Caliber Mining IPO draws 23.7x demand on day two
Investor demand for Caliber Mining and Logistics' ₹450 crore IPO has surged, driven by a strong order book and attractive valuations, though heavy reliance on Coal India subsidiaries remains a key risk.
Caliber Mining and Logistics Ltd saw its initial public offering subscribed 23.73 times by the end of its second day of bidding, a sharp acceleration from 1.21 times on day one. The company received bids for 18,59,55,595 shares against 78,35,821 shares on offer. The surge was largely driven by non-institutional investors, whose portion was booked 71.21 times, while retail individual investors subscribed 16.13 times their allocated quota.
The Indian mining services contractor has set a price band of ₹402 to ₹424 per equity share, with a minimum lot size of 35 shares. The offering comprises a fresh issue of 94 lakh shares aggregating ₹400 crore, alongside a ₹50 crore offer for sale by four promoter shareholders. Ahead of the public issue, the company secured ₹135 crore from anchor investors.
Five domestic brokerages, including Angel One, BP Equities and Swastika Investmart, have recommended subscribing to the issue for medium- to long-term gains. The consensus rests on a massive order book of ₹9,550.9 crore, which underpins future revenue visibility. At the upper price band, the stock is valued at 14.4 to 17.5 times estimated fiscal 2026 earnings and 3.5 times price-to-book, representing a discount to listed peers alongside an industry-leading 24.38% return on net worth.
However, market professionals will note significant structural risks that could pressure growth. Nearly 89% of the company's revenue is tied to Western Coalfields and Northern Coalfields, both subsidiaries of the state-run Coal India. Analysts have flagged this customer concentration as a primary vulnerability, alongside execution risks inherent to contract mining and a leverage profile expected to remain relatively high post-IPO.
Founded in 2014, Caliber Mining provides end-to-end contract mining and logistics services across three Indian states without owning the underlying mining assets. The company intends to use the bulk of the fresh issue proceeds to repay ₹175 crore in debt and deploy ₹200 crore toward machinery capital expenditure. The IPO closes on 21 July, with shares expected to begin trading on the BSE and NSE on 24 July, while a grey market premium of ₹94 implies a 22.17% listing premium over the top end of the price band.
