The ₹875-crore initial public offering (IPO) of Karamtara Engineering Ltd. will open for subscription on Wednesday, September 9, and close on Friday, September 11.
Karamtara Engineering has raised ₹262.50 crore from anchor investors ahead of its IPO. The company allotted 1.03 crore shares to 15 anchor investors at ₹254 per share, the upper end of the IPO price band. The price includes a share premium of ₹244 per share.
The anchor book saw participation from domestic mutual funds, insurance companies, alternative investment funds and foreign institutional investors.
Karamtara Engineering IPO: Should you subscribe?
SBI Securities: Subscribe for long term
SBI Securities has recommended investors subscribe to the issue for the long term, citing Karamtara Engineering’s strong position in solar mounting structures and tracker components, backward integration and healthy financial performance.
The brokerage said Karamtara is India’s largest integrated manufacturer of solar mounting structures and tracker components by installed capacity as of FY26. The company has substantial in-house capabilities, including galvanising capacity of 276,800 MTPA and rolling mill furnaces for producing structural steel products used in the solar and transmission sectors.
The company recorded revenue, EBITDA and PAT CAGRs of 33.3%, 37.6% and 49.3%, respectively, between FY24 and FY26.
SBI Securities expects India’s installed solar power generation capacity to grow at a CAGR of 19.7% between FY26 and FY31E. Karamtara plans to use ₹600 crore of the fresh issue proceeds to repay borrowings, which would further reduce leverage. Its debt-to-equity ratio is expected to decline to 0.2x post repayment from 0.8x in FY26.
At the upper price band of ₹254, the issue is valued at 35.7x FY26 P/E based on post-issue capital. SBI Securities noted that there are no directly comparable listed peers for Karamtara Engineering.
Anand Rathi: Subscribe for long term
Anand Rathi has also recommended a “Subscribe – Long Term” rating, citing Karamtara’s backward-integrated manufacturing model, diversified product portfolio and established export presence.
Established in 1996, Karamtara manufactures solar module mounting structures, tracker piles and piers, torque tubes, transmission line towers, wind towers, fasteners, structural steel profiles and overhead transmission line hardware fittings.
The company operates manufacturing facilities in India and Italy and serves original equipment manufacturers (OEMs), engineering, procurement and construction (EPC) companies and independent power producers (IPPs) across more than 50 countries.
Anand Rathi said the company’s backward integration, including in-house steel rolling and galvanising capabilities, gives it greater control over raw material conversion, quality, lead times and manufacturing costs.
Solar products accounted for 78.9% of FY26 revenue, while exports contributed 40.5%. The company also plans to establish manufacturing capabilities in Saudi Arabia for solar torque tubes, tracker piles and piers and transmission towers, which could strengthen its access to the Middle East market.
At the upper price band, Karamtara is valued at 35.7x FY26 P/E and 18.3x FY26 EV/EBITDA, implying a post-issue market capitalisation of ₹8,174.3 crore.
Karamtara Engineering IPO GMP, price band
The company has fixed a price band of ₹241-254 per share, with a lot size of 59 shares. At the upper end of the price band, the minimum investment required by retail investors is ₹14,986.
At ₹254 per share, Karamtara Engineering will have an estimated post-issue market capitalisation of ₹8,174.3 crore.
In the unlisted market, shares of Karamtara Engineering are commanding a grey market premium (GMP) of ₹68, indicating an implied listing gain of around 27% over the issue price.
However, GMP is only an unofficial indicator of market sentiment in the unlisted market and can change rapidly. It should not be considered a reliable indicator of the actual listing price.
IPO structure and use of proceeds
The IPO comprises a fresh issue of 2.66 crore shares worth ₹675 crore and an offer-for-sale (OFS) of 78.74 lakh shares worth ₹200 crore. In total, the issue comprises 3.44 crore shares.
The offer is being made through the book-building route. Up to 50% of the net offer will be available to qualified institutional buyers (QIBs), at least 15% to non-institutional investors and at least 35% to retail investors.
Karamtara plans to use ₹600 crore of the fresh issue proceeds to repay borrowings, while the remaining funds will be used for general corporate purposes.
Business profile
Karamtara Engineering manufactures products for the renewable energy and power transmission sectors. Its portfolio includes solar mounting structures, fixed-tilt structures, tracker components, fasteners and overhead transmission line hardware fittings.
The company describes itself as a one-stop supplier of solar structures and transmission-related products. It has also entered the wind energy segment by setting up a manufacturing facility for tubular towers used in wind turbines.
As of March 2026, Karamtara exported its products to more than 50 countries across North America, Europe, Asia, Africa, Australia and Latin America. It served 48 solar-product customers in FY24, 73 in FY25 and 65 in FY26.
A key competitive strength is its backward-integrated manufacturing model. The company has in-house galvanising facilities with capacity of 2,58,000 MTPA, which it says is the largest in India’s solar energy sector. Its rolling mill furnaces also provide greater control over costs, supply chain and delivery timelines.
Its solar products include fixed-tilt structures and tracker components used across different types of solar projects. In the transmission segment, it manufactures lattice towers with capabilities of up to 1,200 kV. As of September 30, 2024, the company had supplied more than 0.5 million tonnes of towers globally.
Karamtara also manufactures fasteners for the solar, wind, transmission, automobile and telecom industries, including bolts, nuts, studs, washers and customised fasteners.
Karamtara Engineering reported total income of ₹4,316.36 crore in FY26, up from ₹3,165.36 crore in FY25 and ₹2,427.12 crore in FY24.
Profit after tax rose 64% year-on-year to ₹228.75 crore in FY26, compared with ₹139.33 crore in FY25 and ₹102.65 crore in FY24.
JM Financial is the book-running lead manager to the issue, while MUFG Intime India is the registrar.
The allotment is expected to be finalised on September 15, while refunds and credit of shares to demat accounts are likely on September 16. The stock is expected to list on the BSE and NSE on September 17.
