Last Updated on January 25, 2025 by IPO Manthan Team
Karamtara Engineering files draft papers with SEBI to raise ₹1,750 crore through an IPO, consisting of a fresh issuance worth ₹1,350 crore and an offer-for-sale of ₹400 crore. Promoters Tanveer Singh and Rajiv Singh will each sell shares worth ₹200 crore in the offer-for-sale.
The company plans to use ₹1,050 crore from the proceeds to reduce its debt, which stood at ₹586.4 crore as of November 2024. The remaining funds will be used for general corporate purposes as part of its financial strategy.
Karamtara Engineering files draft papers at a time when it seeks a post-IPO valuation exceeding ₹10,000 crore. Its strong performance, including a 142.3% rise in FY24 profits to ₹102.7 crore, supports this ambitious valuation.
Exports contributed over 57% of Karamtara’s revenue in FY24, showcasing its global presence. The company is also expanding into wind energy, with a new facility to manufacture tubular towers expected to start operations in FY26.
Recent preferential allotments raised ₹307.17 crore through 98.08 lakh shares at ₹310 per share. Major investors include Singularity Growth Opportunities Fund, Quantum State Investment Fund, and Gaurav Trehan.
Karamtara Engineering files draft papers as it positions itself for growth in renewable energy. Its focus on solar and wind energy, coupled with significant debt reduction plans, underscores its long-term potential.
This IPO aims to strengthen Karamtara’s balance sheet and drive its expansion plans. The company’s promoters, holding 94.79% stake, show strong confidence in its future as it takes this significant step forward.