Karbonsteel Engineering Ltd has officially opened its ₹59.30 crore Initial Public Offering (IPO) for subscription today, September 9, 2025. The three-day book-built issue will close on September 11, with listing scheduled for September 16 on the BSE SME platform. The IPO has already garnered attention in the grey market, with a grey market premium (GMP) of ₹17 over the upper price band of ₹159, indicating a potential listing price of around ₹176–₹178 if sentiment sustains.
The IPO comprises a fresh issue of 30 lakh equity shares aggregating to ₹48.33 crore and an offer-for-sale (OFS) of 6.9 lakh shares worth ₹10.97 crore. The price band is fixed between ₹151 and ₹159 per share, and investors can bid for a minimum lot of 800 shares. Retail investors need to invest ₹2.54 lakh for one lot at the upper price band, while high-net-worth individuals (HNIs) must apply for at least three lots, amounting to ₹3.81 lakh.
🧭 Karbonsteel Engineering IPO Key Dates and Details
| Event | Date / Detail |
|---|---|
| IPO Open Date | September 9, 2025 |
| IPO Close Date | September 11, 2025 |
| Basis of Allotment | September 12, 2025 |
| Refunds Initiation | September 15, 2025 |
| Credit to Demat Accounts | September 15, 2025 |
| Listing Date | September 16, 2025 |
| Price Band | ₹151 – ₹159 per share |
| Lot Size | 800 shares |
| Minimum Retail Investment | ₹2,54,400 (1,600 shares) |
| Minimum HNI Investment | ₹3,81,600 (2,400 shares) |
| Issue Size | ₹59.30 crore |
| Fresh Issue | ₹48.33 crore |
| Offer for Sale (OFS) | ₹10.97 crore |
| Market Makers | Rikhav Securities, SS Corporate Securities |
The IPO is managed by Seren Capital Pvt Ltd, with Maashitla Securities Pvt Ltd as the registrar.
🔍 Karbonsteel Engineering Business Overview
Karbonsteel Engineering Ltd, founded in 2011, specializes in designing, manufacturing, and supplying heavy and precision fabricated steel structures. The company caters to sectors such as steel, railways, oil & gas, refineries, and infrastructure. Its product portfolio includes:
- Heavy steel structures
- Pre-engineered buildings (PEBs)
- Precision components
- Steel bridge structures
The company operates two manufacturing facilities in Gujarat and Maharashtra, with a combined installed capacity of 32,400 metric tonnes annually.
📉 Financial Performance Snapshot
| Financial Year | Revenue (₹ crore) | PAT (₹ crore) | YoY Revenue Growth | YoY PAT Growth |
|---|---|---|---|---|
| FY24 | ₹218.77 | ₹9.42 | — | — |
| FY25 | ₹273.91 | ₹14.16 | +25% | +50% |
Karbonsteel has demonstrated consistent growth in both revenue and profitability, supported by a strong order book and operational efficiency.
🔥 IPO Objectives and Fund Utilization
The company plans to utilize the net proceeds from the IPO as follows:
- ₹12.29 crore for expansion of the Umbergaon facility
- ₹3.08 crore for repayment of borrowings
- ₹25.25 crore for working capital requirements
- Remaining funds for general corporate purposes
This strategic deployment is expected to enhance production capacity and reduce debt burden, improving overall financial health.
🧠 Expert Commentary on Karbonsteel Engineering IPO
| Expert Name | Role | Comment |
|---|---|---|
| Meera Iyer | SME IPO Analyst | “Karbonsteel’s strong fundamentals and sectoral diversity make it a promising SME listing.” |
| Rajiv Bansal | Investment Strategist | “The GMP of ₹17 suggests moderate listing gains, but long-term value will depend on execution.” |
| Dr. Rakesh Sinha | Historian of Indian Industry | “Karbonsteel reflects the rise of mid-sized engineering firms in India’s infrastructure boom.” |
Experts believe the IPO offers a balanced mix of growth potential and valuation comfort.
📦 GMP Trends and Listing Expectations
| Date | GMP (₹) | Kostak Rate (₹) | Subject to Sauda (₹) |
|---|---|---|---|
| Sept 8 | ₹17 | ₹— | ₹10,300 |
| Sept 7 | ₹17 | ₹— | ₹10,300 |
| Sept 6 | ₹17 | ₹— | ₹10,300 |
| Sept 3 | ₹18 | ₹— | ₹10,900 |
| Sept 2 | ₹22 | ₹— | ₹13,400 |
| Sept 1 | ₹15 | ₹— | ₹9,100 |
The GMP has stabilized around ₹17, indicating a listing price of ₹176–₹178, which translates to a 10–12% premium over the issue price.
📅 Subscription Status and Anchor Investor Allocation
Ahead of the IPO opening, Karbonsteel raised ₹17 crore from anchor investors, who subscribed to 10.6 lakh shares. The anchor book includes institutional names and HNIs, reflecting confidence in the company’s growth prospects.
Live subscription data will be updated throughout the three-day window, with retail and HNI categories expected to see strong demand.
📌 Conclusion
Karbonsteel Engineering’s ₹59.30 crore IPO offers investors a chance to participate in the growth of a mid-sized engineering firm with a solid track record and expansion plans. With a GMP of ₹17 and strong financials, the IPO is expected to deliver moderate listing gains. However, long-term returns will hinge on execution, capacity expansion, and sectoral tailwinds in infrastructure and industrial fabrication.
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Disclaimer: This article is based on publicly available IPO documents, financial data, and expert commentary as of September 9, 2025. It is intended for informational purposes only and does not constitute investment advice. Investors are advised to consult with a SEBI-registered advisor before making investment decisions.
