Karamtara Engineering files DRHP with SEBI with the aim of launching an IPO – EQ
In Short : Karamtara Engineering has filed a Draft Red Herring Prospectus (DRHP) with SEBI to launch an Initial Public Offering (IPO) aiming to raise ₹1,750 crore. The IPO will include a fresh issue of ₹1,350 crore and an offer for sale of ₹400 crore. The company plans to use the proceeds for repaying obligations and further business expansion.
In Detail : Karamtara Engineering IPO date is not announced yet. Karamtara Engineering is a book built issue and have plan to raise around ₹1,750 crores via IPO that comprises fresh issue of ₹1,350 crore and offer for sale up to [.] Equity Shares with face value of 10 each. The retail quota is 35%, QIB is 50%, and HNI is 15% as per DRHP. The IPO to list on NSE and BSE.
One of the largest manufacturers of solar mounting structures and tractor components in India, Karamtara Engineering submitted its DRHP to SEBI (Securities and Exchange Board of India) for the purpose of raising funds of Rs.1750 crores through launching an IPO (Initial Public Offering).
This IPO comprises a mixture of both fresh issues of Rs 1,350 crore, and an Offer-for-sale component of Rs.400 crore of equity shares. The main objective behind raising funds through this public issue is to utilize the funds for repayment and prepayment of old borrowing from companies. The funds of Rs.1050 crores will be used for the repayment, prepay, and payment of the existing borrowings, while the remaining funds will be used for the expenses of the company’s general corporate purposes.
Karamtara Engineering is a backward-integrated manufacturer known for providing renewable energy and transmission lines sectors. In the Fiscal year 2024 and the six months ended September 30, 2024, according to the report, they are also one of the largest manufacturers of solar mounting structures and tracker components in terms of installed capacity.
As of September 30, 2024, their total installed capacity was 567,000 MTPA (including 374,700 MTPA for solar products equivalent to approximately 13.20 GW) and 480,000 pieces. The company’s portfolio consists of a comprehensive range of products such as solar tracker piles and piers, solar torque tubes, and lattice towers for the transmission line. Moreover, they also manufacture fasteners such as bolts, nuts, studs, washers, and OHTL hardware fittings and accessories such as insulator string fittings, jumper tubes, suspension clamps, and vibration dampers.
In the offer-for-sale, the company’s promoters, Tanveer Singh and Rajiv Singh, would sell their shares for Rs. 200 crore. Axia Select Opportunities Fund, Mithun Padam Sacheti, and Siddhartha Sacheti, Quantum State Investment Fund, Gaurav Trehan, Ananta Capital Venture Fund, Jaidev Rajnikant Shroff, Jagdish Naresh Master, Utpal Hemendra Sheth, Singularity Growth Opportunities Fund, and MNI Ventures are notable investors who made investments in the company.
The lead managers of the IPO are JM Financial, ICICI Securities, and IIFL Capital Services. In FY2024, the company generated a revenue of Rs.24,251.50 from operations compared to FY23 which was Rs.16,003.07.
Tanveer Singh and Rajiv Singh are the promoters of the company who will be selling their shares worth Rs.200 crore in the offer-for-sale. Notable investors who invested in the company through preferential allotment are Jagdish Naresh Master, Utpal Hemendra Sheth, Singularity Growth Opportunities Fund, Gaurav Trehan, Quantum State Investment Fund, Ananta Capital Venture Fund, Jaidev Rajnikant Shroff, Axia Select Opportunities Fund, Mithun Padam Sacheti and Siddhartha Sacheti, and MNI Ventures.
