The ₹875 crore Karamtara Engineering IPO witnessed exceptional investor interest on its final day of subscription, with the issue subscribed 62.63 times as of Friday afternoon. According to Business Standard, the IPO received bids for 159.17 crore shares against 2.54 crore shares on offer, marking a significant increase from the previous day's 33.12 times subscription. The retail individual investors (RIIs) portion was subscribed 10.41 times, with non-institutional investors' category receiving bids for 37.42 times the 72.61 lakh shares offered. The qualified institutional buyers (QIBs) portion received bids for 70 times the 72.61 lakh shares offered, demonstrating overwhelming institutional demand. The price band has been fixed at ₹241 to ₹254 per share, giving the company an implied valuation of ₹7,790 crore to ₹8,174 crore. The company's maiden public offering will remain open for subscription until September 11, 2026, with equity shares proposed to be listed on both BSE and NSE on September 17. The allotment is expected to be finalised on September 15, with JM Financial Ltd. serving as the book-running lead manager and MUFG Intime India Pvt. Ltd. acting as the registrar.
With 10 mainboard IPOs available for subscription on September 9, 2026, market experts are taking a selective approach amid the crowded primary market. According to The Economic Times, Karamtara Engineering emerges as the strongest consensus pick among both listing gain seekers and long-term investors, while Rentomojo also finds favor for its growth potential. However, experts differ on the risk-reward profile of the remaining four issues, with Santosh Meena from Swastika Investmart highlighting that Karamtara Engineering's ₹600 crore fresh issue dedicated to debt reduction will boost future net margins. Gorakshakar from The Economic Times identifies Steamhouse India and Karamtara Engineering as the two IPOs offering the best investment prospects among the 10 issues.
SBI Securities has issued a 'Subscribe' rating for Karamtara Engineering, noting that the company is a backwards-integrated manufacturer of products for renewable energy and transmission lines. As per Business Standard, SBI Securities highlights that KEL is the largest integrated manufacturer in terms of installed capacity in India for solar mounting structures and tracker components in FY26. The brokerage emphasizes that the company serves various customers across international markets such as North America, Europe, Asia, Africa, Australia and Latin America, with exports comprising 41% of revenue from operations in FY26. At the upper price band of ₹254, SBI Securities values the issue at FY26 price-to-equity multiple of 35.7 times based on post-issue capital, recommending investors to 'Subscribe' for a long-term investment horizon. Anand Rathi has also recommended subscribing to the issue, highlighting the company's diversified product portfolio and export presence.
According to Business Standard, Karamtara Engineering reported a consolidated net profit of ₹228.76 crore and sales of ₹4,311.98 crore for the twelve months ended on March 31, 2026. The company's consolidated revenue from operations grew at a compound annual growth rate of 33.34% to ₹4,316.36 crore in fiscal 2026 from ₹2,425.15 crore in fiscal 2024. The company reported a 64% year-on-year rise in FY26 profit to ₹228.75 crore, with profit after tax margin of 5.30%. The company's marquee client relationships are highly sticky, with average revenue per solar customer expanding from ₹41.31 crore in Fiscal 2024 to ₹52.40 crore in Fiscal 2026. Solar products accounted for 78.9% of its FY26 revenue, while exports contributed 40.5%. The company's grey market premium (GMP) is currently signalling a listing pop of 26% at ₹321, indicating strong investor confidence in the green energy sector leader.
According to Moneycontrol, Karamtara Engineering shares are trading at a grey market premium of ₹65, indicating a potential 25.6% gain over the upper price band of ₹254 per share. Based on the latest GMP, the shares could list around ₹323 apiece. The IPO comprises a fresh issue of ₹675 crore and an Offer For Sale (OFS) of ₹200 crore, with the remaining proceeds of ₹600 crore to be utilised for general corporate purposes. The lot size is 59 shares, requiring a minimum investment of ₹14,986 for retail investors at the upper price band. The company successfully collected ₹262.50 crore from anchor investors including HDFC Mutual Fund, Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, HDFC Life Insurance Company, Nippon India Mutual Fund, and SBI Life Insurance, among others. As per The Economic Times, LCC Projects leads the listing-gain race with a 31% gain and 1.64 times subscription, while Steamhouse India ranks third with a 24.69% gain and 0.6 times subscription.
According to The Economic Times, Gorakshakar recommends Karamtara Engineering and Steamhouse India as the two strongest IPOs among the 10 issues. He highlights that Karamtara Engineering benefits directly from massive domestic and global capital expenditure cycles toward electrical grid modernization and renewable energy evacuation infrastructure. On Steamhouse India, he notes it's a pioneer in the 'community boiler' system in India, providing centralized pipeline distribution of steam and industrial gases, creating high customer stickiness and strong entry barriers. However, he expresses caution on Manipal Payment & Identity Solutions, stating the combination of earnings, revenue growth and issue structure is the weakest among the IPOs under consideration, with profit falling to ₹253.46 crore from ₹282.21 crore and revenue compounding at low single digits over three years.
