Karamtara Engineering IPO Date, Review, Price and Key Information

Karamtara Engineering Limited IPO is fully book build issue and total IPO size is ₹1750.00 crores. The offering includes a fresh issue worth ₹1350.00 crores and an offer for sale of ₹400.00 crores.

The dates for the Karamtara Engineering IPO have not been announced yet. The allotment process is expected to be finalized by [.].

The price band for the Karamtara Engineering IPO has not been announced yet. The Karamtara Engineering IPO is scheduled to list on BSE and NSE with a tentative listing date of [.].

Registrar for this IPO is MUFG Intime India Private Limited and lead managers for Karamtara Engineering IPO are JM Financial Limited, ICICI Securities Limited, IIFL Capital Services Limited.

IPO Schedule

IPO Open Date	-
IPO Close Date	-
IPO Allotment Date	-
Refund Initiation	-
Share credit in Demat	-
Listing Date	-

Key Details

Price Band	TBA
Lot Size	TBA
Face Value	₹10 Per Equity Share
Total Issue Size	₹1,750.00 Crores
Fresh Issue	₹1,350.00 Crores
OFS Issue	₹400.00 Crores
Issue Type	Fresh Issue and Offer for Sale
Listing At	BSE & NSE

Share Reservation

Investor Category	Shares Offered
QIB	50%
Retail	35%
NII/HNI	15%

About Karamtara Engineering Limited Company

The overhead transmission line hardware fittings and accessories market is experiencing substantial growth, driven by investments in power infrastructure and renewable energy integration. Utilities are enhancing network reliability and efficiency, boosting demand for high-quality fittings and presenting opportunities for manufacturers.

Karamtara Engineering Limited (KEL), founded in 1996, is a global leader in Engineering and Manufacturing, focused on Renewable Energy. Specializing in the Transmission and Distribution (T&D) sectors, KEL offers products like solar and wind energy components, structural steel, and transmission line fittings. With manufacturing facilities across India, Italy, and soon Saudi Arabia, KEL is committed to sustainable energy solutions and Corporate Social Responsibility. KEL has a significant installed capacity of 567,000 MTPA as of September 30, 2024 and is one of the largest manufacturers of solar mounting structures and trackers in India.

KEL manufactures steel structures and components for solar PV mounting systems, catering to both fixed tilt and tracker applications. Their product offerings include ground and rooftop solar module mounting structures, H-beams, piers, steel piles, torque beams and tubes, transmission tower products (including lattice towers for transmission lines), and fasteners such as bolts, nuts, and washers. Major clients include Gamechange Solar Services India Pvt Ltd, Soltec Energías Renovables, S.L.U., Nextracker US, Mahindra Susten Private Limited, M/S Al Babtain Power & Telecommunic, Waaree Renewable Technologies Ltd, and Elecnor Servicios Y Proyectos S.A.U.

In Fiscal 2024, KEL's revenue from operations, EBITDA, PAT and ROCE were among the highest compared to its solar energy industry peers in India.

KEL serves six of the top 15 EPC companies in the United States (in terms of installed capacity). Revenue from exports grew at a CAGR of 35.10% from ₹76.48 Crore in Fiscal 2022 to ₹139.58 Crore in Fiscal 2024, representing 61.44 % and 57.56% of total revenue from operations during the corresponding periods. KEL is one of the largest players in India in terms of product offerings in the solar sector as of September 30, 2024. The extensive product portfolio includes structures in the solar energy sector (such as solar module mounting structures (“ Solar MMS ”), solar tracker piles and piers and solar torque tubes) and the transmission sector (such as lattice towers for transmission line). In addition, KEL manufacture fasteners (such as bolts, nuts, studs and washers) and OHTL hardware fittings and acces sories (such as insulator string fittings, jumper tubes, suspension clamps and vibration dampers).

Karamtara Engineering Limited Financial Details

Period Ended	30 Sep 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	2,191.44	1,844.56	1,536.9	1,544.05
Revenue	1,414.31	2,427.12	1,601.07	1,246.68
Profit After Tax	58.99	102.65	42.36	12.65
Net Worth	588.46	552.92	450.2	408.85
Reserves and Surplus	582.77	547.14	444.49	402.13
Total Borrowing	538.53	508.51	327.36	427.58

₹ In Crore

Key Performance Indicator

Basic EPS	Return on Net Worth	Net Asset Value	Debt-Equity Ratio	Return on Equity	Return on Capital Employed
3.64	20.47%	19.60	0.84	20.45%	24.15%

Offer Objectives

This document outlines the shareholding pattern, Employee Stock Purchase Scheme (ESPS), and the objects of the upcoming offer. As of the draft prospectus date, Promoters and Promoter Groups held 27.70575 Crore Equity Shares, constituting 94.79% of the total shares. The Public held 1.523774 Crore shares, representing 5.21%. The document lists major shareholders with more than 1% equity, including Inderjeet Tanveer Singh Trust, Inderjeet Rajiv Singh Trust, Tanveer Singh, and Rajiv Singh.

The company has implemented an ESPS Scheme named "Karamtara Engineering Limited – Employee Stock Purchase Scheme 2025" to attract, retain, and reward employees, allowing for a maximum of 250,000 Equity Shares to be issued. As of the prospectus date, 229,140 shares have been allotted under this scheme at ₹310 each. These shares have a lock-in period of 12 months. A consideration of ₹7.103 Crore has been received against the issuance of Equity Shares under ESPS 2025.

The Fresh Issue aims to raise funds to prepay/repay borrowings and for general corporate purposes. Of the gross proceeds from the Fresh Issue of ₹135 Crore, ₹105 Crore is earmarked for debt reduction. Outstanding borrowings as of November 30, 2024, included ₹58.6398 Crore from banks and lending institutions. The company intends to utilize ₹105 Crore from the Net Proceeds for this purpose.