Caliber Mining shares slip over 3% after decent debut. Should you buy, sell or hold?

Caliber Mining share price made a decent debut on the bourses today. On NSE, Caliber Mining share price was listed at ₹500.25 per share, 17.98% higher than the issue price of ₹424. On BSE, Caliber Mining share price today was listed at ₹504 apiece, up 18.87% than the issue price.

However, Caliber Mining shares slipped more than 3% after making a decent stock market debut. On the BSE, the stock was trading at ₹488.80, down 3.02%, though it remained 15.28% above its issue price. On the NSE, the stock was quoted at ₹485.75, down 2.64% on the day, while still trading at a 14.91% premium to its IPO price.

The Caliber Mining and Logistics IPO witnessed robust investor demand, with the public issue being subscribed 146.64 times on the final day of bidding on Tuesday.

The non-institutional investors (NII) portion was subscribed 267.36 times, while the Qualified Institutional Buyers (QIBs) category garnered 240.71 times subscription. The retail investors' quota was booked 41.15 times. The Caliber Mining IPO was offered at a price band of ₹402-424 per share.

Incorporated in 2014, Caliber Mining and Logistics Ltd provides integrated mining services, including overburden removal, coal extraction, and coal logistics. The company operates across Maharashtra, Madhya Pradesh, and Chhattisgarh, offering end-to-end mining and logistics solutions. While it does not own any mines, it undertakes mining operations and logistics services on behalf of its clients.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said Caliber Mining & Logistics made a strong stock market debut, listing at an 18% premium to its IPO price, reflecting robust investor confidence and the strong response the public issue received.

Nyati said some profit booking cannot be ruled out in the near term following the sharp listing gains. She advised fresh investors to avoid chasing the stock at current levels and instead wait for a correction or a period of consolidation before considering fresh positions.

For investors who were allotted shares in the IPO, Nyati recommended continuing to hold the stock from a medium- to long-term perspective, while maintaining a closing-basis stop-loss at ₹475.

The IPO comprises a fresh issue of 94 lakh equity shares aggregating ₹400 crore and an offer for sale (OFS) of 12 lakh equity shares worth ₹50 crore by existing shareholders. The selling shareholders in the OFS include promoters Mohit Satishkumar Chadda, Anuj Krishanlal Chadda, Manish Krishanlal Chadda, and Rahul Roshanlal Chadda.

The company intends to utilise the net proceeds from the fresh issue to strengthen its balance sheet and expand its manufacturing capabilities. It has earmarked ₹175 crore for the repayment or prepayment of certain borrowings and ₹200 crore towards capital expenditure, mainly for the acquisition of machinery. The balance funds will be deployed for general corporate purposes.

DAM Capital Advisors Ltd. is acting as the book-running lead manager to the issue, while KFin Technologies Ltd. has been appointed as the registrar to the IPO.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.

Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, ...