Karamtara Engineering, the Mumbai-based renewable energy and transmission line products manufacturer, has fixed the price band at ₹241-254 per share for its upcoming ₹875-crore IPO. According to reports from The Economic Times, the public issue will open on September 9 and close on September 11, while the anchor book will open for a day on September 8. The company is expected to finalise the IPO share allotment by September 15 and is likely to make its market debut on September 17. The IPO is being managed by JM Financial Ltd., ICICI Securities Ltd., IIFL Capital Services Ltd. as book-running lead managers, with MUFG Intime India Pvt. Ltd. serving as the registrar. As per recent reports, the IPO has a lot size of 59 shares with a minimum investment of ₹14,986 for retail investors, and will be listed on both BSE and NSE. The issue is structured as a mix of ₹675 crore fresh issue and ₹200 crore offer-for-sale by promoters Tanveer Singh and Rajiv Singh. The company's market cap at the upper price band is estimated at ₹8,174.3 crore, with the IPO showing a strong Grey Market Premium (GMP) of around ₹68, indicating an estimated listing price of ₹322 per share - a 26.77% premium over the issue price.
The company has demonstrated strong institutional interest by mobilising ₹262.5 crore from 15 institutional investors through the anchor book on September 8. According to reports from The Economic Times, Karamtara Engineering allocated 1.03 crore equity shares at ₹254 per share through the anchor book, with the price including a share premium of ₹244 per share at the upper end of the IPO price band. The anchor book saw participation from domestic mutual funds, insurance companies, alternative investment funds and foreign institutional investors. Of the total anchor allocation, 46.85 lakh shares worth ₹119 crore were allotted to five domestic mutual fund houses including HDFC Mutual Fund, Nippon India Small Cap Fund, Mirae Asset ELSS Tax Saver Fund, Motilal Oswal Manufacturing Fund, Motilal Oswal Infrastructure Fund and TrustMF Small Cap Fund. Insurance companies including HDFC Life Insurance Company, SBI Life Insurance Company, Singularity Equity Fund I, Authum Investment and Infrastructure, Elm Park Fund, Societe Generale - ODI, Duro India Opportunities Fund Pte, Susquehanna Pacific Pty and Edelweiss Life Insurance Company each picked up 7.87 lakh shares for nearly ₹20 crore. The anchor investor list includes HDFC Mutual Fund, Nippon India Mutual Fund, Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, HDFC Life Insurance Company and SBI Life Insurance among other prominent institutional participants.
The company is raising ₹675 crore through a fresh issue of shares, while promoters Tanveer Singh and his brother Rajiv Singh will sell shares worth ₹200 crore through an offer-for-sale. As reported by Moneycontrol, Karamtara intends to utilise ₹600 crore of the net fresh issue proceeds to repay certain debt, with the remaining funds earmarked for general corporate purposes. The public issue size has been halved to ₹875 crore from the ₹1,750 crore planned in the draft papers filed in January 2025, with SEBI approving its IPO papers in June 2025. As of July 2026, the company had total standalone outstanding borrowings of ₹1,344.4 crore from banks and lending institutions, along with outstanding acceptances pursuant to letters of credit amounting to ₹735.1 crore. The debt-to-equity ratio is expected to decline to 0.2x post repayment from 0.8x in FY26. The IPO comprises a fresh issue of 2.66 crore equity shares worth ₹675 crore and an offer-for-sale of 78.74 lakh shares worth ₹200 crore, with the company planning to use ₹600 crore from the fresh issue proceeds to repay borrowings.
Karamtara Engineering has demonstrated robust financial growth with revenue, EBITDA and PAT CAGRs of 33.3%, 37.6% and 49.3% respectively between FY24 and FY26. The company reported total income of ₹4,316.36 crore in FY26, up from ₹3,165.36 crore in FY25 and ₹2,427.12 crore in FY24. Profit after tax rose 64% year-on-year to ₹228.75 crore in FY26, compared with ₹139.33 crore in FY25 and ₹102.65 crore in FY24. SBI Securities has recommended investors subscribe to the issue for the long term, citing Karamtara's strong position in solar mounting structures and tracker components, backward integration and healthy financial performance. The brokerage noted that Karamtara is India's largest integrated manufacturer of solar mounting structures and tracker components by installed capacity as of FY26. Anand Rathi has also recommended a "Subscribe - Long Term" rating, citing the company's backward-integrated manufacturing model, diversified product portfolio and established export presence. BP Equities has recommended a "Subscribe" rating, citing the company's strong financial growth, healthy return ratios, diversified product portfolio and backward integration. SBICAP Securities has also recommended investors "Subscribe" to the issue for the long term, noting that at the upper price band of ₹254 per share, the IPO is valued at a FY26 price-to-earnings (P/E) multiple of 35.7x, based on the post-issue capital.
Karamtara Engineering manufactures a comprehensive portfolio of engineering steel products, including solar module mounting structures, tracker components, transmission line towers, fasteners and overhead transmission line hardware fittings and accessories. As reported by The Economic Times, the company positions itself as a one-stop supplier for solar structures and transmission-related products. The company has also forayed into the wind energy sector by commencing production of angular and tubular towers for wind turbines, with operations expected to commence in the first quarter of Fiscal 2026. It intends to enter the battery energy storage systems (BESS) business through its wholly owned subsidiary, Karamtara Green Energy, which was incorporated in May 2025, and plans to set up manufacturing facilities for prefabricated engineered building (PEB) structures. The company has international presence with exports to more than 50 countries across North America, Europe, Asia, Africa, Australia and Latin America, and as of September 2024, employs 530 permanent employees with an additional 412 factory workers in their payroll. The company is expanding its manufacturing footprint with new facilities in Bhachau, Gujarat, and Saudi Arabia, and is among the significant exporters of solar structures and tracker components to North America. Its key competitive advantage is its backward-integrated manufacturing model, with in-house galvanising facilities with a capacity of 2,58,000 MTPA, which it claims is the largest in India's solar energy sector.
