Karbonsteel Engineering IPO Key Dates

Anchor Investor Subscription  
IPO opens on 8 Sept 2025
IPO Closes on 10 Sept 2025
Allotment on 11 Sept 2025
Credit of shares on 12 Sept 2025
Tentative Listing on 15 Sept 2025

Karbonsteel Engineering IPO Condenses Verdict

Karbonsteel Engineering Ltd., engaged in fabrication of heavy steel structures and PEBs, has shown consistent revenue and profit growth with healthy margin expansion. FY25 revenue crossed Rs.273.91 cr with PAT of Rs.14.16 cr. Borrowings remain high at Rs.78.55 cr, but cost efficiency has improved significantly (material cost down from 91.9% to 82.3% of sales). Valuation comfort will depend on IPO pricing, but business fundamentals appear strong and improving.

Final Subscription Tally 

Size Rs.  Crore 
QIB NII x RII x Total x Applications
         
Subscription Review:

About Karbonsteel Engineering

Incorporated in 2011, Karbonsteel Engineering Limited is engaged in providing engineering and fabrication solutions to diverse industries. The company specializes in the design, manufacture, and supply of heavy steel structures, pre-engineered buildings (PEBs), and steel bridge structures, catering to projects in steel plants, oil & gas refineries, railways, and large infrastructure expansions.

The company operates two manufacturing facilities in Gujarat and Maharashtra with a combined installed capacity of 32,400 MT per annum, enabling execution of large and complex fabrication assignments.

Product & Service Portfolio:

  • Heavy Steel Fabricated Structures: Designed for heavy-load industrial and infrastructure applications.

  • Precision Steel Structures: High-accuracy customized components for industrial and process sectors.

  • Steel Bridge Structures: Specialized fabrication for railway and road bridges with robust load capacity.

  • Pre-Engineered Buildings (PEBs): Cost-efficient and customized steel systems for industrial & commercial construction.

As of January 31, 2025, the company employed 349 people across its facilities.

Karbonsteel Engineering IPO Details

Sector: 

IPO opens on  8 August 2025
IPO closes on  10 August 2025
Issue Type Book Built Issue IPO
Issue Size 37,29,600 Shares /
Rs 59.30 Crore
* Fresh Issue
* Offer for Sale –
Market Maker Portion 188,000 Shares
Net offer to Public 35,41,600 Shares
Rs. 56.31 Crores
Face Value per share Rs. 10
Price Band Rs. 151-159
Employee discount  Rs. 0 per share
Retail Lot Size  800 Shares
Listing will at  BSE SME

How shares are being offered

Investor Category Shares Offered
Market Maker Shares Offered 1,88,000 (5.04%)
QIB Shares Offered 17,68,800 (47.43%)
NII (HNI) Shares Offered 5,32,800 (14.29%)
Retail Shares Offered 12,40,000 (33.25%)
Total Shares Offered 37,29,600 (100.00%)

How shares can be applied?

Application Lots Shares Amount
Rs.
Retail (Min) 2 1,600 2,54,400
Retail (Max) 2 1,600 2,54,400
S-HNI (Min) 3 2,400 3,81,600
S-HNI (Max) 7 5,600 8,90,400
B-HNI (Min) 8 6,400 10,17,600

 

Who are the Promoters of Karbonsteel Engineering IPO?

Shrenik Kirit Shah and Mittal Shrenik Shah are the promoters of the company.

The promoters hold 72.17% of the pre-IPO capital

What are the Objects of Karbonsteel Engineering IPO?

The Company proposes to utilize the Net Proceeds from Issue towards funding the following objects

+Funding of capital expenditure towards expansion of existing Umbergaon facility through construction of new sheds Rs. 12.29 Crore
+Repayment of a portion of certain borrowings availed by the Company Rs. 3.08 Crore
+ To meet the Working Capital requirements Rs. 25.25 Crore
+General Corporate purposes

Karbonsteel Engineering IPO Lead Managers

Seren Capital Pvt ltd

Registered Office of the Company
Karbonsteel Engineering Ltd.
B-8 Ratnadeep Cosmopolitan Chs Ltd,
140-141 S.V. Road, Nr. Shoppers Stop, Andheri (W),
Mumbai, 400058
Mumbai, Maharashtra, 400058

Email: info@karbonsteel.com

Who is the Registrar to the IPO?
Maashitla Securities Pvt ltd

Karbonsteel Engineering Financials Snapshot

Period Ended 31-Mar-25 31-Mar-24 31-Mar-23
Assets 232.76 176.14 143.76
Total Income 273.91 218.77 155.89
Profit After Tax 14.16 9.42 5.11
EBITDA 36.61 25.79 16.22
Net Worth 60.37 43.8 28.74
Reserves and Surplus 49.27 38.41 23.74
Total Borrowing 78.55 59.83 48.52
Amount in Rs. Crore

 

Performance Indicators

KPI Values
ROE 27.19%
ROCE 24.63%
Debt/Equity 1.3
RoNW 23.45%
PAT Margin 5.19%
EBITDA Margin 13.41%
Price to Book Value 2.92
EPS 12.75
PER 12.47

 

How Karbonsteel Engineering IPO compares with the Peers?

Company Name P/E (x) RoNW (%)
Karbonsteel Engineering 12.47 23.45
Atmastco Limited 31.28 15.15
Goodluck India Ltd 19.32 12.63

# 

Karbonsteel Engineering IPO Review

 by Paresh Gordhandas, CA & Research Analyst

Business Profile:
Established in 2011, Karbonsteel Engineering Ltd. provides engineering and fabrication solutions including heavy steel fabricated structures, precision components, steel bridges, and pre-engineered buildings (PEBs). It operates two manufacturing facilities in Gujarat & Maharashtra with an installed capacity of 32,400 MT per annum.

Financial Performance (Rs. Cr):

  • Revenue: Rs.155.89 (FY23) → Rs.218.77 (FY24) → Rs.273.91 (FY25)

  • PAT: Rs.5.11 (FY23) → Rs.9.42 (FY24) → Rs.14.16 (FY25)

  • EBITDA: Rs.16.22 (FY23) → Rs.25.79 (FY24) → Rs.36.61 (FY25)

  • Net Worth: Rs.28.74 (FY23) → Rs.43.80 (FY24) → Rs.60.37 (FY25)

  • Borrowings: Rs.48.52 (FY23) → Rs.59.83 (FY24) → Rs.78.55 (FY25)

Key Observations:

  • Growth: Revenue CAGR ~32% over FY23-25 with PAT nearly tripled.

  • Margins: EBITDA margin improved to 13.37% in FY25 (vs 10.4% in FY23), thanks to material cost optimization.

  • Balance Sheet:

    • Reserves have grown to Rs.49.27 cr.

    • Cash balance healthy at Rs.10.51 cr.

    • Receivables at Rs.60.50 cr = ~2.6 months’ sales → reasonable for EPC/fabrication industry.

    • Inventory at Rs.11.63 cr = ~15 days’ sales → efficient.

  • Risk Factor: Leverage remains high; debt-equity ~1.3x. Sustained growth will require careful working capital management.

Verdict:
Karbonsteel shows robust growth, improved margins, and efficient inventory management. Debt level is the main concern, but strong demand in steel structures/infra supports prospects. If IPO pricing is in line with peers, it can be considered a good medium-to-long-term investment.

 

What are the IPO dates?

👉 Opens Sep 8, 2025 | Closes Sep 10, 2025 | Allotment: Sep 11 | Listing: Sep 15 (BSE SME).

What is the IPO size & structure?

👉 Total size ₹59.30 cr (Fresh issue ₹48.33 cr, OFS ₹10.97 cr).

What is the IPO price band?

👉 Price band fixed at ₹151–₹159 per share.

What is the lot size & minimum investment?

👉 Lot size = 800 shares.
Retail minimum: 2 lots = 1,600 shares = ₹2,54,400 (upper price).
HNI minimum: 3 lots = 2,400 shares = ₹3,81,600.

Should investors apply?

👉 The company has shown 32% CAGR revenue growth, PAT nearly tripled in 3 years, margins improved, and inventory/receivables at reasonable levels. Debt remains high but manageable. At the given size, valuation appears fair for an infra-fabrication player.
Aggressive investors may apply for both listing gains & medium-term holding.

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