Karbonsteel Engg raises ₹17 crore from anchor investors; IPO opens Sep 9

Karbonsteel Engineering, an engineering solutions provider, has raised close to ₹17 crore from anchor investors ahead of its upcoming initial public offering (IPO), which is set to open for subscription on September 9.

 

Participants in the anchor round included Subhkam Ventures I, Vikasa India EIF I Fund, Nav Capital VCC, Aarth AIF Growth Fund, Nova Global Opportunities, Evergrow Capital Opportunities Fund, Sunrise Investment Trust, and Invicta Continuum Fund I, among others, according to an exchange filing.

 

Karbonsteel Engineering has allocated slightly over 1.06 million equity shares to 10 investors at a price of ₹159 per share, taking the total transaction value to ₹16.86 crore.

 

"The IPO proceeds will improve efficiency, strengthen our financial position, and enable us to take on larger projects, thereby accelerating growth and creating long-term value for the company," said Shrenik Kirit Shah, chairman and managing director, Karbonsteel Engineering.

 

The company aims to use the raised capital to support capital expenditure for expanding Karbonsteel Engineering’s existing Umbergaon facility, including the construction of new sheds. Additionally, the proceeds will be used for debt repayment, fulfilling working capital needs, and other general corporate purposes.

 

The company’s ₹59.30-crore IPO, which will close on September 11, has a price band set between ₹151 and ₹159 per share. The issue comprises a fresh issue of 30.39 lakh shares worth ₹48.33 crore and an offer for sale of 6.9 lakh shares valued at ₹10.97 crore.

 

Founded in 2011 and headquartered in Mumbai, Karbonsteel Engineering specialises in structural engineering and fabrication services for steel plants, railway bridges, oil and gas facilities, and various other industrial sectors.

 

Financially, the company posted a revenue of ₹273.05 crore and a net profit of ₹14.16 crore for the fiscal year 2025.

 

As of September 7, the grey market premium (GMP) for the Karbonsteel Engineering IPO stands at ₹17, according to IPO Watch data.

 

Seren Capital is the book-running lead manager for the IPO, while Maashitla Securities functions as the issue’s registrar.