Solar Manufacturing Firm Karamtara To Issue Rs 1750cr IPO

Solar manufacturing company Karamtara Engineering is all set to launch an Initial Public Offering (IPO) worth ₹1,350 crore. The firm plans to enter the Indian stock exchange to expand its business, particularly in the country’s renewable energy sector. The proposed IPO comprises a fresh issue of ₹1,350 crore and an offer for sale (OFS) worth ₹400 crore.

Karamtara Engineering is a backward-integrated manufacturer of products for the renewable energy and transmission line sectors. It offers a diverse product portfolio, positioning itself as a one-stop shop for solar structures, including fixed-tilt and tracker systems. The company also has plans to enter the wind energy sector.

“We offer lattice structures for transmission lines, fasteners for solar, wind, transmission, and industrial sectors, as well as overhead transmission line hardware fittings and accessories. In addition, we are foraying into the wind energy sector by setting up a manufacturing facility to produce tubular towers for wind turbines, which is expected to be operational by the first quarter of Fiscal 2026,” the Draft Red Herring Prospectus (DRHP) of the firm stated.

As of September 30, 2024, the company reported an aggregate installed capacity of 567,000 MTPA, including 374,700 MTPA for solar products, equivalent to approximately 13.20 GW. This figure excludes its galvanizing capacity.

Promoters and Financials

Tanveer Singh, Rajiv Singh, Inderjeet Singh, Inderjeet Tanveer Singh Trust, and Inderjeet Rajiv Singh Trust are the promoters of the company. The firm plans to utilize the net proceeds from the IPO for prepayment, repayment, and settlement of its obligations to lenders.

Karamtara Engineering has reported consistent growth in its restated profit over the past three financial years. The company’s total profit rose from ₹12.65 crore in FY22 to ₹42.36 crore in FY23, reaching ₹102.65 crore in FY24. Its revenues have followed a similar upward trajectory.