Karbonsteel Engineering Limited is gearing up for its Initial Public Offering (IPO), which will open for subscription on September 9, 2025, and close on September 11, 2025. The IPO is structured as a Book Built Issue amounting to ₹59.30 crore, including a Fresh Issue of 30.39 lakh shares worth ₹48.32 crore and an Offer for Sale (OFS) of 6.90 lakh shares totaling ₹10.97 crore.

The company, primarily engaged in structural engineering and fabrication, designs, fabricates, and assembles heavy and precision steel structures customised to meet the requirements of clients across different industrial and infrastructure sectors. Its projects span industries such as steel plants, railway bridges, oil & gas facilities, refineries, chemical plants, and other industrial units. Over time, Karbonsteel Engineering has established itself as a trusted partner for businesses seeking tailored structural engineering solutions.

IPO Details

The IPO price band has been set between ₹151 and ₹159 per equity share, with a lot size of 800 shares. Retail investors are required to apply for at least 2 lots (1,600 shares), amounting to a minimum investment of ₹2,54,400.

At the upper price band of ₹159, the market capitalisation of Karbonsteel Engineering is expected to reach approximately ₹224.85 crore.

The shares will be listed on the BSE SME platform, with a tentative listing date of September 16, 2025.

The IPO is being managed by Seren Capital Private Limited as the Book Running Lead Manager, with Maashitla Securities Private Limited serving as the Registrar for the issue. The Market Makers for the IPO are SS Corporate Securities Limited and Rikhav Securities Limited.

Grey Market Premium (GMP) Update

As of September 3, 2025, the Grey Market Premium (GMP) for Karbonsteel Engineering IPO stands at ₹16, suggesting an expected listing price of ₹175 compared to the IPO price of ₹159. This indicates an upside of approximately 10.06% in the grey market.

However, it is important to note that GMP is unofficial and unregulated, as it merely reflects demand and supply trends in the unorganised market. No actual trades occur, and the GMP cannot accurately predict listing price movements. Investors are therefore advised to rely more on fundamental analysis and official subscription data rather than GMP while making investment decisions.

Anchor Investors

Karbonsteel Engineering successfully raised ₹16.87 crore from Anchor Investors at a price of ₹159 per share. The company allotted 10,60,800 equity shares to anchor investors on September 8, 2025, a day before the IPO opened for subscription.

Anchor investors bring confidence and stability to an IPO, often reflecting the institutional trust placed in the company’s fundamentals. However, it is important for retail investors to remember that Anchor Investor allotments are carved out from the Qualified Institutional Buyers (QIB) category.

IPO Subscription Dates and Allotment

The subscription period for Karbonsteel Engineering IPO is from September 9 to September 11, 2025. The allotment date is expected to be September 12, 2025, and shares are likely to be credited to investors’ demat accounts by September 15, 2025.

Investors can check their allotment status online by following these steps:

• Visit the Registrar’s website.

• Select Karbonsteel Engineering IPO from the dropdown menu.

• Enter Application Number, PAN, or DP Client ID.

• Submit the details to view the allotment status.

This process allows investors to confirm whether they have received shares in the IPO before the tentative listing date of September 16, 2025.

Objectives of the IPO

Karbonsteel Engineering intends to utilise the Net Proceeds from the IPO towards:

1. ₹1,229.15 lakh for funding capital expenditure, including expansion of its existing Umbergaon facility through the construction of new sheds.

2. ₹307.54 lakh for the repayment of certain borrowings.

3. ₹2,525.00 lakh towards working capital requirements to strengthen day-to-day operations.

4. Remaining funds will be utilised for general corporate purposes.

These objectives reflect the company’s commitment to expand production capacity, reduce debt, and maintain liquidity for operational growth.

Company Strengths

Karbonsteel Engineering possesses several competitive strengths that make it an attractive proposition for investors:

• Established track record in delivering structural engineering solutions across industries.

• Diversified portfolio of projects in steel plants, refineries, oil & gas, chemical units, and infrastructure.

• Experienced management team with strong execution capabilities.

• Focus on customisation, enabling the company to deliver solutions tailored to client requirements.

• Strong demand visibility, supported by the growing need for infrastructure and industrial development in India.

Risks and Considerations

Investors should also be aware of potential risks before investing in the IPO:

• Dependence on industrial and infrastructure demand cycles, which may be impacted by economic slowdowns.

• High working capital requirements, given the scale of fabrication projects.

• Competitive landscape, with many established players in structural engineering and fabrication.

• Reliance on raw material price stability, especially steel, which impacts margins.

Conclusion

The Karbonsteel Engineering IPO provides investors with an opportunity to invest in a company with a strong foundation in structural engineering and fabrication, backed by an impressive project portfolio across diverse industries. With the IPO proceeds earmarked for capacity expansion, debt reduction, and working capital, the company aims to strengthen its financial position and fuel its future growth.

While the Grey Market Premium indicates positive sentiment ahead of listing, investors must consider both the opportunities and associated risks before making an investment decision. Given the company’s track record, industry presence, and clear utilisation plan for IPO proceeds, Karbonsteel Engineering IPO has the potential to attract strong interest from investors.

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.