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 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:
The IPO structure allows the company to raise new capital while also providing an exit opportunity for existing shareholders.
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.
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.
A major portion of the IPO proceeds will be allocated to setting up two new CO₂ recovery units:
These facilities will significantly increase the company’s ability to capture and process carbon dioxide emissions, aligning with its sustainability-focused business model.
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.
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.
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.
The company has over three decades of experience in the industrial gas sector. Its operations include:
Punjab Carbonic operates its CO₂ recovery units using a mix of build-own-operate (BOO) and asset-light models, allowing flexibility and scalability.
Punjab Carbonic operates through its subsidiaries to diversify its business operations:
These subsidiaries enable the company to expand into related sectors while maintaining a strong core business.
Punjab Carbonic has demonstrated steady financial growth in recent years.
The strong profitability and consistent revenue growth indicate a stable business model with potential for further expansion.
The IPO process is being managed by:
These entities will oversee the execution and administration of the public offering.
The carbon capture and industrial gas sector is witnessing increasing demand due to:
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.