Karbonsteel Engineering Limited, a structural engineering and fabrication company, has announced the launch of its Initial Public Offering (IPO). The issue, which amounts to ₹59.30 crore, is set to open for public subscription on September 9, 2025, and will remain open until September 11, 2025. Investors keen on the SME segment can look forward to the tentative listing date of September 16, 2025, when the shares will debut on the BSE SME platform.

The company, which has been operational across industrial and infrastructure segments, specialises in the design, fabrication, and assembly of heavy and precision steel structures. Its projects span diverse industries such as steel plants, oil and gas plants, refineries, chemical units, and railway bridges. Karbonsteel Engineering has steadily built a name for itself by catering to customised client requirements in the engineering space.

Details of the IPO Structure

The IPO is a Book Built Issue comprising both a Fresh Issue and an Offer for Sale (OFS). The Fresh Issue consists of 30.39 lakh equity shares, aggregating to ₹48.32 crore, while the OFS involves 6.90 lakh shares, amounting to ₹10.97 crore. The funds raised will be used to meet the company’s growth and financial objectives.

The price band has been set at ₹151 to ₹159 per equity share, with a lot size of 800 shares. Retail investors must subscribe to at least two lots, equivalent to 1,600 shares, requiring a minimum investment of ₹2,54,400. At the upper band of ₹159 per share, the company’s market capitalisation will stand at approximately ₹224.85 crore.

Seren Capital Private Limited has been appointed as the book running lead manager, while Maashitla Securities Private Limited will act as the registrar to the issue. The market making responsibility has been assigned to SS Corporate Securities Limited and Rikhav Securities Limited.

Grey Market Premium (GMP)

Ahead of the subscription opening, the Grey Market Premium (GMP) for Karbonsteel Engineering IPO is hovering around ₹16, indicating an expected listing price of approximately ₹175 per share. While the GMP is often viewed as an indicator of investor sentiment, it is essential to note that these are unofficial trades and not part of regulated markets. The premium is entirely driven by demand and supply forces in the unorganised segment, and hence, cannot be relied upon as a true reflection of the post-listing price.

Anchor Investors

Karbonsteel Engineering has successfully raised ₹16.87 crore from anchor investors ahead of the IPO opening. At a price of ₹159 per share, the company allocated 10,60,800 equity shares to anchor investors in consultation with the book running lead manager.

It is important to note that shares allotted to anchor investors are part of the Qualified Institutional Buyers (QIBs) quota. The participation of anchor investors usually provides confidence to retail and institutional investors regarding the issue.

Allotment Details

The allotment of shares for Karbonsteel Engineering IPO is expected to be finalised on September 12, 2025, and will be available for investors to check on the registrar’s website from the same date. Investors can check their allotment status using their PAN, application number, or DP Client ID on the portal.

Objectives of the IPO

The net proceeds of the IPO will be directed towards the following objectives:

1. Funding capital expenditure for the expansion of the existing Umbergaon facility, which will include construction of new sheds (₹12.29 crore).

2. Repayment of borrowings partially to reduce the company’s debt burden (₹3.07 crore).

3. Working capital requirements to support operational and financial flexibility (₹25.25 crore).

4. General corporate purposes to enhance overall business strength and sustainability.

Subscription Timeline

• IPO Open Date: September 9, 2025

• IPO Close Date: September 11, 2025

• Allotment Date: September 12, 2025

• Refunds Initiation: September 13, 2025

• Demat Transfer of Shares: September 15, 2025

• Tentative Listing Date: September 16, 2025

Industry Outlook

The engineering and fabrication industry in India is witnessing steady growth, driven by infrastructure development, industrial expansion, and investments in the energy and oil & gas sectors. Companies like Karbonsteel Engineering, with their customised solutions and domain expertise, stand to benefit from the increased demand for structural steel solutions.

Furthermore, the government’s push for Make in India and infrastructure modernisation enhances the prospects for companies operating in this sector. However, the industry also faces challenges such as fluctuating raw material prices, competition from domestic and global players, and cyclical demand patterns.

Conclusion

The Karbonsteel Engineering IPO presents an opportunity for investors to participate in the growth of a mid-sized engineering and fabrication player with a strong presence across multiple industrial verticals. With a competitive price band, anchor investor backing, and a clear plan for fund utilisation, the IPO is expected to attract significant attention.

That said, potential investors must evaluate both the risks and opportunities, keeping in mind factors such as market volatility, sector challenges, and long-term growth outlook.

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.

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