Upcoming IPO: Punjab Carbonic has filed a DRHP with SEBI to raise funds through a public issue

Punjab Carbonic Limited has taken a significant step toward entering the capital markets by filing its Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India. The proposed IPO aims to raise funds for expansion, infrastructure development, and debt reduction, marking a new phase in the company’s growth journey.

Punjab Carbonic Files DRHP for IPO Launch

Punjab Carbonic Limited has officially filed its DRHP on March 31, 2026, with SEBI, BSE Limited, and National Stock Exchange of India Limited.

The public offering will consist of up to 95,00,000 equity shares with a face value of ₹10 each. This includes:

• Fresh issue: Up to 60,00,000 equity shares
• Offer for Sale (OFS): Up to 35,00,000 equity shares

The IPO structure allows the company to raise new capital while also providing an exit opportunity for existing shareholders.

Objectives of the IPO

The funds raised through the IPO will be utilised for multiple strategic initiatives aimed at strengthening the company’s operational capacity and expanding its footprint.

Key Utilisation of Funds

• Setting up two CO₂ recovery units (CRUs) in Andhra Pradesh

• Expanding logistics infrastructure through tanker acquisition

• Investment in subsidiary Pancarbo Greenfuels Private Limited

• Expansion of ethanol production capacity

• Repayment or prepayment of outstanding borrowings

• General corporate purposes

These initiatives are expected to enhance operational efficiency and support long-term growth.

Expansion Plans: CO₂ Recovery Units

A major portion of the IPO proceeds will be allocated to setting up two new CO₂ recovery units:

• Nellore, Andhra Pradesh: 120 MTPD capacity
• Peddapuram, Andhra Pradesh: 90 MTPD capacity

These facilities will significantly increase the company’s ability to capture and process carbon dioxide emissions, aligning with its sustainability-focused business model.

Strengthening Logistics Infrastructure

Punjab Carbonic also plans to invest in expanding its logistics capabilities. The company intends to purchase additional CO₂ transportation tankers to support its growing operations.

Currently, it operates a fleet of 55 self-owned tankers, enabling efficient distribution across India. Strengthening this network will improve delivery timelines and operational scalability.

Focus on Ethanol Production Expansion

Another key area of investment is the expansion of the company’s ethanol distillery located in Village Lehri, Punjab.

The company plans to increase its ethanol production capacity by 35 KLPD (kilolitres per day). This move aligns with India’s broader push toward biofuels and renewable energy solutions.

Business Model: Driving a Circular Carbon Economy

Punjab Carbonic operates an integrated business model focused on carbon capture and utilisation. The company converts fermentation-based CO₂ emissions into high-purity, commercially viable products such as liquid CO₂ and dry ice.

This approach not only reduces environmental impact but also creates value from industrial emissions, contributing to a circular carbon economy.

Operations and Infrastructure

The company has over three decades of experience in the industrial gas sector. Its operations include:

• Manufacturing and supply of liquid CO₂ and dry ice
• Design and installation of CO₂ recovery infrastructure
• Distribution through a pan-India network

Punjab Carbonic operates its CO₂ recovery units using a mix of build-own-operate (BOO) and asset-light models, allowing flexibility and scalability.

Subsidiaries and Business Segments

Punjab Carbonic operates through its subsidiaries to diversify its business operations:

• Punjab Fusion Private Limited (PFPL): Engaged in CO₂ and dry ice production and distribution
• Pancarbo Greenfuels Private Limited (PGPL): Focused on ethanol manufacturing

These subsidiaries enable the company to expand into related sectors while maintaining a strong core business.

Financial Performance Overview

Punjab Carbonic has demonstrated steady financial growth in recent years.

FY25 Financial Highlights

• Revenue from operations: ₹48,817.39 lakh
• EBITDA: ₹4,823.38 lakh
• Profit After Tax (PAT): ₹2,621.44 lakh

H1 FY26 Performance

• Revenue from operations: ₹27,939.52 lakh
• EBITDA: ₹3,724.98 lakh
• PAT: ₹2,618.52 lakh

The strong profitability and consistent revenue growth indicate a stable business model with potential for further expansion.

IPO Management and Key Stakeholders

The IPO process is being managed by:

• Beeline Capital Advisors Private Limited as the Book Running Lead Manager
• KFin Technologies Limited as the Registrar to the issue

These entities will oversee the execution and administration of the public offering.

Industry Outlook and Growth Potential

The carbon capture and industrial gas sector is witnessing increasing demand due to:

• Growing focus on sustainability
• Regulatory pressure to reduce emissions
• Expansion of industrial and manufacturing activities

Punjab Carbonic is well-positioned to capitalise on these trends, given its expertise and established infrastructure.

Conclusion: A Promising Entry into Capital Markets

Punjab Carbonic’s IPO marks an important milestone in its growth journey. With a clear focus on expansion, sustainability, and operational efficiency, the company aims to strengthen its position in the industrial gas and carbon capture sector.

If successfully executed, the IPO could provide the financial backing needed to scale operations and tap into emerging opportunities in the clean energy and industrial solutions space.