Karbonsteel Engineering IPO Key Dates
| Anchor Investor Subscription | |
| IPO opens on | 9 Sept 2025 |
| IPO Closes on | 11 Sept 2025 |
| Allotment on | 12 Sept 2025 |
| Credit of shares on | 15 Sept 2025 |
| Tentative Listing on | 16 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.56.31 Crore | ||||
| QIB | NII x | RII x | Total x | Applications |
| 121.61 | 85.99 | 46.84 | 76.59 | 45,691 |
| Subscription Review: strong subscriptin tally on the last day |
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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:
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Heavy Steel Fabricated Structures: Designed for heavy-load industrial and infrastructure applications.
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Precision Steel Structures: High-accuracy customized components for industrial and process sectors.
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Steel Bridge Structures: Specialized fabrication for railway and road bridges with robust load capacity.
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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
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Sector: |
|
| IPO opens on | 9 August 2025 |
| IPO closes on | 11 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%) |
| 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?
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 |
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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):
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Revenue: Rs.155.89 (FY23) → Rs.218.77 (FY24) → Rs.273.91 (FY25)
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PAT: Rs.5.11 (FY23) → Rs.9.42 (FY24) → Rs.14.16 (FY25)
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EBITDA: Rs.16.22 (FY23) → Rs.25.79 (FY24) → Rs.36.61 (FY25)
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Net Worth: Rs.28.74 (FY23) → Rs.43.80 (FY24) → Rs.60.37 (FY25)
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Borrowings: Rs.48.52 (FY23) → Rs.59.83 (FY24) → Rs.78.55 (FY25)
Key Observations:
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Growth: Revenue CAGR ~32% over FY23-25 with PAT nearly tripled.
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Margins: EBITDA margin improved to 13.37% in FY25 (vs 10.4% in FY23), thanks to material cost optimization.
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Balance Sheet:
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Reserves have grown to Rs.49.27 cr.
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Cash balance healthy at Rs.10.51 cr.
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Receivables at Rs.60.50 cr = ~2.6 months’ sales → reasonable for EPC/fabrication industry.
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Inventory at Rs.11.63 cr = ~15 days’ sales → efficient.
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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.
