Karbonsteel Engineering Limited, a leading structural engineering and fabrication company, has launched its IPO of ₹59.3 crore, offering investors an opportunity to participate in the company’s expansion. The Book Built Issue comprises a fresh issue of 30.39 lakh shares worth ₹48.32 crore and an offer for sale of 6.90 lakh shares totaling ₹10.97 crore. The IPO opens on September 9, 2025, and closes on September 11, 2025, with allotment expected on September 12, 2025. The shares will be listed on the BSE SME platform, tentatively on September 16, 2025.

Company Overview

Karbonsteel Engineering is engaged in the design, fabrication, and assembly of heavy and precision steel structures, customized to client specifications across multiple sectors. Their portfolio spans:

• Steel plants

• Railway bridges

• Oil & gas plants

• Refineries

• Chemical plants

• Other industrial units

The company’s expertise in structural engineering and fabrication solutions has established a strong market reputation, delivering projects in both domestic and international markets.

The company is led by an experienced management team, with Shrenik Kirit Shah as Promoter and Managing Director, boasting over 19 years of experience in the steel industry. His leadership has been pivotal in strategic planning, business operations, and growth initiatives.

IPO Details

• Price Band: ₹151 to ₹159 per equity share

• Lot Size: 800 shares (minimum investment 2 lots = 1,600 shares = ₹2,54,400)

• Market Capitalisation at ₹159/share: ₹224.85 crore

Structure of the IPO:

• Fresh Issue: 30.39 lakh shares worth ₹48.32 crore

• Offer for Sale: 6.90 lakh shares worth ₹10.97 crore

The IPO is managed by Seren Capital Private Limited as book running lead manager, Maashitla Securities Private Limited as registrar, with SS Corporate Securities Limited and Rikhav Securities Limited acting as Market Makers.

Grey Market Premium (GMP)

The GMP for Karbonsteel Engineering IPO is ₹16, suggesting a potential listing gain of around 10% based on market sentiment. Investors should note that GMP trading is unofficial and informal, depending on supply-demand dynamics outside the stock exchange.

Anchor Investors

The company raised ₹16.87 crore from anchor investors at the upper price band of ₹159 per share, with 10,60,800 equity shares allocated. Anchor investor participation ensures a strong foundation for IPO subscription and reflects institutional confidence in the company’s growth trajectory.

Financial Performance

Karbonsteel Engineering has shown steady growth in revenue and profitability over the past three fiscal years:

• Revenue (₹ Lakhs): FY25: 27,390.81 | FY24: 21,877.30 | FY23: 15,588.79

• EBITDA (₹ Lakhs): FY25: 3,746.40 | FY24: 2,622.33 | FY23: 1,652.92

• Profit After Tax (₹ Lakhs): FY25: 1,415.93 | FY24: 942.49 | FY23: 510.70

Key Performance Metrics:

• Pre-issue EPS (FY24): ₹12.78

• Post-issue EPS (FY24): ₹10.01

• Pre-issue P/E: 12.44x | Post-issue P/E: 15.88x | Industry P/E: 25x

• ROCE FY24: 24.63% | ROE FY24: 27.19% | RoNW: 23.45%

These metrics indicate a fairly priced IPO with significant potential for listing gains, making it attractive for risk-tolerant investors.

IPO Objectives

The net proceeds from the IPO will be used as follows:

1. ₹1,229.15 lakh for capital expenditure to expand the Umbergaon facility with new sheds

2. ₹307.54 lakh for repayment of certain borrowings

3. ₹2,525 lakh for working capital requirements

4. Remaining funds for general corporate purposes

This allocation aligns with the company’s strategy to strengthen infrastructure, increase production capacity, and support operational growth.

Subscription & Listing

The IPO opens for subscription on September 9, 2025, and closes on September 11, 2025. Investors can check their allotment status on the registrar website using PAN, application number, or DP Client ID after September 12, 2025.

Tentative Listing Date: September 16, 2025, on BSE SME

Investment Outlook

With strong financial growth, experienced management, strategic capital allocation, and promising market demand, Karbonsteel Engineering IPO provides an opportunity for investors to participate in a growing structural steel and fabrication business. The combination of GMP, financial metrics, and anchor investor participation indicates potential listing gains and long-term value creation.

Conclusion

Karbonsteel Engineering Limited is well-positioned for expansion, backed by a solid financial track record and strategic growth plans. The IPO serves as a platform for investors to benefit from the company’s growth story, with the listing on BSE SME expected to unlock value.

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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