Karamtara Engineering, a heavyweight in the renewable energy and transmission manufacturing space, has taken a major step toward its public market debut. The company has filed its issue papers with the Securities and Exchange Board of India (SEBI), gearing up for an IPO worth INR 1,750 crore.
Karamtara Engineering IPO comprises a fresh issue of INR 1,350 crore and an offer for sale (OFS) worth INR 400 crore. The OFS allows the company’s promoters to partially cash out while still keeping a firm grip on the business. The move signals Karamtara’s intent to strengthen its financial position and ride the wave of growing demand for green energy infrastructure.
Karamtara Engineering IPO – Promoters
At the helm are the key promoters—Tanveer Singh, Rajiv Singh, Inderjeet Singh, along with the Inderjeet Tanveer Singh Trust and Inderjeet Rajiv Singh Trust.
Here’s how the OFS stacks up:
- Tanveer Singh: INR 200 crore
- Rajiv Singh: INR 200 crore
This hybrid structure of fresh funds and promoter exits is a strategic one. While the company gets the cash it needs to fuel growth and reduce debt, the promoters can monetize a slice of their stake, keeping the balance intact.
Three big names are steering the Karamtara Engineering IPO: JM Financial, ICICI Securities, and IIFL Capital. Meanwhile, MUFG Intime India is appointed as the registrar of the issue. The lineup of these seasoned players hints at the scale and seriousness of this offering.
Karamtara Engineering – Business Overview
So, what makes Karamtara Engineering stand out? For starters, it’s one of India’s top names in renewable energy and transmission products. According to the F&S Report, as of September 2024, it’s the largest domestic manufacturer of solar mounting structures and tracker components.
With a production capacity of 567,000 metric tons annually, the company has the infrastructure to cater to a booming green energy market. Not just in India—Karamtara has a strong presence abroad too. Its products reach over 50 countries, with exports making up 57.56% of FY 2024 revenues.
Karamtara isn’t just about one product—it’s a full-fledged solution provider in renewable energy and beyond:
- Solar Structures: Fixed-tilt and tracker systems designed for large-scale solar projects.
- Transmission Hardware: Key accessories for overhead transmission lines.
- Fasteners: Nuts, bolts, and washers for high-stress infrastructure needs.
- Structural Steel: Angles, channels, and beams for various applications.
This wide product range has earned Karamtara a customer base that includes OEMs, EPC contractors, and IPPs worldwide.
Financial Snapshot
If financial growth is an indicator, Karamtara is on a roll.
- FY 2024 Revenue: INR 2,425.15 crore (a 51% jump from FY 2023’s INR 1,600.31 crore).
- Profit After Tax (PAT): INR 102.65 crore in FY 2024, more than double FY 2023’s INR 42.36 crore.
- EBITDA Margins: On the rise, thanks to tighter operations and smart cost management.
In the first half of FY 2025 (up to September 2024), the company pulled in INR 1,413.10 crore in revenue and INR 5.90 crore in PAT, showing solid momentum.
Karamtara operates eight manufacturing units—seven in Maharashtra and one in Italy. From solar tracker piles to transmission hardware and galvanized products, their backwards-integrated approach keeps costs low and quality high.
They’ve also got in-house rolling mills and galvanizing facilities, making the whole process more efficient and reducing reliance on external suppliers.
Use of the Issue Proceeds
The INR 1,750 crore IPO isn’t just about raising funds—it’s about redefining the company’s future. Here’s where the money’s going:
- Debt Reduction: INR 1,050 crore will go toward paying off loans, easing the financial strain, and freeing up resources for growth.
- General Corporate Needs: From brand building to boosting operations, this is about setting the stage for future expansion.
Karamtara isn’t just stopping with solar. It’s also gearing up for wind energy. The company is developing a new facility for tubular wind turbine towers, which is expected to go live in FY 2026. This diversification, paired with a strong export focus, positions Karamtara as a key player in the global renewable energy market. And with CBAM compliance, it’s ready to work with European clients prioritizing sustainability.
The Final Word
Karamtara Engineering IPO is more than a fundraising exercise—it’s a statement of intent. The company is betting big on the renewable energy boom, and its strong financials, wide product range, and export-heavy strategy give it a solid foundation.
For investors looking to back green energy, this offering could be an exciting opportunity. With a clear roadmap for expansion and a focus on innovation, Karamtara looks poised to leave its mark on the renewable energy industry.
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