Karamtara Engineering Receives SEBI Approval for INR 1,750 Crore IPO

Karamtara Engineering has secured the go-ahead from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO), paving the way for the company to raise INR 1,750 crore through a combination of fresh equity issuance and an offer for sale (OFS).

The IPO filing was initially submitted in January this year. According to the final structure, INR 1,350 crore will be raised via fresh issue of equity shares, while INR 400 crore will come through OFS by existing shareholders, including Chairman Tanveer Singh and Joint Managing Director Rajiv Singh. The company plans to utilise INR 1,050 crore from the fresh issue proceeds towards prepayment or repayment of borrowings and Acceptances, either fully or partially. The remainder will be allocated for general corporate purposes.

Karamtara has already attracted a mix of institutional and individual investors ahead of the IPO through preferential allotments. These include names such as Jagdish Naresh Master, Utpal Hemendra Sheth, Singularity Growth Opportunities Fund, and private equity investor Gaurav Trehan. Additionally, in a notable endorsement of the brand, celebrities including Ranbir Kapoor, Aamir Khan, Karan Johar, Jasprit Bumrah and Rohit Sharma invested INR 105.7 crore collectively in May. MUFG Intime India (formerly Link Intime India) is the registrar to the issue, while JM Financial, ICICI Securities, and IIFL Capital have been appointed as the book-running lead managers.

 As per a report by Frost & Sullivan, Karamtara was India’s largest manufacturer of solar mounting structures and tracker components by installed capacity in FY 2023-24 and the first half of FY 2024-25.

Its product portfolio includes solar and transmission sector structures, fasteners, and overhead transmission line (OHTL) hardware fittings and accessories. Karamtara has a strong global presence, exporting to more than 50 countries across North America, Europe, Asia, Africa, Australia and Latin America.