Upcoming IPO: Karamtara Engineering Limited, which submitted its Draft Red Herring Prospectus (DRHP) in January 2025, has today received final observations from SEBI to proceed with its IPO fundraising. The company presented its IPO paperwork to SEBI on January 23, 2025.
As a backward integrated producer of transmission line and renewable energy products, Karamtara Engineering stands out. According to the F&S Report, it holds the position as the top manufacturer of solar mounting structures and tracker components in India based on installed capacity for Fiscal 2024 and for the six months ending September 30, 2024.
Given their extensive product range, Karamtara Engineering has the potential to serve as a single-source provider for solar structures, encompassing both trackers and fixed-tilt systems. The company’s offerings include structures for the transmission sector (such as lattice towers for transmission lines) alongside the solar energy sector (like solar module mounting structures, solar tracker piles and piers, and solar torque tubes).
In addition, it manufactures OHTL hardware fittings and accessories (including insulator string fittings, jumper tubes, suspension clamps, and vibration dampers) as well as fasteners (such as bolts, nuts, studs, and washers).
IPO details
The total size of the offer consists of a new equity shares issue valued at ₹1,350 crore, in addition to an offer for sale by Selling Shareholders amounting to ₹400 crore. The Company intends to utilize the net proceeds from the new issue primarily for funding initiatives.
Specifically, ₹1,050 crore will be set aside for the prepayment, repayment, or settlement of obligations owed to lenders related to borrowings. The remaining funds will be allocated for general corporate purposes.
Prominent investors such as 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, along with MNI Ventures, have invested in the firm through preferential allotment, as stated in the DRHP.
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