IPO Details
Issue Date
--
Investment/lot
--
Price Range
--
Lot Size
--
IPO Size
N/A
Schedule of Karamtara Engineering Ltd IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Karamtara Engineering Ltd IPO
The initial public offering (IPO) of Karamtara Engineering Ltd consists of a fresh issue of equity shares with a face value of ₹10 each, aggregating up to ₹1,350 crore. The offer for sale includes equity shares with a face value of ₹10 each, aggregating up to ₹400 crore.
The total offer size, combining both components, is up to ₹1,750 crores. Promoters involved in the offering include Tanveer Singh, Rajiv Singh, Inderjeet Singh, Inderjeet Tanveer Singh Trust and Inderjeet Rajiv Singh Trust. The IPO will open on a date TBA and close on a date TBA. The allotment of shares will take place on TBA and the credit of shares will take place on TBA.
Objectives of Karamtara Engineering Ltd IPO
The money raised from this issue, after deducting related expenses, will be used for the following purposes:
- Funding prepayment, repayment, or payment obligations to lenders.
- General corporate purposes.
Karamtara Engineering Ltd IPO Valuation
Karamtara Engineering Ltd IPO Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Investors (NIIs) | Not less than 15% of the net offer |
Retail-individual Investors (RIIs) | Not less than 35% of the net offer |
Growth in renewable energy
The global energy landscape is witnessing a major shift toward renewable sources. Renewable energy capacity grew at a CAGR of 10.4% between 2018 and 2023 and is expected to grow at a CAGR of 13.6% from 2023 to 2028. This steady growth reflects the rising demand for clean energy and supportive government policies.
India's energy transition and GDP trends
India is moving away from coal-based power toward renewable energy. By Fiscal 2030, the country's total power generation capacity is projected to reach 751 GW, with 500 GW coming from renewable sources. Of this, 280 GW is expected to be generated from solar power.
India also remains the fastest-growing major economy, with 8.2% GDP growth in 2023, driven by stable domestic demand, investments, and favourable demographics. It is on track to become a $5 trillion economy by Fiscal 2026.
Karamtara Engineering Ltd Information
Karamtara Engineering Ltd, located in Mumbai, India, makes products for renewable energy and transmission lines. The company offers a wide range of products, acting as a one-stop shop for solar structures, including fixed-tilt and trackers. It also provides lattice structures for transmission lines, fasteners for solar, wind, transmission, and industrial sectors, as well as overhead transmission line hardware and accessories. Additionally, the company is entering the wind energy market by setting up a facility to make tubular towers for wind turbines, expected to start operating in the first quarter of Fiscal 2026.
Karamtara Engineering Ltd Strengths
Largest integrated manufacturer in India
Karamtara is the largest integrated manufacturer in India for solar mounting structures and tracker components, with the highest installed capacity as of Fiscal 2024. Its backward integration capabilities enhance efficiency by producing essential steel structures and maintaining in-house galvanising facilities, reducing costs and ensuring quality control. These advantages improve delivery speed, optimise working capital, and lower dependency on external suppliers.
Diverse product portfolio for cross-selling
Karamtara offers a wide range of products, including solar structures (fixed-tilt and trackers), lattice towers for transmission lines, fasteners for multiple sectors, and OHTL hardware fittings. This diverse portfolio provides cross-selling opportunities, improving customer retention and revenue growth. Its solar products alone contributed over 80% of revenue in Fiscal 2024, reflecting strong market demand.
Global footprint and strong customer relationships
Karamtara has a significant international presence, exporting to over 50 countries, with notable growth in North America, Europe, and Latin America. Export revenues grew at a CAGR of 35.10% from Fiscal 2022 to 2024. The company maintains high customer retention with minimal rejection rates, highlighting its quality standards. Its recognition as a "Four Star Export House" underscores its contribution to foreign trade.
Risks of Karamtara Engineering Ltd. IPO
Geographic and operational concentration risks
The company relies heavily on its manufacturing facilities, primarily located in Maharashtra, which contributed over 98% of revenue in recent years. This geographic concentration makes operations vulnerable to local disruptions such as natural disasters, regulatory changes, and infrastructure issues. Additionally, facility-specific risks like power failures, labor conflicts, and property disputes may significantly affect production.
Sector-specific dependency
A substantial portion of revenue (over 80%) comes from the solar energy industry. Any downturn in this sector, due to fluctuating consumer demand, policy changes, or economic conditions, could adversely impact revenue and profitability. Dependency on a single industry heightens the risk of revenue volatility.
Customer concentration risk
The top 10 customers accounted for over 63% of total revenue in Fiscal 2024. Dependence on a few key clients increases the risk of revenue fluctuations due to order cancellations, financial instability, or loss of business to competitors. Short-term, non-exclusive contracts further exacerbate this risk, potentially impacting long-term financial stability.
All Financial Information about Karamtara Engineering Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Name of Company | Revenue from Operations in ₹ crores | EPS (Basic) | NAV per share (₹) | P/E |
|---|---|---|---|---|
Karamtara Engineering Limited | 2,425.15 | 3.64 | 19.60 | NA |
Inox Wind Limited | 1,743.23 | (1.56) | 50.61 | NA |
KP Green Engineering Limited | 349.04 | 9.70 | 2,381.68 | 50.41 |
Premier Energies Limited | 3,143.79 | 6.93 | 14.63 | 213.61 |
Waaree Energies Limited | 11,397.60 | 48.05 | 154.95 | 55.36 |
Suzlon Energy Ltd | 6,496.84 | 0.50 | (1.95) | 113.76 |
Anchor Investing Bidding Date: TBA
IPO Registrar and Book Running Lead Manager
Registrar - MUFG Intime India Private Limited
Book Running Lead Managers – JM Financial, ICICI Securities, IIFL Capital
Business Model
Karamtara Engineering Ltd is a fully backward-integrated manufacturer catering to the renewable energy and transmission line sectors. As of Fiscal 2024 and the six months ended September 30, 2024, the company stands as India's largest manufacturer of solar mounting structures and tracker components by installed capacity.
The company specialises in structures and fasteners for the solar energy and transmission sectors, along with overhead transmission line (OHTL) hardware fittings and accessories. Expanding its renewable energy footprint, the company is establishing a manufacturing facility for tubular towers used in wind turbines, with operations set to begin in the first quarter of Fiscal 2026.
With one of India's most extensive product offerings in the solar sector, Karamtara's portfolio includes solar module mounting structures (Solar MMS), solar tracker piles and piers, solar torque tubes, and lattice towers for transmission lines. Additionally, it manufactures fasteners such as bolts, nuts, studs, and washers, along with OHTL hardware fittings including insulator string fittings, jumper tubes, suspension clamps, and vibration dampers.
Karamtara Engineering Ltd Growth Trajectory
Over the last few years, the company's revenue from operations has shown significant growth, increasing from ₹1,244.80 crore in FY22 to ₹2,425.15 crores in FY24. EBITDA margin has also improved remarkably, rising from 10.43% in FY22 to 10.84% in FY24.
Karamtara Engineering Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 2,427.11 | 1,601.07 | 1,246.67 |
Profit Before Tax (in ₹ crores) | 137.43 | 46.59 | 22.92 |
Profit After Tax (in ₹ crores) | 102.65 | 42.36 | 12.64 |
EPS | 3.64 | 1.50 | 0.45 |
EBITDA (in ₹ crores) | 262.93 | 153.61 | 129.81 |
Karamtara Engineering Ltd Balance Sheet
| Parameters | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 137.43 | 46.59 | 22.92 |
Net Cash generated from (used in) Operating Activities (in ₹ crores) | 40.02 | 240.73 | 181.54 |
Net Cash from (used in) Investing Activities (in ₹ crores) | (123.79) | (61.04) | (55.97) |
Net Cash generated from (used in) Financing Activities (in ₹ crores) | 88.05 | (180.02) | (129.35) |
Cash and Cash Equivalents (in ₹ crores) | 9.87 | 5.59 | 5.92 |
How to check allotment status of Karamtara Engineering Ltd IPO?
- Visit the Registrar's Website
Go to the official website of MUFG Intime India Private Limited, the registrar for this IPO. MUFG Intime India’s website has a page for checking IPO allotment status. On this page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then click the 'Submit' button. Your allotment status will be displayed.
- Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.
On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose ‘Karamtara Engineering Ltd’ in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search'
Your ‘Karamtara Engineering Ltd’ allotment status will be displayed.
- Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to ‘Karamtara Engineering Ltd’ allotment status.
Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit'. Your ‘Karamtara Engineering Ltd. IPO’ bid and allotment details will be displayed.
How to apply for Karamtara Engineering Ltd IPO?
Here are the steps to apply for Karamtara Engineering Ltd IPO:
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Karamtara Engineering Ltd IPO FAQs
What is the Karamtara Engineering Ltd IPO?
Karamtara Engineering Ltd., based in Mumbai, manufactures products for renewable energy and transmission lines. It offers solar structures (fixed-tilt and trackers), lattice structures, fasteners, and OHTL hardware. The company is also venturing into wind energy with a tubular tower facility set to begin in Fiscal 2026. Its IPO includes a fresh issue and an offer for sale.
Is Karamtara Engineering Ltd IPO coming?
Yes, Karamtara Engineering Ltd. is expected to come up with its IPO soon.
Who is the Chairman of Karamtara Engineering Ltd.?
Tanveer Singh is the chairman of Karamtara Engineering Ltd.
What is a lot of size of shares of the Karamtara Engineering Ltd IPO?
The company hasn’t given any information on the lot size yet.
From where can I read more about the Karamtara Engineering Ltd IPO?
You may read more about the Karamtara Engineering Ltd and its IPO from the company’s red draft herring prospectus (DRHP) here.
