Karamtara Engineering files draft papers with Sebi for Rs 1,750-cr IPO
Power transmission firm Karamtara Engineering has filed preliminary papers with markets regulator Sebi seeking its approval to raise Rs 1,750 crore through an initial public offering (IPO).
The proposed IPO is a combination of a fresh issue of shares valued at Rs 1,350 crore and an offer for sale (OFS) of shares worth Rs 400 crore by promoters, according to the Draft Red Herring Prospectus (DRHP).
As a part of the OFS, promoters –Tanveer Singh and Rajiv Singh — are offloading shares worth Rs 200 crore each.
Overall, promoters hold 94.8 per cent stake in the company at present.
Proceeds of the fresh issue to the tune of Rs 1,050 crore will be used towards payment of debt and a portion will be utilised for general corporate purposes.
Karamtara Engineering is a backward integrated manufacturer of products for renewable energy and transmission lines sectors. It offers a diverse product portfolio which enables it to serve as a one-stop shop for solar structures (fixed-tilt and trackers).
The company offers lattice structures for transmission lines, fasteners for solar, wind, transmission and industrial sectors, and overhead transmission line hardware fittings and accessories.
In its draft paper, the company said it is foraying into the wind energy sector by setting up a manufacturing facility to produce tubular towers for wind turbines, which is expected to be operational by the first quarter of fiscal 2026.
On the financial front, the company posted a Profit After Tax (PAT) of Rs 102.65 crore in FY2024, more than double from Rs 42.36 crore in the preceding fiscal. Revenues rose to Rs 2,425.15 crore from Rs 1,600.31 crore in FY2023.
JM Financial, ICICI Securities, and IIFL Capital are the book-running lead managers, while MUFG Intime India, formerly known as Link Intime India Private Limited, is appointed as the registrar of the issue.