Caliber Mining IPO opens today: Is it worth your money? Brokerages weigh in

Caliber Mining IPO: Brokerages remain positive on the initial public offering (IPO) of coal mining and logistics services provider Caliber Mining & Logistics on the back of its strong client base, robust order book, healthy financials and long-term business stability. 

 

With operations spanning Maharashtra, Chhattisgarh, and Madhya Pradesh, the company has many marquee clients, mainly comprising mine-owning subsidiaries of Coal India, including Western Coalfields Limited (WCL) and Northern Coalfields Limited (NCL), thus providing revenue visibility.

 

On the financial front, Caliber Mining's revenue from operations increased significantly from ₹953.1 crore in FY24 to ₹1,678 crore in FY26, while PAT grew from ₹95.9 crore to ₹158.3 crore during the same period, demonstrating robust execution capabilities and strong business momentum. 

 

Caliber Mining IPO Details

Caliber Mining IPO opens for bidding today, July 17 and will be available till Tuesday, July 21, looking to raise ₹450 crore via the initial share sale. The mainboard IPO, third this week, is a mix of fresh issue of ₹400 crore and an offer for sale (OFS) of ₹50 crore. 

 

The company plans to use the fresh proceeds primarily towards deleveraging its balance sheet through the repayment of certain borrowings, funding capital expenditure for machinery acquisition, with the residual amount earmarked for general corporate purposes.  Also Read | Caliber Mining IPO: 10 things that investors should know

 

The price band for Caliber Mining IPO is set at ₹402-424 with a lot size of 35 shares and its multiples thereof. 

 

Ahead of the offer launch, the company garnered ₹134.99 crore from anchor investors. Ashoka India Equity Investment Trust Plc, Carnelian India Amritkaal Fund and Abakkus Four2Eight Opportunities Fund are some of the prominent institutions that participated in the anchor book. 

Caliber Mining IPO GMP

The grey market premium (GMP) for Caliber Mining remains strong, with the trend extending upwards over the last few days. According to websites tracking grey market, Caliber Mining IPO GMP today is ₹105, signalling that shares of the company could debut at ₹529, a premium of almost 25 per cent over the offer price.

 

Investors must note that GMP is subject to change and remains volatile.

Caliber Mining IPO review

Here's what brokerages are recommending for ₹450-crore Caliber Mining IPO:

SBI Securities: Subscribe

Historically, the company has recorded revenue/Ebitda/adjusted PAT CAGR of 32.7 per cent/33.1 per cent/30.6 per cent, respectively over the FY24-FY26 period. Going ahead, the company will look to repay ~₹208 crore of its borrowings, which shall aid in improving its profitability. 

 

Further, the company’s D/E ratio is expected to decline from 1.6x in FY26 to <1.0x post debt repayment in FY27. Caliber also intends to utilise fresh proceeds to fund capex for new commercial vehicles and machines, aimed atscaling the business. At the upper price band of ₹424, the issue is valued at EV/EBITDA multiple of 7.7x based on post-issue capital. We recommend investors to SUBSCRIBE to the issue at the cutoff price. 

Anand Rathi: Subscribe for long term

On the valuation front, based on FY26 earnings, the company is seeking a P/E of 17.5x times, and a post-issue market capitalization of approximately ₹2771.9 crore, making the issue appears to be fully priced. The company reportedly has an order book of around ₹9,500+ crore, providing good revenue visibility over the next few years. Hence we believe that company’s strong order book, strong client base, huge operational capabilities allowing efficient execution of large-scale mining contracts, long-term business stability. 

 

However, leverage remains relatively high post IPO proceeds, leverage should further reduce, additionally large project dependence, execution, and mining-related operational risks remain key considerations. Therefore, we assign a Subscribe for Long Term rating for the issue.

Swastika: Subscribe for medium-to-long term or listing gains

The company reportedly has an order book of around ₹9,500+ crore, providing good revenue visibility over the next few years. The post-issue P/E is around 17–18x FY26 earnings, which is acceptable compared with listed mining-services peers. RoNW of 24.38% is the highest among listed peers, reflecting excellent capital utilization.

 

Around 89 per cent of the IPO is a fresh issue, with proceeds aimed at business growth rather than promoter exit. Almost the entire top-line comes from just two subsidiaries of Coal India Limited. Subscribe for medium-to-long term investment or to capture potential listing gains.

KC Securities: Apply for long-term

The company has established a diversified and strong client base, which provides healthy revenue visibility. The company currently operates with a relatively high leverage profile. However, a significant portion of the IPO proceeds is proposed to be utilised towards the repayment of borrowings, which is expected to substantially strengthen its balance sheet. 

 

Post debt repayment, the Debt-to-Equity ratio is expected to reduce from approximately 1.6x in FY26 to below 1.0x (estimated at 0.7x–0.8x in FY27), leading to lower finance costs and improved profitability and return ratios. Additionally, the fresh issue proceeds will be utilized for the acquisition of new commercial vehicles and mining equipment, enhancing operational capacity and supporting future growth opportunities. 

 

At the upper price band, the issue is valued at 28.2x FY26 EPS, which appears fairly valued compared to its listed peers, considering its strong growth prospects, improving financial position, and healthy order book. 

 

Considering the company's robust operating performance, strong order pipeline, planned deleveraging, and long-term growth potential hence, we recommend investors "APPLY" to the issue with a long-term investment horizon.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.