Karamtara Engineering, a leading manufacturer of solar mounting structures and tracker components, has filed its draft papers with SEBI to launch an Initial Public Offering (IPO) worth Rs 1,750 crore. The company aims to use the IPO proceeds to significantly reduce its debt burden.
The IPO will include a fresh equity issuance of Rs 1,350 crore and an offer-for-sale (OFS) worth Rs 400 crore by the company’s promoters, Tanveer Singh and Rajiv Singh, each selling shares worth Rs 200 crore.
Business Overview
Karamtara Engineering is a backward-integrated manufacturer for renewable energy and transmission line sectors. It has an installed capacity of 5.67 lakh MTPA for its products and 4.8 lakh pieces as of September 2024. The company manufactures solar structures, fasteners, and transmission line fittings. It has also started working on entering the wind energy sector by setting up a manufacturing facility for tubular towers for wind turbines, which will be operational from Q1 FY26.
Exports play a significant role in its business, contributing 57.56% to the company’s total revenue in FY24. Its international clientele includes original equipment manufacturers (OEMs), engineering, procurement, and construction (EPC) firms, and independent power producers (IPPs).
Karamtara Engineering has recorded steady growth regarding its financials for the last few years. As of FY24, a growth of 142.3% has taken place to Rs 102.7 crore for the company, and revenue increased by 51.5% to Rs 2,425.2 crore compared to FY23. The profit rose by 51.6% to Rs 59 crore, followed by revenue increasing by 34.2 per cent to Rs 1,413.1 crore for six months ending September 2024.
The Mumbai-based company will utilise Rs 1,050 crore of the net proceeds from the fresh issue to repay debt, while the balance is to be utilised for general corporate purpose. The total borrowings of the company stood at Rs 586.4 crore as of November 2024, besides outstanding acceptances under letters of credit aggregating to Rs 733.6 crore.
It is said the company is eyeing a post-issue valuation of Rs 10,411 crore. Karamtara had raised Rs 307.17 crore in January 2025 through a preferential allotment of 98.08 lakh shares at Rs 310 apiece. The key investors were Singularity Growth Opportunities Fund, Quantum State Investment Fund, Ananta Capital Venture Fund, among others.
Industry Competition
Karamtara competes with listed entities such as Suzlon Energy, Inox Wind, KP Green Engineering, Premier Energies, and Waaree Energies in the renewable energy and transmission sector.
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Source: Moneycontrol
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