365Telugu.com online news, January 27th,2025: Power transmission company Karamtara Engineering has submitted its preliminary documents to the Securities and Exchange Board of India (Sebi), seeking approval to raise ₹1,750 crore through an Initial Public Offering (IPO).
The proposed IPO consists of a fresh issue of shares worth ₹1,350 crore and an Offer for Sale (OFS) of shares amounting to ₹400 crore by the promoters, as outlined in the Draft Red Herring Prospectus (DRHP).
As part of the OFS, promoters Tanveer Singh and Rajiv Singh will each sell ₹200 crore worth of shares.
Currently, the promoters hold a 94.8% stake in the company.
The funds raised from the fresh issue, totaling ₹1,050 crore, will be used for debt repayment, with a portion allocated for general corporate purposes.
Karamtara Engineering is a vertically integrated manufacturer of products for the renewable energy and power transmission sectors. The company offers a wide range of products, making it a one-stop solution provider for solar structures (both fixed-tilt and trackers).
Its offerings also include lattice structures for transmission lines, fasteners for solar, wind, transmission, and industrial sectors, as well as overhead transmission line hardware and accessories.
In its draft filing, the company highlighted its expansion into the wind energy sector. It is establishing a facility to manufacture tubular towers for wind turbines, which is expected to be operational by the first quarter of fiscal 2026.
Financially, the company reported a Profit After Tax (PAT) of ₹102.65 crore for FY2024, more than double the ₹42.36 crore recorded in FY2023. Revenues rose to ₹2,425.15 crore from ₹1,600.31 crore in the previous year.
The book-running lead managers for the IPO are JM Financial, ICICI Securities, and IIFL Capital, while MUFG Intime India (formerly Link Intime India Private Limited) has been appointed as the registrar for the issue.