Karbonsteel Engineering, a company specializing in heavy and precision fabricated steel structures, has opened its Initial Public Offering (IPO) for subscription. The IPO, valued at Rs 59.30 crore, comprises a fresh issue of Rs 48.33 crore and an offer-for-sale of Rs 10.97 crore.

IPO Details

• Price Band: Rs 151-159 per share
• Subscription Period: Open until September 11
• Listing Date: Scheduled for September 16 on BSE SME platform
• Grey Market Premium: Approximately 12% over the upper price band

Anchor Investment

The company has successfully raised Rs 17.00 crore from anchor investors, who have subscribed to 10.6 lakh shares.

Company Profile

Karbonsteel Engineering designs, manufactures, and supplies heavy and precision fabricated steel structures across various industries, including:

• Steel
• Railways
• Oil and gas
• Refineries
• Infrastructure

The company operates two manufacturing facilities:

1. Gujarat
2. Maharashtra

These facilities have a combined annual capacity of 32,400 metric tonnes.

Financial Performance

The company has shown significant growth:

• Revenue increased by 25% year-over-year
• Profit after tax grew by 50% year-over-year

Use of Proceeds

The funds raised from the IPO will be allocated as follows:

Investors and market participants will be closely watching the performance of this IPO in the coming days, particularly given the positive grey market premium.

Karbonsteel Engineering, a structural engineering and fabrication company, has unveiled plans for an initial public offering (IPO) on the BSE SME exchange. The company aims to raise ₹59.00 crore through this offering, marking a significant step in its growth strategy.

IPO Details

The IPO will involve the issuance of 37.29 lakh equity shares, with a price band set between ₹151.00 and ₹159.00 per share. Investors interested in participating can do so with a minimum lot size of 800 equity shares.

Company Profile

Karbonsteel Engineering specializes in the design, manufacture, and assembly of heavy and precision steel structures. The company's expertise extends across various sectors, including:

• Steel plants
• Refineries
• Oil & gas facilities
• Railway bridges
• Industrial infrastructure

Notably, the company boasts an RDSO-approved facility for bridge girders, underlining its capabilities in the infrastructure sector.

Utilization of Funds

The net proceeds from the IPO are earmarked for several key purposes:

1. Capital expenditure for expanding the existing Umbergaon facility through new shed construction
2. Debt reduction
3. Meeting working capital requirements
4. General corporate purposes

IPO Timeline and Management

The anchor portion of the IPO is scheduled to open for subscription on Thursday. Seren Capital has been appointed as the lead manager for this offering, while Maashitla Securities will serve as the registrar.

Market Impact

This IPO represents a significant development in the SME sector, particularly for companies specializing in structural engineering and fabrication. Karbonsteel Engineering's public listing could potentially enhance its market position and provide the necessary capital for expansion and debt reduction.

Investors and market watchers will be keenly observing this IPO, as it offers insights into the appetite for SME stocks in the current market environment, especially in the infrastructure and engineering sectors.