CO2 and dry ice maker Punjab Carbonic gets SEBI nod to launch IPO

The IPO comprises 95 lakh shares, including a fresh issue of 60 lakh shares and an offer-for-sale (OFS) of 35 lakh shares by the promoters. Incorporated in 1992, Punjab Carbonic, along with its wholly owned subsidiary Punjab Fusion (PFPL), produces and distributes liquid CO2 and dry ice. It also supplies and installs CO2 recovery units at distilleries. The company caters to several industries, including food and beverages, automobiles, chemicals and fertilisers, healthcare and pharmaceuticals, and aviation.

The company has also ventured into ethanol manufacturing through its subsidiary, Pancarbo Greenfuels (PGPL). At the time of filing its DRHP, Punjab Carbonic had a total of 17 CO2 recovery units across India. Of these, nine operated under the build-own-operate (BOO) model, while the remaining eight followed an asset-light model. Utilisation of proceeds The company plans to utilise Rs 19.66 crore from the net proceeds of the fresh issue to set up two CO2 recovery units in Nellore and Peddapuram, Andhra Pradesh.

The units will have installed capacities of 120 metric tonnes per day (MTPD) and 90 MTPD, respectively. Further, Rs 11.15 crore will be allocated towards purchasing CO2 transportation tankers to strengthen the logistics infrastructure of its CO2 business. The company plans to use Rs 40.61 crore to expand its existing ethanol distillery at Lehri, Punjab, by increasing its ethanol manufacturing capacity by 35 kilolitres per day (KLPD).

Additionally, Rs 8.5 crore will be used for debt repayment, while the remaining proceeds will be allocated towards general corporate purposes. Beeline Capital Advisors has been appointed as the merchant banker to manage the Punjab Carbonic IPO.