Mumbai: Karamtara Engineering Limited has received the final go-ahead from the Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO). The company had submitted its Draft Red Herring Prospectus (DRHP) to SEBI on January 23, 2025, and now has the green signal to move forward.
The IPO will consist of a fresh issue of equity shares worth Rs 1,350 crore and an offer for sale of Rs 400 crore by the company’s existing shareholders. The total IPO size comes to Rs 1,750 crore.
Karamtara Engineering is a key player in the energy and infrastructure sector. It is a backward integrated manufacturer, which means it makes many of the parts it needs in-house. The company focuses on making products for transmission lines and renewable energy. According to a report by F&S, it was the leading manufacturer of solar mounting structures and tracker parts in India by installed capacity in the financial year 2024 and the first half of 2024–25.
Its products cover a wide range, making it a one-stop solution for solar power projects. These include both moving (tracker) and non-moving (fixed-tilt) solar mounting systems. Karamtara also makes large structures like lattice towers for power transmission lines. Other products include parts for over-head transmission lines (like clamps, dampers, and fittings) and various types of fasteners such as bolts, nuts, and washers.
From the money raised through the fresh issue, Rs 1,050 crore will be used to pay back loans. The rest will go toward general business needs. This will help the company reduce its debt and grow further.
Several big investors have already put money into Karamtara through a preferential share allotment. These include Jagdish Naresh Master, Utpal Hemendra Sheth, Singularity Growth Opportunities Fund, Gaurav Trehan, and many others.
(Disclaimer: This IPO gives investors a chance to take part in India’s growing solar and power infrastructure sectors. However, experts advise checking with financial advisors before investing.)
