Karamtara Engineering hits 10% upper limit on debut; up 38% from IPO price

Karamtara Engineering shares made a strong debut on the bourses today, yielding a listing gain of 26 per cent to the IPO investors.

Karamtara Engineering share price: Shares of Karamtara Engineering, a manufacturer of engineering steel products for renewable energy and power transmission sectors, made a strong debut on the bourses today, yielding a listing gain of nearly 26 per cent for IPO investors.

 

The stock opened at ₹320, marking a 25.98 per cent premium over the issue price of ₹254 on both the NSE and BSE. 

 

Later, the stock jumped 10 per cent to hit the upper circuit at ₹351.95 on BSE.

 

Karamtara Engineering's market capitalisation stood at ₹10,298.33 crore at the time of listing, according to BSE data.

 

Karamtara Engineering’s listing was above grey market expectations, which had indicated around 16 per cent listing gains. Karamtara Engineering stock: Buy or book profit?  Shivani Nyati, head of wealth at Swastika Investmart, said that the strong debut validates the renewable-energy and solar-structures leadership story, backed by healthy growth, margins, and IPO-led deleveraging. However, premium valuation caps near-term upside. "Short-term investors should consider booking gains on strength, while long-term growth investors can hold through corrections tied to sector capex cycles. Keep a stop loss at ₹290," she added.

 

 

Karamtara Engineering IPO details  Karamtara Engineering's ₹875 crore IPO opened for public subscription on September 9 and concluded on September 11. The price band was fixed at ₹241-254 per share, valuing the company at around ₹7,790-8,174 crore. 

 

The IPO, which comprised a fresh issue of shares worth ₹675 crore and an offer for sale (OFS) of up to ₹200 crore, was subscribed 62.6 times.  Ahead of the IPO, Karamtara Engineering had collected ₹262.50 crore from anchor investors. The company allotted 1.03 crore equity shares to anchor investors at ₹254 per share, which included HDFC Mutual Fund, Nippon India Mutual Fund, Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, HDFC Life Insurance Company and SBI Life Insurance.

 

 Karamtara Engineering manufactures transmission line towers, solar structures and tracker components, wind energy structures, structural steel profiles and fasteners for domestic and overseas markets. 

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