Karbonsteel Engineering IPO: Will open from September 8, see price closure and details here
A new opportunity is coming for financial market investors. Mumbai-based Karbonsteel Engineering IPO is going to open for subscription on September 8. This IPO is creating buzz in the market with its attractive price closure and growth potential. If you are thinking about investing in new IPOs, then in this article you will get detailed information about its size, price closure, objectives and company financials.
Karbonsteel Engineering IPO size and price closure
The size of Karbonsteel Engineering IPO will be Rs 59.3 crore in which total 37,29,600 shares will be issued. The company has decided to price the IPO at Rs 151-159 per share. This IPO is a combination of fresh issue and offer-for-sale. The fresh issue will include 30,39,600 shares and along with that 6.9 lakh shares will be sold by the promoters through offer-for-sale.
Promoters Shrenik Kirit Shah and Mittal Shrenik Shah are bringing some of their holdings to the market. In this process Shrenik Shah will sell 4.14 lakh shares and Mittal Shah will sell 2.76 lakh shares. This will give investors a new entry point and it will be easier for the company to fund its growth plans.
Karbonsteel Engineering IPO dates and listing plan
The IPO will open on September 8 and close on September 10. The anchor book for institutional investors will open on September 4. The IPO allotment finalisation date is September 11 and trading will begin on September 15 on the BSE SME exchange.
This timeline is important for investors who wish to actively participate in the IPO, as the allotment and listing dates may determine their returns and investment strategy.
Objective of Karbonsteel Engineering IPO
The company is not going to spend its IPO money randomly, but is taking a planned and focused approach. Out of the total ₹59.3 crore, approximately ₹12.29 crore will be spent only on the expansion of the Umbergaon facility, where new sheds will be built to increase both production capacity and efficiency. Apart from this, the biggest portion — ₹25.25 crore — has been kept for the company’s working capital, which will make the day-to-day operations stronger.
Karbonsteel is also looking to clear some of its debts, for which ₹3.07 crore has been allocated. The remaining funds will be used for general corporate purposes, such as streamlining the business, exploring new projects or ensuring overall financial stability. This strategy clearly shows that the real focus of the Karbonsteel Engineering IPO is to strengthen both growth and balance sheet.
Financial performance of Karbonsteel Engineering
The biggest question of every investor before investing in IPO is how is the financial performance of the company. Karbonsteel Engineering reported a profit of Rs 14.2 crore in FY2025, which is 50.2% higher than Rs 9.4 crore last year.
The revenue numbers are also quite impressive. Karbonsteel Engineering’s revenue in FY2025 reached ₹273 crore, which is much higher than ₹218.3 crore last year. If seen in percentage terms, this is a growth of almost 25%. This indicates that the company is not only sustaining its business but is also actively expanding its market share. Showing such consistent growth in a competitive sector like steel fabrication is a positive signal and can also be a confidence boost for investors.
Karbonsteel Engineering business and competition
Karbonsteel Engineering manufactures heavy and precision steel fabricated structures, PEBs (pre-engineered buildings) and steel bridge structures. The company has two state-of-the-art manufacturing facilities at Umbergaon (Gujarat) and Khopoli (Maharashtra) with a combined capacity of 36,000 MT per annum.
The competition in this segment is also quite tough as the market has listed peers like Atmastco and Goodluck India. Still, Karbonsteel is emerging as a strong contender on the basis of its expansion and financial growth. The book running lead manager of this IPO will be Seren Capital which will conduct this process smoothly.
Should you invest in Karbonsteel Engineering IPO?
Investment decision is personal for every investor, but if we look at the financial growth, expansion plans and industry demand of Karbonsteel Engineering IPO, then this IPO seems to be a promising option. The structural engineering and steel fabrication sector is continuously growing and can become even stronger with infrastructure demand.
This IPO provides a balanced opportunity in the long-term as well with the possibility of short-term listing gains. But it is important for every investor to take a decision according to his risk appetite and financial goals.
Disclaimer:
This article is for informational purposes only. The details given here are not investment advice. It is important to consult your financial advisor before investing in the IPO. Market is subject to risk and your returns depend on many factors.
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