Caliber Mining shares extend rally, jump 18% to hit fresh high after strong listing; analysts advise caution

Shares of newly listed Caliber Mining and Logistics Ltd extended their post-listing rally on Monday, surging 18.12 per cent to hit a fresh high of Rs 624.25. The stock has now climbed 47.23 per cent over its initial public offering (IPO) price of Rs 424 in just two trading sessions after making its market debut on July 24.

The sharp rally comes after the company's IPO received an overwhelming response from investors, reflecting strong demand across all investor categories.

Some market experts, however, advised investors against chasing the stock at current levels after the steep run-up.

Ravi Singh, Chief Research Officer at Master Capital Services, said some profit-booking cannot be ruled out, as investors who secured IPO allotments may look to lock in gains.

"Going forward, the stock's performance will depend on how the company delivers on its business plans. While the long-term outlook appears encouraging, entering at current levels may not be the best approach. Those who missed the IPO can wait for the initial volatility to settle and assess the company's fundamentals before taking fresh exposure. A disciplined approach is likely to offer a better entry point than chasing momentum," Singh said.

Sharing a similar view, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, advised caution after the recent rally while maintaining that the company's long-term growth story remains positive.

Caliber Mining's IPO was open for subscription from July 17 to July 21. The issue was priced in the range of Rs 402-424 per share with a lot size of 35 shares.

The IPO was subscribed 146.64 times overall, attracting nearly 38.45 lakh applications and bids worth around Rs 48,720 crore. The qualified institutional buyers' (QIB) portion was subscribed 240.71 times, while the non-institutional investor (NII) and retail investor segments were subscribed 267.36 times and 41.15 times, respectively.

Incorporated in 2014, Chandrapur-based Caliber Mining is an integrated mining services company focused on coal extraction and logistics. The Maharashtra-based firm provides end-to-end services including coal extraction, overburden removal, coal loading and unloading, road transportation, and rail transportation coordination.