Karamtara Engineering gets Sebi nod for ₹1,750 cr IPO; check key details

Karamtara Engineering plans to raise ₹1,750 crore through a combination of fresh issue and offer for sale

Karamtama Engineering IPO: Karamtara Engineering has received final observations from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO), the company said on Tuesday.

 

The company had filed its draft red herring prospectus in January 2025. It plans to raise ₹1,750 crore through a combination of fresh issue and offer for sale (OFS).

  Several investors have already put money into Karamtara through a preferential share allotment. These include Jagdish Naresh Master, Utpal Hemendra Sheth, Singularity Growth Opportunities Fund, and Gaurav Trehan among others.

 

Last month, the company raised ₹105.7 crore from several investors including celebrities like Ranbir Kapoor, Aamir Khan, Karan Johar, Jasprit Bumrah and Rohit Sharma.  ALSO READ | Oswal Pumps sets IPO price band at ₹584-614; check key details here

 

Karamtara Engineering IPO details

The total size of the offer consists of a fresh issue of equity shares valued at ₹1,350 crore and OFS by selling shareholders amounting to ₹400 crore. Tanveer Singh, the chairman of the board of directors, and Rajiv Singh, the joint managing director, are the selling shareholders.

 

According to the draft red herring prospectus (DRHP), the company plans to use ₹1,050 crore from the net fresh issue proceeds for prepayment, repayment and/or payment to its lenders towards borrowings and Acceptances, in part or full. The remaining funds will be used for general corporate purposes. 

 

MUFG Intime India, formerly Link Intime India, is the issue registrar. JM Financial, ICICI Securities and IIFL Capital are the book-running lead managers.   ALSO READ | Sacheerome IPO Day 2 update: Subscription rises 7x, GMP steady at 30%

About Karamtara Engineering

Karamtara Engineering is a backward-integrated manufacturer of products for renewable energy and transmission line sectors. According to a F&S report, it is the largest and leading manufacturer of solar mounting structures and tracker components in India in terms of installed capacity in fiscal 2023-24 (FY24) and the six months ended September 30, 2024.

 

The company has a diverse product portfolio including structures and fasteners in the solar energy and transmission sectors, and overhead transmission line (OHTL) hardware fittings and accessories. It exports to over 50 countries cumulatively as of September 30, 2024, across North America, Europe, Asia, Africa, Australia and Latin America.