities for retail investors
📊 Nilachal Carbo Metalicks Ltd. IPO Overview
| Feature | Details |
|---|---|
| Issue Size | ₹56.10 crore |
| Issue Type | Fixed Price IPO |
| Issue Price | ₹85 per share |
| Face Value | ₹10 |
| Fresh Issue | 26 lakh shares (~₹22.1 crore) |
| Offer for Sale (OFS) | 40 lakh shares (~₹34 crore) |
| Total Shares Offered | 66 lakh shares |
| Lot Size | 1,600 shares |
| Minimum Investment | ₹2,72,000 (2 lots for retail investors) |
| Retail Quota | 47.52% |
| NII Quota | 47.47% |
| Market Maker | 5.02% |
| IPO Open Date | September 8, 2025 |
| IPO Close Date | September 11, 2025 |
| Allotment Date | September 12, 2025 |
| Tentative Listing Date | September 16, 2025 (BSE SME) |
🏭 Company Background
Founded in 2003, Nilachal Carbo Metalicks Ltd. specializes in Low Ash Metallurgical (LAM) Coke production, an essential raw material used in:
- Ferro-alloy industries
- Steel manufacturing
- Foundries
The company’s manufacturing facility is located in Jajpur, Odisha, equipped with three non-recovery, bee-hive type coke oven batteries. With an installed capacity of 60,000 MTPA, Nilachal serves multiple industrial clients in Eastern and Central India.
Promoters:
- Mr. Bibhu Datta Panda
- Mrs. Geeta Rani Panda
💰 Financial Performance Snapshot
| Metric | FY 2023 | FY 2024 | FY 2025 |
| Revenue (₹ Cr) | 266.2 | 265.1 | 201.5 |
| Profit After Tax (₹ Cr) | 14.82 | 15.82 | 14.02 |
| Net Worth (₹ Cr) | 48.46 | 64.28 | 78.30 |
| Total Debt (₹ Cr) | 18.84 | 26.14 | 23.55 |
| Return on Equity (RoE) (%) | 30.6% | 24.6% | 17.9% |
Analysis:
- Revenue growth has remained flat to declining, mainly due to raw material price fluctuations.
- Profit margins are stable, showing efficient cost control.
- The company has a moderate debt level but is investing in expansion.
- Declining RoE in FY25 signals pressure on earnings scalability.
🎯 Objectives of the IPO
The proceeds from the fresh issue of ₹22.1 crore will be utilized for:
- Setting up a new coke oven plant to expand capacity
- Modernization of existing facilities
- General corporate purposes
The OFS portion (₹34 crore) will not benefit the company directly as it represents promoters’ partial exit.
📊 Valuation Analysis
- At the issue price of ₹85 per share, the IPO values the company at a P/E ratio of ~13–14x FY25 earnings.
- Peer comparison: Similar SME metallurgical companies are trading at 12x–15x P/E.
- The valuation is fair, neither too cheap nor too expensive.
⚖️ Strengths of Nilachal Carbo Metalicks
- Established Industry Presence: Operating for 20+ years with consistent clientele.
- Strategic Location: Proximity to steel and alloy clusters in Odisha and Jharkhand.
- Capacity Expansion Plan: Fresh issue to fund new coke oven plant.
- Stable Profitability: Despite industry cyclicality, the company maintained profitability.
⚠️ Risks & Concerns
- High Minimum Investment: Retail investors need ₹2.72 lakh minimum, making it less accessible.
- Industry Cyclicality: Coke and steel industries are highly dependent on global demand.
- Declining RoE: Indicates possible earnings stagnation.
- OFS Component: Large OFS (₹34 crore) means limited fresh capital for company use.
- SME Listing Risk: SME IPOs often have lower liquidity and higher volatility.
📉 Market Outlook
The demand for coke is directly linked to steel production and infrastructure growth. With India’s steel industry projected to grow steadily over the next decade, Nilachal Carbo Metalicks stands to benefit. However, rising competition and raw material dependency remain major concerns.
📝 Should You Invest?
- For Long-term Investors: The IPO offers exposure to a niche metallurgical segment. Expansion plans and steady margins are positives. However, the high ticket size and limited SME liquidity may not suit small investors.
- For Listing Gains: With a modest GMP of 12–15%, short-term listing benefits appear limited compared to high-demand IPOs.
- Risk Appetite: Only suitable for investors who can afford the higher minimum investment and are comfortable with SME volatility.
📌 Key Takeaways
- IPO size: ₹56.10 crore (₹22.1 cr fresh + ₹34 cr OFS)
- Price: ₹85 per share
- Lot size: 1,600 shares (₹2.72 lakh minimum)
- Listing: BSE SME, September 16, 2025
- GMP: ₹10–12 premium (~12–15% gains expected)
- Financials: Stable profitability, moderate debt, declining RoE
- Verdict: Neutral to cautiously positive; suitable for HNIs, risk-taking investors.
Subscription
| Investor | 08 Sep 2025 | 09 Sep 2025 | 10 Sep 2025 |
|---|---|---|---|
| Anchor | 0 | ||
| QIB | 0 | ||
| Non-Institutional | 1.86 | ||
| BNII | 0 | ||
| SNII | 0 | ||
| Retail | 0.71 | ||
| Total | 1.29 |
GMP Trend:
| Date | GMP |
|---|---|
| 08 Sep 2025 | ₹0.00(0.00%) |
| 09 Sep 2025 | |
| 10 Sep 2025 |
It should be noted that IPO GMP is subject to extreme volatility, so an investment decision based solely on Patel Retail IPO GMP will prove risky. Therefore, before to investing, consider all factors and make the right investment decision whether to invest in Patel Retail IPO or not.
How to Check IPO Allotment Status:
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NSE Website
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- Click on the below allotment status check button.
- Select Company Name.
- Enter your PAN Number, Application Number or DP Client ID (Anyone).
- Click on Search.
BSE Webiste
To check IPO allotment status, follow the steps below:
- Click on the below allotment status check button.
- Select Company Name.
- Enter your PAN Number, Application Number or DP Client ID (Anyone).
- Click on Search.
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- ⚠️ IPO (Initial Public Offerings)
- IPO details, issue size, subscription data, and allotment status shared here are based on publicly available information from company filings, stock exchanges, and merchant bankers.
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- ⚠️ GMP (Grey Market Premium)
- Grey Market Premium (GMP) is an unofficial and unregulated indicator of expected IPO listing price.
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