Caliber Mining IPO Opens This Week: Here's A Look At Price Band, Issue Size, GMP And More

Caliber Mining IPO GMP: Caliber Mining and Logistics will open its Rs 450 crore initial public offering (IPO) for subscription on July 17, with the public issue closing on July 21. The book-built issue comprises a fresh issue of Rs 400 crore and an offer for sale (OFS) worth Rs 50 crore by existing promoter shareholders. The company has fixed the price band at Rs 402-424 per share, and the shares are proposed to be listed on the BSE and NSE on July 24, according to the Red Herring Prospectus (RHP).

The Caliber Mining and Logistics IPO consists of 10.61 million equity shares, including a fresh issue of 9.43 million shares and an OFS of 1.18 million shares. Investors can bid in lots of 35 shares, translating into a minimum investment of Rs 14,840 at the upper end of the price band. DAM Capital Advisors is the book-running lead manager to the issue, while KFin Technologies is the registrar.

Caliber Mining And Logistics IPO GMP

No grey market premium (GMP) had emerged for the IPO at the time of writing. Investors should note that GMP is an unofficial market indicator, is not regulated by Securities and Exchange Board of India (Sebi), and should not be the sole basis for making an investment decision.

About Caliber Mining And Logistics

Caliber Mining and Logistics, formerly Caliber Mercantile, provides integrated mining and logistics services, offering coal extraction, overburden removal, transportation, rake loading, rail coordination and coal trading. The company primarily serves subsidiaries of Coal India, including Western Coalfields and Northern Coalfields, while also catering to customers in the iron ore segment. Its mining operations are across Maharashtra, Chhattisgarh and Madhya Pradesh.

The promoter group comprises Mohit Satishkumar Chadda, Anuj Krishanlal Chadda, Manish Krishanlal Chadda, Rahul Roshanlal Chadda and Priya Anuj Chadda, who together held 94.91 per cent of the company's equity before the issue.

Caliber Mining And Logistics IPO Objectives

According to the RHP, the company plans to use Rs 175 crore from the net proceeds to repay some of its loans, helping reduce debt. It will spend another Rs 200 crore to buy new mining machinery and use the remaining funds for general corporate needs.

Caliber Mining And Logistics’ Financial Performance

The company has reported strong growth over the past three financial years. Its consolidated total income increased to Rs 958.18 crore in FY24 from Rs 379.57 crore in FY22, while profit after tax rose to Rs 95.12 crore from Rs 44.31 crore during the same period. Net worth expanded to Rs 294.81 crore as of March 31, 2024, although total borrowings also increased to Rs 725.60 crore from Rs 239.60 crore over the two-year period.

According to the CRISIL industry report commissioned by the company, Caliber Mining has built an integrated business model supported by a fleet of 1,473 mining equipment and logistics vehicles. The report also notes that the company had an order book of around Rs 5,085 crore.

The company's rising debt is one of the key risks. Its debt-to-equity ratio stood at 2.46 in FY24, showing that it has relied heavily on borrowings to support its expansion. However, the CRISIL report said the company is in a "phase of rapid expansion, necessitating higher leverage to fuel its growth. Debt financing is often necessary for companies in such stages of growth, as it provides the capital needed to scale quickly."