Karbonsteel Engineering IPO: The initial public offering (IPO) of structural engineering and fabrication company Karbonsteel Engineering opened for public subscription on Tuesday, September 9. The SME IPO is a combination of fresh issue of 30,39,600 shares and offer for sale of 6,90,000 shares. Promoters Shrenik Kirit Shah and Mittal Shrenik Shah are the selling shareholders, offloading 4,14,000 and 2,76,000 shares, respectively, in the issue. The grey market appears to be positive about the issue, as the latest grey market premium (GMP) indicates the stock could be listed at a decent premium of 12 per cent.
Karbonsteel Engineering IPO subscription status
By 10:30 am on Tuesday, the issue had seen an overall subscription of 0.30 times, with the retail portion booked 0.06 times, and the segment reserved for NIIs subscribed to 1.27 times. QIB’s portion had not seen any subscription till then.
Karbonsteel Engineering IPO details
1. Karbonsteel Engineering IPO GMP: According to market sources, the latest grey market premium (GMP) of Karbonsteel Engineering shares was ₹19. The latest GMP indicates the stock could be listed at a premium of 12 per cent.
2. Karbonsteel Engineering IPO date: The SME IPO opened for subscription on Tuesday, September 9, and will end on Thursday, September 11.
3. Karbonsteel Engineering IPO price: The price band of the public issue has been fixed at ₹151 to ₹159 per equity share.
4. Karbonsteel Engineering IPO size: The company plans to raise ₹48.33 crore from the fresh issue of shares, which it will use to fund capital expenditures towards expanding the existing Umbergaon facility through the construction of new sheds, repayment of a portion of certain borrowings, working capital requirements, and general corporate purposes. The company will not receive any proceeds of the OFS from the selling shareholders.
5. Karbonsteel Engineering IPO lot size: Retail investors can bid for a minimum and maximum of 1,600 shares.
6. Karbonsteel Engineering IPO reservation: The biggest share of the issue is reserved for QIBs, as they have been offered 17,68,800 shares (47.43 per cent of the net issue). Retail investors come next. Some 12,40,000 shares, or 33.25 per cent of the net issue, are reserved for retail investors. The company has reserved 5,32,800 shares (14.29 per cent of the net issue) for NIIs. The remaining 5 per cent is reserved for the market maker.
7. Karbonsteel Engineering IPO allotment date: The IPO is closing on Thursday, September 11. So, the company is expected to finalise the share allotment on Friday, September 12. Successful bidders can expect shares of the company in their demat accounts on the next business day on Monday, September 15, and bidders who fail to get the allocation may get a refund on the same day.
8. Karbonsteel Engineering IPO book-running lead manager and registrar: According to the issue’s Red Herring Prospectus (RHP), Seren Capital Private Limited is the book-running lead manager, and Maashitla Securities Private Limited is the registrar.
9. Karbonsteel Engineering IPO listing: As per SEBI’s T+3 rule of IPO listing, the IPO is proposed for listing on the BSE SME on Tuesday, September 16.
10. Karbonsteel Engineering business overview: According to the RHP, the company is a structural engineering and fabrication company engaged primarily in the design, fabrication and assembly of heavy and precision steel structures.
Its revenue from operations and profit have seen a sustained rise over the last three financial years.
According to the RHP, the company’s revenue from operations in FY23 was ₹155.6 crore, which rose to ₹218.34 crore in FY24 and ₹273.05 crore in FY25.
Profit in FY23 was ₹5.11 crore, which increased to ₹9.42 crore in FY24 and ₹14.16 crore in FY25.
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