Karamtara Engineering Files Draft Papers with SEBI for INR 1,750 Crore IPO

Karamtara Engineering Ltd. has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise INR 1,750 crore.

The IPO includes a fresh issue of equity shares worth INR 1,350 crore and an offer for sale by existing shareholders totalling INR 400 crore. Proceeds from the fresh issue will primarily be used for debt reduction, with INR 1,050 crore allocated to prepayment, repayment, or payment obligations to lenders, while the remainder will support general corporate purposes.

As a backward-integrated manufacturer, Karamtara Engineering specialises in transmission line and renewable energy products, positioning itself as the largest manufacturer of solar mounting structures and tracker components in India, as per the F&S Report for Fiscal 2024 and the six months ending September 30, 2024.

Its diverse product portfolio includes lattice towers for transmission lines, insulator string fittings, jumper tubes, vibration dampers, solar module mounting structures, solar tracker components, torque tubes, and fasteners. The company’s wide range of offerings enables it to act as a one-stop shop for solar structures, including trackers and fixed-tilt systems.

The IPO is managed by JM Financial Ltd. ICICI Securities Ltd., and IIFL Capital Services Ltd. as the book-running lead managers. This public issue highlights Karamtara’s focus on strengthening its market position, reducing debt, and fuelling future growth.