Ferro alloy grade coke producer Nilachal Carbo Metalicks IPO set to hit Dalal Street on September 8

Nilachal Carbo Metalicks IPO

Nilachal Carbo Metalicks, the specialises in producing ferro alloy grade coke, will open its Rs 56.1 crore initial public offering (IPO) for subscription in the coming week, on September 8, and close on September 10.

The company will finalise IPO share allotment by September 11, and list its equity shares on the BSE SME on September 15. It is fixed priced issue with an offer price at Rs 85 per share.

The 66 lakh shares IPO consists of fresh issue of 26 lakh new shares worth Rs 22.1 crore, and an offer-for-sale of 40 lakh shares amounted to Rs 34 crore by Kajal Fashionwear Agency.

Nilachal Carbo Metalicks will spend fresh issue proceeds mainly for installing one coke oven plant for expansion of capacity, and the modernisation of existing plant.

Incorporated in 2003, the Odisha-based company manufactures low ash metallurgical (LAM) coke  for ferro-alloys sector through its plants at Jajpur (Odisha), and Visakhapatnam (Andhra Pradesh) with annual manufacturing capacity of 78,000 metric tonnes per annum (MTPA). It also has a tie-up for contract manufacturing for its product with Om Avi Carbon Resources, using their 24,000 MTPA capacity.

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Nilachal is now proposing to install one more additional battery with 36 ovens to install additional capacity of 34,400 MTPA of LAM coke at Jajpur, taking total capacity to 1,12,400 MTPA.

On the financial front, there has been inconsistency in the recent past years. Net profit for the year 2024-25 dropped 11.4 percent to Rs 14 crore, down from Rs 15.8 crore in the previous year. Revenue in the same period declined 24 percent to Rs 201.5 crore, compared to Rs 265.1 crore.

The merchant banker handling the Nilachal Carbo Metalicks IPO is Sun Capital Advisory Services.