India’s largest integrated maker of solar mounting structures and tracker components opens its Rs 875 crore mainboard issue on September 9
Karamtara Engineering Ltd (KEL), a Mumbai-based, Tarapur-and-Kutch-manufacturing solar-and-transmission structural specialist incorporated in 1996, opens for subscription on September 9 with the issue closing on September 11.
The firm is a backward-integrated manufacturer of products for the renewable-energy and transmission-line sectors — a direct play on India’s solar and grid build-out.
It is the largest integrated manufacturer in India by installed capacity for solar mounting structures and tracker components in FY26, offering a diverse portfolio that lets it serve as a one-stop shop for solar structures (both fixed-tilt and trackers), fasteners, and overhead transmission-line (OHTL) hardware fittings and accessories.
The backward integration is the core moat. KEL operates in-house galvanizing facilities with a capacity of 2,76,800 MTPA, plus two in-house rolling-mill furnaces that produce various grades of structural steel (angles, channels, beams) used across solar and transmission products.
This vertical integration delivers quality control, reduced lead times, cost benefits and time efficiency — significant competitive advantages in a commoditising space where control over the steel-to-structure chain sets it apart.
KEL serves customers across North America, Europe, Asia, Africa, Australia and Latin America — with exports comprising ~41% of FY26 revenue — and counts OEMs, EPC companies and IPPs among its customers, supported by on-ground sales teams in the US, Europe and Saudi Arabia.
It operates a manufacturing facility in Italy for hardware fittings, and is setting up a new facility in Saudi Arabia for solar torque tubes, tracker piles and piers, and lattice towers.
As of March 2026, it ran 13 facilities (12 in India, 1 in Italy) with an installed capacity of 8,89,200 MTPA (including 4,92,000 MTPA for solar products, ~16.8 GW) plus 4,80,000 pieces, with most Indian plants clustered in Tarapur MIDC (Maharashtra) and Bhachau, Kutch (Gujarat) for operational synergies.
KEL forayed into wind energy in CY25 (angular and tubular towers for wind turbines) and plans to enter battery energy storage systems (BESS) and prefabricated engineered building (PEB) structures — augmenting its existing verticals. The promoters are Tanveer Singh and Rajiv Singh.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 9, 2026 |
| Issue Closes | September 11, 2026 |
| Listing | BSE, NSE (Mainboard) |
| Listing Date | September 17, 2026 |
| Price Band | Rs 241 – Rs 254 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 875 crore (~3,44,48,817 shares) |
| Fresh Issue | Rs 675 crore |
| Offer for Sale | Rs 200 crore |
| Min. Application | 59 shares (multiples thereafter) |
| Min. Retail Investment | Rs 14,986 |
| Post-Issue Market Cap | Rs 8,174 crore |
| QIB / Retail / NII | 50% / 35% / 15% |
| Lead Managers | JM Financial, ICICI Securities, IIFL Capital Services |
| Registrar | MUFG Intime India Pvt. Ltd. |
The issue is majority fresh (Rs 675 crore) with a Rs 200 crore OFS (Rs 100 crore each from promoters Tanveer Singh and Rajiv Singh). From the net fresh proceeds, KEL will utilise Rs 600 crore for prepayment or repayment of borrowings, with the remainder for general corporate purposes.
The large debt-reduction component is a clear positive — post-repayment the D/E ratio is expected to fall to about 0.2x (from FY26’s 0.8x), materially strengthening an already-lean balance sheet.
Post-issue, promoter and promoter group shareholding falls from 92.1% to 82.0%, with public shareholding rising to 18.0%.
Price Band Analysis
At the upper band of Rs 254, on FY26 earnings the issue is valued at a post-issue P/E of about 35.7x and a P/BV of about 6.1x. On a pre-issue basis, the FY26 P/E was 32.8x, EV/EBITDA 16.8x.
SBI Securities notes there are no like-for-like listed peers, so the valuation stands on its own market position and growth profile rather than a peer multiple.
GMP Watch
Grey-market interest has been healthy and steady. In tracked data, the Karamtara Engineering IPO GMP ranged from around ₹20 (September 4) to a high of ₹58 (September 8), and stood at around ₹40–58 in the days around opening — implying a listing gain of roughly 15–23% over the Rs 254 upper band (an indicative listing near ₹294).
As always, GMP is unofficial, unregulated and SEBI-unendorsed, and can move before listing — treat it as one data point rather than a forecast, with final-day QIB demand the more reliable tell.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from Operations | 2,425 | 3,158 | 4,312 |
| EBITDA | 263 | 347 | 498 |
| EBITDA Margin (%) | 10.8 | 11.0 | 11.6 |
| PAT | 103 | 139 | 229 |
| PAT Margin (%) | 4.2 | 4.4 | 5.3 |
| RoE (%) | 18.5 | 14.2 | 18.8 |
| RoCE (%) | 21.7 | 20.5 | 20.1 |
The growth has been strong and, importantly, broad-based rather than a one-year pre-IPO spike. Revenue rose from Rs 2,425 crore in FY24 to Rs 4,312 crore in FY26, with PAT climbing from Rs 103 crore to Rs 229 crore (up ~64% in FY26).
SBI Securities pegs the FY24–FY26 Revenue/EBITDA/PAT CAGR at 33.3%/37.6%/49.3% — a genuinely strong compounding record.
Margins have expanded gradually and consistently — EBITDA margin from 10.8% to 11.6%, PAT margin from 4.2% to 5.3% — reflecting scale and the backward-integration benefit rather than an artificial jump.
Return ratios are healthy (RoE ~18.8%, RoCE ~20.1% in FY26), and the balance sheet is set to de-leverage sharply after the Rs 600 crore repayment. The company paid a dividend of Rs 42.22 per share in FY25.
According to a note by SBI Securities, KEL “is India’s largest integrated manufacturer of solar mounting structures and tracker components by installed capacity in FY26… Historically, the company has recorded Revenue/EBITDA/PAT CAGR of 33.3%/37.6%/49.3% respectively over the FY24–FY26 period…”
“…..Going ahead, the company intends to utilize Rs 600 cr of the fresh proceeds to repay its borrowings, which shall further de-leverage its already thin balance sheet (D/E ratio of 0.2x post-repayment versus FY26 D/E of 0.8x).”
“…At the upper price band of Rs 254, the issue is valued at FY26 P/E multiple of 35.7x based on post-issue capital. There are no like-for-like listed peers available for the company. We recommend investors to Subscribe to the issue for long-term investment horizon.”
Risks to Consider
Full valuation is the headline caveat. At ~35.7x FY26 earnings with no like-for-like listed peer to anchor it, the pricing already embeds substantial growth expectations and leaves limited room for execution disappointment.
Geopolitical and export-concentration risk is significant. KEL derived ~40.5% of FY26 revenue (and ~51.3% in FY25) from export markets, so adverse regulatory or geopolitical developments abroad — tariffs, trade policy, US solar-import rules — could hit business and profitability.
Supply-chain and supplier-concentration risk is structural. Operations are exposed to raw-material (steel) price volatility, and the top 5 suppliers contributed ~70.8% of purchases in FY26 — so an inability to procure the required quantity and quality at competitive prices could pressure margins.
New-vertical execution risk applies. KEL is foraying into PEB, BESS and wind — an inability to grow these new verticals as intended could adversely affect operations, and the Saudi and structural-steel facility expansions carry ramp-up risk.