Karamtara Engineering IPO Review: Price Band, Dates, Lot Size, Financials and RisksKaramtara Engineering IPO Review: Price Band, Dates, Lot Size, Financials and Risks

The Karamtara Engineering IPO opens on September 9 and closes on September 11, 2026. Karamtara Engineering is a Mumbai-based manufacturer of solar mounting structures, tracker components, transmission line towers, and fasteners, raising ₹875 crore through a fresh issue of ₹675 crore and an offer for sale of ₹200 crore by its promoters. 

IPO Snapshot

Event	Date
IPO Opens	September 9, 2026
IPO Closes	September 11, 2026
Allotment Date	September 15, 2026
Refund	September 16, 2026
Shares Credited to Demat	September 16, 2026
Listing Date (BSE, NSE)	September 17, 2026

Price Band and Lot Size

Detail	Value
Price Band	₹241 to ₹254 per share
Face Value	₹10 per share
Lot Size	59 shares
Minimum Investment	₹14,219 to ₹14,986
Retail Maximum	13 lots, or 767 shares (₹1,94,818)
Fresh Issue	₹675 crore
Offer for Sale	₹200 crore
Total Issue Size	₹875 crore
Listing	BSE and NSE

Pre-issue shareholding stood at 29,52,47,996 shares, rising to 32,18,22,799 shares post-issue. The fresh issue will bring new capital into Karamtara Engineering, while the offer for sale of ₹200 crore will go entirely to promoters Tanveer Singh and Rajiv Singh (₹100 crore each). The company will not receive any proceeds from the offer-for-sale portion.

What Does Karamtara Engineering Actually Do

Karamtara Engineering, incorporated in 1996, manufactures products for renewable energy and power transmission lines. Its core offerings include solar mounting structures (fixed-tilt and tracker components), lattice towers for transmission lines up to 1,200 kV, and fasteners for solar, wind, transmission, automobile and telecom applications.

The company positions itself as a one-stop shop for solar structures and tracker components, with backward integration through in-house galvanising facilities, described in the RHP as the largest in India’s solar energy sector, with a capacity of 258,000 MTPA, and rolling mill furnaces that support cost and time efficiency in the supply chain.

As of March 31, 2026, Karamtara had a global footprint, exporting to over 50 countries across North America, Europe, Asia, Africa, Australia and Latin America. It served 65 customers for its solar products in FY26, up from 73 in FY25 and 48 in FY24. The company is also entering the wind energy segment by setting up a manufacturing facility for tubular towers for wind turbines, with operations expected to begin in the first quarter of Fiscal 2026.

Its product portfolio spans:

• Solar energy: fixed-tilt structures and tracker components for all types of solar projects.
• Lattice towers for transmission lines: over 0.5 million MT of towers supplied globally as of September 30, 2024.
• Fasteners: bolts, nuts, studs, washers, and custom fasteners for solar, wind, transmission, auto, and telecom clients.

The Money Numbers

Metric	FY24	FY25	FY26
Total Income (₹ Crore)	242.71	316.54	431.64
Profit After Tax (₹ Crore)	10.27	13.93	22.88
Net Worth (₹ Crore)	55.29	98.27	121.94

Total income grew from ₹242.71 crore in FY24 to ₹431.64 crore in FY26, a rise of 36% between FY25 and FY26 alone. Profit after tax grew even faster, from ₹10.27 crore to ₹22.88 crore over the same period, up 64% year-on-year in FY26. Net worth more than doubled, from ₹55.29 crore to ₹121.94 crore.

EBITDA rose from ₹26.29 crore in FY24 to ₹34.68 crore in FY25 and ₹49.81 crore in FY26, with EBITDA margin improving from 10.83% to 11.55% over the same window. Total borrowings increased from ₹50.85 crore in FY24 to ₹55.63 crore in FY25 and ₹103.01 crore in FY26, taking debt-to-equity from 0.92 to 0.57 and then 0.84.

Return ratios were strong: ROE stood at 20.77% and ROCE at 23.27% in FY26, with RoNW at 20.78% and NAV of ₹41.72 per share. Basic EPS for FY26 was ₹7.75 pre-issue and ₹7.11 post-issue. At the upper price band of ₹254, this implies a pre-issue P/E of 32.77 times and a post-issue P/E of 35.72 times. Price-to-book value at the offer price works out to 6.09 times, down from 7.56 times a year earlier as net worth expanded.

Objects of the Issue

Purpose	Amount (₹ Crore)
Repayment or prepayment of certain borrowings and acceptances	600.00
General corporate purposes	Balance amount
Total identified objects	600.00

Strengths

• Leading integrated manufacturer in India for solar mounting structures and tracker components, with backward integration via large in-house galvanising capacity and rolling mill furnaces.
• Diversified product portfolio spanning solar structures, transmission towers and fasteners, reducing dependence on any single product line.
• Strong global footprint, exporting to over 50 countries across multiple continents and serving a broad customer base.
• Consistent revenue and profit growth, with total income up 36% and PAT up 64% between FY25 and FY26.
• Healthy return ratios, with ROE of 20.77%, ROCE of 23.27%, and RoNW of 20.78% in FY26.
• Entry into wind energy via tubular tower manufacturing, opening a new growth vertical alongside solar and transmission.
• High customer retention and long-standing relationships with global clients in renewable energy and power transmission.

Risks

• Debt-to-equity increased from 0.57 in FY25 to 0.84 in FY26, with total borrowings nearly doubling from ₹55.63 crore to ₹103.01 crore, even though the IPO plans to use ₹600 crore of fresh-issue proceeds to reduce this debt.
• The IPO is valued at a post-issue P/E of 35.72 times, above some recently listed power/renewables peers such as Juniper Green Energy (271x P/E but negative PAT) and Clean Max (634x P/E), making relative comparisons imperfect but still indicating a premium valuation for a manufacturing business.
• EBITDA margin, while improving, remains in the 10–12% range, typical of capital-intensive engineering manufacturing but leaving limited room for cost overruns or raw-material price spikes.
• The business is cyclical and tied to government policy, renewable-energy capex cycles, and transmission infrastructure spending; any slowdown in solar or transmission projects could affect order inflows.
• Export exposure to over 50 countries brings foreign-exchange, geopolitical and logistics risks, even as it diversifies revenue sources.
• The offer includes a meaningful offer-for-sale component (₹200 crore) by the promoters, representing a partial exit alongside the primary capital raise.
• Promoter shareholding will decline from 94.79% pre-issue to 83.64% post-issue, reflecting the combined effect of the fresh issue and the promoters’ OFS.

How to Apply

You can apply through Alice Blue by selecting your investor category, choosing the number of lots, and submitting your bid between September 9 and September 11.

If you do not want to track subscription numbers throughout the bidding window, Alice Blue’s IPO feature can apply on your behalf. Choose your category and lot size, confirm your UPI ID, and set a subscription trigger, such as below 1x, between 1x and 5x, or above 5x. The system tracks Karamtara Engineering’s live subscription numbers and submits the application once the selected condition is met. You then receive a UPI payment request to approve. Funds are not deducted until shares are allotted.

Frequently Asked Questions