Karamtara Engineering Powers Up for Rs 1,750 Crore IPO

Karamtara Engineering has filed for an IPO to raise Rs 1,750 crore. The IPO comprises a fresh share issue worth Rs 1,350 crore and an offer for sale by promoters of Rs 400 crore. A significant part of the funds will be used to repay debt and embark on expansion into wind energy.

Karamtara Engineering, a power transmission firm, has filed preliminary documents with SEBI to secure approval for raising Rs 1,750 crore via an IPO. This comprises a Rs 1,350 crore fresh share issue and a Rs 400 crore offer for sale by promoters, Tanveer and Rajiv Singh.

The fresh issue's proceeds, notably Rs 1,050 crore, will be directed towards debt repayment and general corporate purposes. Karamtara specializes in manufacturing products for renewable energy and transmission line markets, offering a broad product range, including solar structures and transmission line accessories.

The company plans to expand into wind energy, with a facility set to produce wind turbine towers by fiscal 2026. Karamtara's fiscal performance showed a significant leap in Profit After Tax to Rs 102.65 crore, supported by increased revenues of Rs 2,425.15 crore.

(With inputs from agencies.)