Karamtara Engineering IPO: 66x Subscription and 19% GMP Ahead of Listing

Karamtara Engineering shares are set to debut on the BSE and NSE on Thursday, September 17, following a highly subscribed public offering. The ₹875-crore issue, which closed on September 11, attracted 66.01 times overall subscription. A grey market premium of approximately 19% suggests investors expect a listing price above the ₹241-₹254 issue band, though this metric remains speculative.

The company raised ₹262.50 crore from 15 anchor investors at the upper price band of ₹254 per share. The issue comprised a fresh share offering of 2.66 crore shares and an offer for sale of 78.74 lakh shares. Karamtara plans to use ₹600 crore of the fresh issue proceeds to repay borrowings, with the remaining amount allocated for general corporate purposes.

Financial Growth Driven By Solar Demand

Karamtara’s financial performance shows consistent expansion over the last three fiscal years. Total income increased from ₹2,427.12 crore in FY24 to ₹3,165.36 crore in FY25, reaching ₹4,316.36 crore in FY26. Profit after tax rose 64% year-on-year to ₹228.75 crore in FY26, compared with ₹139.33 crore in FY25. This growth aligns with the company’s strategy of expanding its customer base, which grew from 48 solar-product customers in FY24 to 73 in FY25.

The company serves as a supplier for solar mounting structures, tracker components, and transmission line hardware. As of March 2026, Karamtara exports its products to more than 50 countries across North America, Europe, Asia, Africa, Australia, and Latin America. The firm’s portfolio also includes fasteners for the wind, automobile, and telecom sectors, diversifying its revenue streams beyond core solar installations.

Manufacturing Capacity Supports Cost Control

Karamtara maintains backward integrated manufacturing operations to manage supply chain risks and costs. The company operates in-house galvanising facilities with a capacity of 258,000 metric tonnes per annum, which it identifies as the largest in India’s solar energy sector. This vertical integration allows for greater control over delivery timelines and material costs, a critical advantage in the competitive renewable energy hardware market.

In the power transmission segment, the firm manufactures lattice towers with capabilities up to 1,200 kilovolts. As of September 30, 2024, Karamtara had supplied over 0.5 million tonnes of towers globally. The company has also entered the wind energy segment through a facility dedicated to manufacturing tubular towers for wind turbines, further broadening its industrial footprint.

Subscription Data Reflects Investor Interest

Investor appetite varied significantly across categories during the subscription period. The qualified institutional buyer segment, excluding the anchor portion, subscribed 168.19 times, indicating strong institutional confidence. Non-institutional investors subscribed 51.17 times, while the retail portion saw 13.98 times subscription. According to GN stocks/ipo, this disparity highlights that institutional investors drove the majority of the demand for the engineering firm’s equity.