Karamtara Engineering Files DRHP for ₹1,750 Crore IPO

IPO Details and Fund Utilisation

Mumbai-based Karamtara Engineering has filed draft papers with SEBI, planning to raise ₹1,750 crore through an initial public offering (IPO). The offering will comprise a fresh issuance of equity shares worth ₹1,350 crore and an offer-for-sale (OFS) of ₹400 crore by its promoters, Tanveer Singh and Rajiv Singh, each selling ₹200 crore worth of shares.

The company aims to utilise ₹1,050 crore from the fresh issue proceeds to reduce its debt, with the remainder allocated for general corporate purposes. As of November 2024, Karamtara’s total outstanding borrowings stand at ₹586.4 crore, with additional outstanding acceptances of ₹733.6 crore via letters of credit.

In January 2025, the company raised ₹307.17 crore through a preferential allotment of 98.08 lakh shares at ₹310 per share, attracting prominent investors such as Quantum State Investment Fund, Ananta Capital Venture Fund, and Singularity Growth Opportunities Fund.

Business Overview and Growth Prospects

Karamtara Engineering is a leading backward-integrated manufacturer catering to the renewable energy and transmission sectors. With an installed production capacity of 5.67 lakh metric tonnes per annum (MTPA) and 4.8 lakh pieces as of September 2024, the company provides solar energy structures, fasteners, and overhead transmission line fittings.

Exports contributed 57.56% to its FY24 revenue, with the company serving international clients, including original equipment manufacturers (OEMs), engineering, procurement, and construction (EPC) companies, and independent power producers (IPPs). Additionally, Karamtara is entering the wind energy market by establishing a facility for manufacturing tubular towers, set to begin operations in Q1 FY26.

The company reported robust financial performance in FY24, with profit surging 142.3% to ₹102.7 crore and revenue rising by 51.5% to ₹2,425.2 crore compared to FY23. For H1 FY25, profit increased by 51.6% to ₹59 crore, while revenue grew by 34.2% to ₹1,413.1 crore.

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