Karbonsteel Engineering Limited is coming out with its Initial Public Offering (IPO), opening on September 9, 2025, and closing on September 11, 2025. The company, a leading player in structural engineering and fabrication, has announced a Book Built Issue IPO of ₹59.30 crores, consisting of a Fresh Issue of 30.39 lakh equity shares worth ₹48.32 crores and an Offer for Sale (OFS) of 6.90 lakh shares worth ₹10.97 crores.

The IPO has generated significant attention in the market, especially among SME investors, given the company’s track record, financial growth, and upcoming expansion plans. Let us look at the full details of the IPO, Grey Market Premium (GMP), subscription status, allotment procedure, financial performance, and whether investors should subscribe to the issue.

Company Overview: Karbonsteel Engineering Limited

Karbonsteel Engineering is a structural engineering and fabrication company primarily engaged in the design, fabrication, and assembly of heavy and precision steel structures. These are customized solutions catering to a variety of industrial and infrastructure segments.

The company has successfully executed projects in multiple sectors including:

• Steel plants

• Railway bridges

• Oil & Gas plants

• Refineries

• Chemical plants

• Industrial units

With an experienced management team led by Promoter and Managing Director Mr. Shrenik Kirit Shah, who has more than 19 years of industry experience, the company has built a solid reputation in engineering and fabrication solutions. His leadership, along with that of co-promoter Mittal Shrenik Shah, has guided Karbonsteel’s growth trajectory.

Karbonsteel Engineering IPO Details

• IPO Type: Book Built Issue

• IPO Size: ₹59.30 Crores

• Fresh Issue: ₹48.32 Crores (30.39 lakh equity shares)

• Offer for Sale (OFS): ₹10.97 Crores (6.90 lakh equity shares)

• IPO Open Date: September 9, 2025

• IPO Close Date: September 11, 2025

• Basis of Allotment: September 12, 2025

• Listing Date: September 16, 2025 (Tentative)

• Listing Exchange: BSE SME

• Price Band: ₹151 to ₹159 per share

• Lot Size: 800 shares

• Minimum Investment (Retail): 2 lots (1,600 shares) = ₹2,54,400

• Market Capitalisation at Upper Price Band: ₹224.85 Crores

• Lead Manager: Seren Capital Private Limited

• Registrar: Maashitla Securities Private Limited

• Market Makers: SS Corporate Securities Limited, Rikhav Securities Limited

Karbonsteel Engineering IPO GMP (Grey Market Premium)

As of September 3, 2025, the GMP (Grey Market Premium) of Karbonsteel Engineering IPO stood at ₹16 per share. This suggests an expected listing price of ₹175 against the upper band of ₹159, indicating a potential listing gain of around 10.06%.

However, it is important to note that GMP is based on unofficial trading in the unorganised market and may change depending on demand and supply. It should not be the sole factor for investment decisions.

Anchor Investors

Karbonsteel Engineering has raised ₹16.87 crores from Anchor Investors by allotting 10,60,800 equity shares at ₹159 per share. Anchor investors bring credibility to the issue and help in building investor confidence before the IPO opens for the public.

Objectives of the IPO

The net proceeds from the IPO will be utilised for the following purposes:

1. ₹1,229.15 lakh for expansion of the existing Umbergaon facility through the construction of new sheds.

2. ₹307.54 lakh for repayment of a portion of borrowings.

3. ₹2,525.00 lakh for working capital requirements.

4. Balance for general corporate purposes.

This shows that a large portion of funds will be used for capacity expansion and working capital, which are essential for supporting the company’s growing order book.

Financial Performance of Karbonsteel Engineering

The company has shown consistent revenue and profit growth over the last three years.

• Revenue from Operations:

  • FY 2025: ₹27,390.81 lakhs

  • FY 2024: ₹21,877.30 lakhs

  • FY 2023: ₹15,588.79 lakhs

• EBITDA:

  • FY 2025: ₹3,746.40 lakhs

  • FY 2024: ₹2,622.33 lakhs

  • FY 2023: ₹1,652.92 lakhs

• Profit After Tax (PAT):

  • FY 2025: ₹1,415.93 lakhs

  • FY 2024: ₹942.49 lakhs

  • FY 2023: ₹510.70 lakhs

This reflects steady growth in revenue, EBITDA, and net profit, which indicates strong operational efficiency and business scalability.

Key Ratios and Valuation

• Pre-Issue EPS (FY24): ₹12.78

• Post-Issue EPS (FY24): ₹10.01

• Pre-Issue P/E Ratio: 12.44x

• Post-Issue P/E Ratio: 15.88x

• Industry P/E: 25x

• ROCE (FY24): 24.63%

• ROE (FY24): 27.19%

• RoNW: 23.45%

These figures suggest that the IPO is reasonably priced compared to industry peers, though the higher post-issue P/E shows the company is valued at a premium.

Karbonsteel Engineering IPO Subscription Status

The IPO will open on September 9, 2025, and the subscription figures will be updated in real time on the BSE platform. Investors can track retail, institutional, and HNI demand during the subscription window.

Karbonsteel Engineering IPO Allotment

The allotment will be finalised on September 12, 2025, and investors can check their allotment status on the Maashitla Securities Private Limited website by entering their PAN, DP Client ID, or application number.

Steps to check allotment status:

1. Visit the IPO allotment status page.

2. Select Karbonsteel Engineering IPO from the dropdown menu.

3. Enter your application number, PAN, or DP Client ID.

4. Submit to view the allotment details.

Expert Review – Should You Apply?

The Karbonsteel Engineering IPO has strong fundamentals, robust financial growth, and a clear business strategy focused on expansion. With a GMP of ₹16 indicating 10% expected listing gains, the IPO is attracting interest among investors.

However, the IPO requires a minimum investment of ₹2,54,400, which is relatively high for retail investors. Also, being an SME IPO, liquidity may be limited after listing.

Recommendation: Given the financial performance, expansion plans, and listing premium, the IPO may suit risk-tolerant investors looking for listing gains. Conservative investors may wait and watch post-listing performance before entering.

The Upcoming IPOs in this week and coming weeks are Karbonsteel Engineering, Taurian MPS, L. T. Elevator, Galaxy Medicare, Airfloa Rail Technology, Dev Accelerator, Jay Ambe Supermarkets, Urban Company, Shringar House of Mangalsutra, .

The Current active IPO are Nilachal Carbo Metalicks, Krupalu Metals, Vashishtha Luxury Fashion, Sharvaya Metals, Vigor Plast India, Austere Systems.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.