Karamtara Engineering, a Mumbai-based manufacturer of solar mounting structures and tracker components, has garnered significant attention with its pre-IPO funding round. Notably, Bollywood actors Ranbir Kapoor and Aamir Khan, along with cricketers Rohit Sharma and Jasprit Bumrah, have collectively invested ₹105.7 crore in the company. This investment was made through a secondary sale of 34.09 lakh shares at ₹310 per share, indicating strong confidence in Karamtara's growth prospects.

Details of the Investment:

• Ranbir Kapoor acquired 1,61,300 shares worth ₹5 crore.

• Aamir Khan purchased 1,29,050 shares amounting to ₹4 crore.

• Rohit Sharma and Jasprit Bumrah each invested ₹2 crore.

• Karan Johar bought 4.85 lakh shares for ₹1.5 crore.

These investments highlight the growing trend of celebrities participating in the renewable energy sector, recognizing its potential for sustainable growth.

Karamtara Engineering's IPO Plans

In January 2025, Karamtara Engineering filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,750 crore through an initial public offering (IPO). The IPO comprises a fresh issue of ₹1,350 crore and an offer-for-sale (OFS) of ₹400 crore by promoters Tanveer Singh and Rajiv Singh, who will each sell shares worth ₹200 crore.

Utilization of IPO Proceeds:

• Debt Repayment: ₹1,050 crore from the fresh issue will be allocated to repay outstanding borrowings of ₹586.4 crore and letters of credit amounting to ₹733.6 crore as of November 2024.

• General Corporate Purposes: The remaining funds will be used for general corporate activities, supporting the company's expansion and operational needs.

Company Overview and Financial Performance

Karamtara Engineering is a backward-integrated manufacturer specializing in products for the renewable energy and transmission line sectors. The company offers lattice structures for transmission lines, fasteners for solar, wind, transmission, and industrial sectors, and overhead transmission line hardware fittings and accessories.

Financial Highlights:

• Revenue: Increased to ₹2,425.15 crore in FY24 from ₹1,600.31 crore in FY23.

• Profit After Tax (PAT): Doubled to ₹102.65 crore in FY24 from ₹42.36 crore in FY23.

These figures reflect the company's robust growth trajectory and its strong position in the renewable energy infrastructure market.

Market Position and Future Outlook

Karamtara Engineering competes with established players like Inox Wind, KP Green Engineering, Premier Energies, Waaree Energies, and Suzlon Energy. The company's comprehensive product offerings and backward-integrated manufacturing model position it as a one-stop solution provider in the renewable energy sector.

With the infusion of funds from the upcoming IPO, Karamtara aims to significantly reduce its debt burden and invest in future growth opportunities, including expanding its manufacturing capacities and exploring new markets.

Conclusion

The substantial investments from prominent Bollywood actors and cricketers underscore the confidence in Karamtara Engineering's business model and growth prospects. As the company prepares for its ₹1,750 crore IPO, it stands poised to strengthen its position in the renewable energy sector, contributing to India's sustainable development goals.

The Upcoming IPOs in this week and coming weeks are Srigee DLM, Manoj Jewellers.

The Current active IPO are Wagons Learning, Kenrik Industries, Arunaya Organics.

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