Karamtara Engineering files draft papers with SEBI for ₹1,750 crore IPO | Stock Market News
Source: Live Mint
Karamtara Engineering Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).
The company is a backward integrated manufacturer of transmission line and renewable energy products. According to the F&S Report, in terms of installed capacity during Fiscal 2024 and the six months ending September 30, 2024, it is the biggest and most prominent manufacturer of solar mounting structures and tracker components in India.
Because of their wide range of products, Karamtara Engineering may act as a one-stop shop for solar structures, including trackers and fixed-tilt systems.
The company offers a wide range of products, including structures for the transmission industry (like lattice towers for transmission lines) and the solar energy industry (like solar module mounting structures, solar tracker piles and piers, and solar torque tubes). Furthermore, it produces OHTL hardware fittings and accessories (such insulator string fittings, jumper tubes, suspension clamps, and vibration dampers) as well as fasteners (like bolts, nuts, studs, and washers).
IPO details
The total offer size includes a fresh issue of equity shares amounting to ₹1,350 crore, along with an offer for sale by Selling Shareholders totaling ₹400 crore. The Company plans to use the net proceeds from the fresh issue primarily for funding initiatives. Specifically, ₹1,050 crore will be allocated towards the prepayment, repayment, or payment obligations to lenders regarding borrowings. The remaining funds will be directed towards general corporate purposes.
The issue’s Book Running Lead Managers are JM Financial Limited, ICICI Securities Limited, and IIFL Capital Services Limited (formerly known as IIFL Securities Limited).
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