Karbonsteel Engineering IPO is set to open on September 9, 2025, and will close on September 11, 2025. This is a Book Built Issue through which the company aims to raise approximately ₹59.30 crores, comprising a fresh issue of ₹48.33 crores and an Offer for Sale (OFS) of up to 6,90,000 equity shares, each with a face value of ₹10.
The IPO price band is fixed between ₹151 to ₹159 per share, with a retail quota of 35%, Qualified Institutional Buyers (QIB) quota of 50%, and High Net Worth Individual (HNI) quota of 15%. The shares of Karbonsteel Engineering are expected to list on BSE SME on September 16, 2025, while the IPO allotment date is scheduled for September 12, 2025.
Karbonsteel Engineering IPO Financial Performance
- Revenue: ₹273.91 crores in FY2025, up from ₹218.77 crores in FY2024.
- Profit: ₹14.16 crores in FY2025, compared to ₹9.42 crores in FY2024.
Karbonsteel Engineering IPO Date & Price Band Details
Karbonsteel Engineering IPO is set to open on September 9, 2025, and will close on September 11, 2025. This Book Built Issue has a face value of ₹10 per equity share and a price band of ₹151 to ₹159. The company aims to raise approximately ₹59.30 crores, including a fresh issue of ₹48.33 crores and an Offer for Sale (OFS) of 6,90,000 shares. The lot size is 800 shares, and the IPO is expected to list on BSE SME. Investors are advised to act early for potential long-term gains.
| Category | Details |
|---|---|
| IPO Open Date: | September 9, 2025 |
| IPO Close Date: | September 11, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹151 to ₹159 Per Share |
| Issue Size: | Approx ₹59.30 Crores |
| Fresh Issue: | Approx ₹48.33 Crores |
| Offer for Sale: | Approx 6,90,000 Equity Shares |
| Lot Size: | 800 Shares |
| Issue Type: | Book Built Issue |
| IPO Listing: | BSE SME |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Karbonsteel Engineering IPO Market Lot
For the Karbonsteel Engineering IPO, retail investors can apply for 2 lots (1,600 shares) worth ₹2,54,400. S-HNI investors can apply for 3–7 lots (2,400–5,600 shares) worth ₹3,81,600–₹8,90,400, while B-HNI investors require a minimum of 8 lots (6,400 shares) totaling ₹10,17,600, ensuring proper planning for the BSE SME listing.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 1,600 | ₹2,54,400 |
| Retail Maximum | 2 | 1,600 | ₹2,54,400 |
| S-HNI Minimum | 3 | 2,400 | ₹3,81,600 |
| S-HNI Maximum | 7 | 5,600 | ₹8,90,400 |
| B-HNI Minimum | 8 | 6,400 | ₹10,17,600 |
The subscription status will be updated after the bidding process begins on September 9, 2025.
Karbonsteel Engineering IPO IPO Reservation
For the Karbonsteel Engineering IPO, the total 37,29,600 shares are allocated across different investor categories. Market Makers receive 1,88,000 shares (5.04%), QIBs get 17,68,800 shares (47.43%), including Anchors with 10,60,800 shares (28.44%). Non-Institutional Investors (NII) are offered 5,32,800 shares (14.29%), split into bNII > ₹10L: 3,55,200 shares (9.52%) and sNII < ₹10L: 1,77,600 shares (4.76%). Retail investors are allocated 12,40,000 shares (33.25%), completing the 100% share distribution.
| Investor Category | Share Offered | % Shares |
|---|---|---|
| Market Maker | 1,88,000 Shares | 5.04% |
| QIB Shares Offered | 17,68,800 Shares | 47.43% |
| Anchor Investor | 10,60,800 Shares | 28.44% |
| QIB (Ex. Anchor) | 7,08,000 Shares | 18.98% |
| NII Shares Offered | 5,32,800 Shares | 14.29% |
| bNII > ₹10L | 3,55,200 Shares | 9.52% |
| sNII < ₹10L | 1,77,600 Shares | 4.76% |
| Retail Shares Offered | 12,40,000 Shares | 33.25% |
| Total Shares Offered | 37,29,600 Shares | 100.00% |
Karbonsteel Engineering IPO Anchor Investors
For the Karbonsteel Engineering IPO, the Anchor Bidding opened on September 4, 2025. Anchor investors have been allocated 10,60,800 shares, totaling ₹16.87 crores. The lock-in period ends in two phases: 50% of shares on October 12, 2025, and the remaining 50% on December 11, 2025. The Anchor Investors List is available in PDF format.
| Type | Details |
|---|---|
| Anchor Bidding Date | September 4, 2025 |
| Anchor Investors List | Click Here |
| Shares Offered | 10,60,800 Shares |
| Anchor Size | 16.87 Cr. |
| lock-in period end date 50% shares (30 Days) | October 12, 2025 |
| lock-in period end date 50% shares (90 Days) | December 11, 2025 |
Karbonsteel Engineering IPO Allotment & Listing Dates
The Karbonsteel Engineering IPO will open on September 9, 2025, and close on September 11, 2025, with a bidding cut-off at 5 PM. The basis of allotment will be finalized on September 12, 2025, followed by refunds and credit to Demat accounts on September 15, 2025. The IPO is expected to list on September 16, 2025.
| Type | Date |
|---|---|
| IPO Open Date: | September 9, 2025 |
| IPO Close Date: | September 11, 2025 |
| Basis of Allotment: | September 12, 2025 |
| Refunds: | September 15, 2025 |
| Credit to Demat Account: | September 15, 2025 |
| IPO Listing Date: | September 16, 2025 |
| IPO Bidding Cut-off Time: | September 11, 2025 – 5 PM |
Karbonsteel Engineering IPO: Promoters and Holding Pattern
The promoters of Karbonsteel Engineering are Shrenik Kirit Shah and Mittal Shrenik Shah. Before the IPO, the promoter holding was 1,11,02,222 shares (72.17%), which will decrease to 1,41,41,822 shares (56.66%) after the issue, reflecting the post-IPO shareholding structure.
| Particular | Shares | % Share |
|---|---|---|
| Promoter Holding Pre Issue | 1,11,02,222 | 72.17% |
| Promoter Holding Post Issue | 1,41,41,822 | 56.66% |
Karbonsteel Engineering IPO Company Financial Report
Karbonsteel Engineering has shown strong financial growth over the past three years. Revenue increased from ₹155.89 crores in 2023 to ₹273.91 crores in 2025, while expenses rose from ₹149.08 crores to ₹254.80 crores. Profit after tax (PAT) grew from ₹5.11 crores in 2023 to ₹14.16 crores in 2025, and total assets increased from ₹143.76 crores to ₹232.76 crores, reflecting steady business expansion.
| Period Ended | Revenue | Expense | PAT | Assets |
|---|---|---|---|---|
| 2023 | ₹155.89 | ₹149.08 | ₹5.11 | ₹143.76 |
| 2024 | ₹218.77 | ₹206.08 | ₹9.42 | ₹176.14 |
| 2025 | ₹273.91 | ₹254.80 | ₹14.16 | ₹232.76 |
Karbonsteel Engineering IPO Valuation – FY2025
The key financial ratios of Karbonsteel Engineering indicate strong fundamentals. The company reports a Return on Equity (ROE) of 27.19%, ROCE of 24.63%, EBITDA margin of 13.41%, and a PAT margin of 5.19%. The debt-to-equity ratio stands at 1.30, with a basic EPS of ₹12.78 and a Net Asset Value (NAV) of ₹54.47. The Return on Net Worth (RoNW) is 23.45%, highlighting solid financial performance for IPO investors.
| KPI | Values |
|---|---|
| ROE: | 27.19% |
| ROCE: | 24.63% |
| EBITDA Margin: | 13.41% |
| PAT Margin: | 5.19% |
| Debt to equity ratio: | 1.30 |
| Earning Per Share (EPS): | ₹12.78 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 23.45% |
| Net Asset Value (NAV): | ₹54.47 |
Karbonsteel Engineering IPO Peer Group Comparison
In comparison with its peers, Karbonsteel Engineering demonstrates competitive fundamentals. While Atmastco Limited reports an EPS of 7.80, PE ratio of 31.28, RoNW of 15.15%, and income of ₹289.57 crores, Goodluck India Limited shows a higher EPS of 50.66, PE ratio of 19.32, RoNW of 12.63%, and income of ₹3,935.89 crores, highlighting Karbonsteel’s growth potential within its sector.
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| Atmastco Limited | 7.80 | 31.28 | 15.15% | 64.14 | 289.57 Cr. |
| Goodluck India Limited | 50.66 | 19.32 | 12.63% | 461.17* | 3935.89 Cr. |
Objects of the Issue & Utilisation of proceeds – Karbonsteel Engineering IPO
The proceeds from the Karbonsteel Engineering IPO will be utilized for multiple purposes. Around ₹12.29 crores (25.4%) will fund capital expenditure to expand the Umbergaon facility by constructing new sheds. ₹3.08 crores (6.4%) will be used for repayment of certain borrowings, ₹25.25 crores (52.2%) for working capital requirements, and ₹7.71 crores (16%) for general corporate purposes.
| Purpose | Crores | %Change |
|---|---|---|
| Funding of capital expenditure towards expansion of existing Umbergaon facility through construction of new sheds | 12.29 | 25.4% |
| Repayment of a portion of certain borrowings availed by the Company | 3.08 | 6.4% |
| To meet the Working Capital requirements | 25.25 | 52.2% |
| General corporate purposes | 7.71 | 16.0% |
Karbonsteel Engineering Company Overview, Strengths, and Risks
Karbonsteel Engineering Limited is a structural engineering and fabrication company based in India. Incorporated in 2011, the company specializes in the design, manufacturing, and assembly of heavy and precision steel structures. Its products and solutions cater to a wide range of industries and large-scale projects, including:
- Heavy Steel Fabricated Structures: Beams, columns, platforms, pipe racks, and crane girders for industrial and infrastructure projects.
- Precision Fabricated Steel Structures: Customized components for industrial units and specialized equipment.
- Steel Bridge Structures: Components for railway bridges and road bridges, including work on high-speed rail projects. The company’s Umbergaon facility is approved by the Research Designs and Standards Organization (RDSO), a key certification for railway projects in India.
- Pre-Engineered Buildings (PEBs): Efficient and cost-effective structural systems for industrial and commercial use.
Karbonsteel operates two manufacturing facilities: one in Umbergaon, Gujarat, and another in Khopoli, Maharashtra. As of early 2025, the company had a workforce of 349 employees.
The company has shown consistent financial growth, with a revenue increase of approximately 25% and a profit after tax (PAT) surge of about 50% between the fiscal years ending in March 2024 and March 2025. It has a strong order book, valued at ₹330 crore as of July 2025.
Strengths
- Proven Capabilities: The company has a demonstrated ability to execute large-scale, complex industrial and infrastructure projects, supported by a healthy order book.
- In-House Manufacturing and Testing: Operating two advanced facilities with in-house manufacturing and testing capabilities allows Karbonsteel to maintain strict quality control, ensure consistency, and meet project deadlines. The RDSO approval is a significant competitive advantage for securing railway projects.
- Experienced Management: Karbonsteel is led by a management team with extensive domain knowledge and over 19 years of experience in the steel industry.
- Strong Customer Relationships: The company has built long-term relationships with a base of reputed clients, which helps secure repeat business.
- Financial Growth: Karbonsteel has a good track record of return on equity (ROE) and has shown strong growth in revenue and profit in recent fiscal years. Its debt-to-equity ratio is currently at 1.30, and it is actively working to reduce debt through its IPO proceeds.
- Industry Tailwinds: The company is well-positioned to benefit from India’s infrastructure and industrial development, driven by government initiatives like the National Infrastructure Pipeline and “Make in India.”
Risks
- Client Concentration: A significant portion of the company’s revenue (almost 99%) comes from its top 10 clients, making it heavily dependent on these relationships.
- Geographical Concentration: A large majority of the company’s revenue (98%) is derived from a single state, Gujarat, which exposes it to regional economic and policy risks.
- High Receivables and Working Capital Intensive Business: The nature of the business requires substantial working capital, and the company has high receivables, which can strain cash flow. Past execution delays have also contributed to cash flow issues.
- Supplier Dependence: The company is dependent on a small number of key suppliers, with the top 10 accounting for approximately 67% of raw material purchases.
- Raw Material Price Volatility: The profitability of the company is vulnerable to fluctuations in the prices of raw materials, particularly steel. While it incorporates cost escalation clauses in contracts to mitigate this, the risk remains.
- High Debt: The company has a high level of borrowings, although it plans to use a portion of its IPO proceeds to reduce this debt and improve its financial health.
- Litigation and Compliance: The company has outstanding litigations and has experienced delays in statutory and tax filings, which could lead to potential penalties and legal issues.
Karbonsteel Engineering IPO Registrar
Maashitla Securities Pvt.Ltd.
Phone: +91-11-45121795-96
Email: investor.po@maashitla.com
Website: https://maashitla.com/
Karbonsteel Engineering IPO Lead Managers aka Merchant Bankers
- Seren Capital Pvt.Ltd.
Karbonsteel Engineering Company Address
Karbonsteel Engineering Ltd.
B-8 Ratnadeep Cosmopolitan Chs Ltd,
140-141 S.V. Road, Nr. Shoppers Stop, Andheri (W),
Mumbai, 400058
Mumbai, Maharashtra, 400058
Phone: +91-22- 61872821
Email: info@karbonsteel.com
Website: https://www.karbonsteel.com/
FAQs about Karbonsteel Engineering IPO
The IPO will open for subscription on September 9, 2025, and close on September 11, 2025. The allotment is expected to be finalized on September 12, 2025, and the shares will be listed on BSE SME on September 16, 2025.
The price band is fixed at ₹151 to ₹159 per equity share. The market lot size is 800 shares, which means a retail investor needs to apply for a minimum of 2 lots (1,600 shares) for a total investment of ₹2,54,400 at the upper price band.
The total issue size is approximately ₹59.30 crores. This includes a fresh issue of ₹48.33 crores and an Offer for Sale (OFS) of 6,90,000 equity shares.
The company plans to use the funds for:
Capital expenditure to expand its Umbergaon facility (₹12.29 crores).
Repayment of certain borrowings (₹3.08 crores).
Meeting working capital requirements (₹25.25 crores).
General corporate purposes (₹7.71 crores).
Before the IPO, the promoter holding was 72.17%. After the issue, the promoter’s stake will be reduced to 56.66%.
The promoters of the company are Mr. Shrenik Kirit Shah and Ms. Mittal Shrenik Shah.
The shares of Karbonsteel Engineering will be listed on the BSE SME exchange.
The company has shown consistent growth. In FY2025, its revenue was ₹273.91 crores and profit after tax (PAT) was ₹14.16 crores. This is a significant increase from FY2024, where revenue was ₹218.77 crores and PAT was ₹9.42 crores.
Strengths:
Strong order book (₹330 crores as of July 2025).
In-house manufacturing and testing facilities, including an RDSO-approved plant.
Experienced management and strong customer relationships.
Risks:
High dependence on a limited number of clients (top 10 clients account for ~99% of revenue).
Geographical concentration of revenue in Gujarat.
High working capital requirements and high debt.
Maashitla Securities Pvt. Ltd. is the registrar for the IPO.
Disclaimer: This content is provided strictly for educational and informational purposes only. The securities or investments mentioned are based on publicly available information and should not be construed as investment advice or recommendations. Investors are advised to consult with their financial advisor before making any investment decisions.
