Karamtara Engineering IPO: GMP points to 26% listing gain; issue subscribed 2.75 times

Karamtara Engineering's ₹875 crore IPO is attracting strong investor interest, with the issue subscribed 2.75 times so far. The stock is also commanding a grey market premium of ₹67, indicating a potential listing gain of about 26% over the upper price band of ₹254 per share.

Based on the latest GMP, the shares could list around ₹321 apiece. However, GMP is an unofficial indicator of demand in the unlisted market and may not accurately reflect the eventual listing price.

The QIB portion has been subscribed 2.18 times, while the NII segment has seen demand of 4.29 times. The retail quota has been booked 2.42 times.

Karamtara Engineering IPO: What investors should know

Karamtara Engineering manufactures solar mounting structures, tracker components, transmission line towers, fasteners and other products for the renewable energy and power transmission sectors. Solar products accounted for 78.9% of its FY26 revenue, while exports contributed 40.5%.

The company has a backwards-integrated manufacturing model, with in-house steel rolling and galvanising capabilities. It serves customers across more than 50 countries and is also planning manufacturing capabilities in Saudi Arabia.

Ahead of the IPO, Karamtara raised ₹262.5 crore from anchor investors by allotting 1.03 crore shares at ₹254 apiece, the upper end of the price band.

Brokerages SBI Securities and Anand Rathi have recommended subscribing to the issue for the long term. SBI Securities cited the company's position in solar mounting structures and tracker components, backward integration and financial performance, while Anand Rathi highlighted its diversified product portfolio and export presence.

The IPO comprises a fresh issue of ₹675 crore and an Offer For Sale (OFS) of ₹200 crore. Karamtara plans to use ₹600 crore from the fresh issue proceeds to repay borrowings.

At the upper price band, the issue is valued at 35.7 times FY26 earnings. The company reported a 64% year-on-year rise in FY26 profit to ₹228.75 crore, while total income stood at ₹4,316.36 crore.

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