Karbonsteel Engineering Limited is a structural engineering and fabrication company engaged in the design, fabrication, and assembly of heavy and precision steel structures. The company provides customized solutions to meet client requirements across multiple industrial and infrastructure sectors. Its services extend to steel plants, railway bridges, oil & gas plants, refineries, chemical plants, and other industrial units.

The company has launched its Initial Public Offering (IPO) as a Book Built Issue worth ₹59.3 crore, comprising a fresh issue of 30.39 lakh shares worth ₹48.32 crore and an offer for sale of 6.90 lakh shares worth ₹10.97 crore. The IPO opens on September 9, 2025, and closes on September 11, 2025. The allotment will be finalised on September 12, 2025, and the listing is expected on the BSE SME platform on September 16, 2025.

The price band for the IPO has been set between ₹151 and ₹159 per equity share. At the upper price band, the market capitalisation will be approximately ₹224.85 crore. The lot size is fixed at 800 shares, and investors must apply for a minimum of 2 lots (1,600 shares) amounting to ₹2,54,400.

IPO Management

• Lead Manager: Seren Capital Pvt. Ltd.

• Registrar: Maashitla Securities Pvt. Ltd.

• Market Makers: SS Corporate Securities Ltd. and Rikhav Securities Ltd.

Use of IPO Proceeds
The company intends to utilise the IPO proceeds for:

1. ₹1,229.15 lakh – Expansion of the existing Umbergaon facility by constructing new sheds.

2. ₹307.54 lakh – Repayment of certain borrowings.

3. ₹2,525 lakh – Working capital requirements.

4. General corporate purposes.

Anchor Investment
Prior to opening, Karbonsteel Engineering raised ₹16.87 crore from anchor investors at a price of ₹159 per share, allocating 10,60,800 equity shares.

Financial Performance
Karbonsteel Engineering has demonstrated strong financial growth in recent years.

• Revenue from operations:

  • FY25: ₹27,390.81 lakh

  • FY24: ₹21,877.30 lakh

  • FY23: ₹15,588.79 lakh

• EBITDA:

  • FY25: ₹3,746.40 lakh

  • FY24: ₹2,622.33 lakh

  • FY23: ₹1,652.92 lakh

• Profit After Tax (PAT):

  • FY25: ₹1,415.93 lakh

  • FY24: ₹942.49 lakh

  • FY23: ₹510.70 lakh

This reflects steady and consistent growth in financial performance.

Key Ratios and Valuation

• 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 ratios suggest that the IPO is fairly priced relative to industry benchmarks.

Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Karbonsteel Engineering IPO is ₹16, indicating a 10.06% expected listing gain. While the GMP can fluctuate based on demand and supply, it provides some early investor sentiment.

Leadership and Management
The company is promoted by Shrenik Kirit Shah and Mittal Shrenik Shah. The Managing Director, Shrenik Kirit Shah, has over 19 years of experience in the steel industry and has been instrumental in driving the company’s growth, making strategic decisions, and managing overall operations.

Allotment Process
Investors can check their IPO allotment status after September 12, 2025, on the registrar’s website by entering their application number, PAN, or DP Client ID.

Analyst Recommendation
Karbonsteel Engineering’s financial performance, growth trajectory, and strong promoter background make it an attractive issue. The presence of a positive GMP of 10.06% indicates potential listing gains. However, given the mid-sized valuation and market volatility, this IPO is recommended only for risk-taking investors seeking short-term gains. Conservative investors may consider evaluating the company for long-term growth potential instead of immediate listing benefits.

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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