Karbonsteel Engineering Raises Nearly Rs 17 Crore from Anchor Investors Ahead of IPO Launch

Karbonsteel Engineering, a provider of engineering solutions, has secured nearly Rs 17 crore from anchor investors ahead of its IPO, which is set to open on September 9. The anchor investors include Subhkam Ventures I, Vikasa India EIF I Fund, Nav Capital VCC, Aarth AIF Growth Fund, Nova Global Opportunities, Evergrow Capital Opportunities Fund, Sunrise Investment Trust, and Invicta Continuum Fund I. This information was detailed in a circular on the BSE website.

The company has allocated over 10.6 lakh equity shares to these 10 entities at Rs 159 each, totalling Rs 16.86 crore. The IPO, valued at Rs 59.30 crore, will close on September 11. The price range for the shares is set between Rs 151 and Rs 159. The offering includes a fresh issue of 30.39 lakh shares worth Rs 48.33 crore and an offer for sale of 6.9 lakh shares amounting to Rs 10.97 crore.

IPO Proceeds and Financial Strategy

Funds raised from the IPO will be used for capital expenditure to expand the existing Umbergaon facility by constructing new sheds. Additionally, the proceeds will help repay debt, meet working capital needs, and serve general corporate purposes. "The IPO proceeds will improve the efficiency, strengthen our financial position, and enable us to take on larger projects, thereby accelerating growth and creating long-term value for the company," stated Shrenik Kirit Shah, Chairman & MD of Karbonsteel Engineering.

Founded in 2011 and based in Mumbai, Karbonsteel Engineering specialises in structural engineering and fabrication solutions for various industries such as steel plants, railway bridges, and oil & gas facilities. Financially, the company reported a revenue of Rs 273.05 crore and a profit after tax of Rs 14.16 crore for FY25.

Listing and Management Details

The company's shares are planned to be listed on the BSE's SME platform. Seren Capital is acting as the sole book-running lead manager for this issue while Maashitla Securities serves as the registrar.

Karbonsteel Engineering aims to leverage the IPO proceeds to enhance its operational capabilities and financial health. This strategic move is expected to position the company for future growth opportunities in its sector.

With inputs from PTI