One of the largest manufacturers of solar mounting structures and tractor components in India, Karamtara Engineering, submitted its DRHP to SEBI (Securities and Exchange Board of India) to raise funds of ₹1750 crores through launching an IPO (Initial Public Offering).
Recently, Karamtara Engineering received SEBI nod for the IPO valued at ₹1750 crores, wherein the fresh issue is ₹1,350 crores and an Offer-for-sale component of ₹400 crores of equity shares.
MUFG Intime India, formerly Link Intime India, is the issue registrar. JM Financial, ICICI Securities, and IIFL Capital are the book-running lead managers.
The main objective behind raising funds through this public issue is to utilize the funds for repayment and prepayment of old borrowings from companies.
The funds of ₹1050 crores will be used for the repayment, prepay, and payment of the existing borrowings, while the remaining funds will be used for the expenses of the company’s general corporate purposes.
Karamtara Engineering is a backward-integrated manufacturer, known for its expertise in providing solutions to the renewable energy and transmission lines sectors. According to the report, in Fiscal Year 2024 and the six months ended September 30, 2024, they are also one of the largest manufacturers of solar mounting structures and tracker components in terms of installed capacity.
As of September 30, 2024, their total installed capacity was 567,000 MTPA (including 374,700 MTPA for solar products equivalent to approximately 13.20 GW) and 480,000 pieces.
The company’s portfolio consists of a comprehensive range of products such as solar tracker piles and piers, solar torque tubes, and lattice towers for the transmission line. Moreover, they also manufacture fasteners such as bolts, nuts, studs, washers, and OHTL hardware fittings and accessories such as insulator string fittings, jumper tubes, suspension clamps, and vibration dampers.
Karamtara Engineering IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Karamtara Engineering Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹1246.68 | ₹1223.75 | ₹12.65 |
| 2023 | ₹1601.07 | ₹1554.48 | ₹42.36 |
| 2024 | ₹2427.12 | ₹2289.68 | ₹102.65 |
| September 2024 | ₹1414.31 | ₹1335.43 | ₹58.99 |
Karamtara Engineering IPO Valuation – FY2024
Karamtara Engineering IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹3.64 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 20.47% |
| Net Asset Value (NAV): | ₹19.60 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Inox Wind Limited | (1.56) | N.A | N.A | 50.61 | 1743.24 Cr. |
| KP Green Engineering Limited | 9.70 | 50.41 | 23.64% | 2381.68 | 349.05 Cr. |
| Premier Energies Limited | 6.93 | 213.61 | 46.29% | 14.63 | 3143.79 Cr. |
| Waaree Energies Limited | 48.05 | 55.36 | 43.20% | 154.95 | 11397.61 Cr. |
| Suzlon Energy Ltd | 0.50 | 113.76 | N.A | (1.95) | 6496.84 Cr. |
Objects of the Issue
- Funding prepayment, repayment and/ or payment obligations to our lenders towards borrowings and Acceptances, in part or full; and
- General corporate purposes
IPO Lead Managers aka Merchant Bankers
- JM Financial Limited
- ICICI Securities Limited
- IIFL Capital Services Limited
