Karbonsteel Engineering Raises Nearly Rs 17 Crore from Anchor Investors Ahead of IPO Launch
SME IPO Set to Open on Monday, September 8, with Price Band of Rs 151-159 Per Share
NEW DELHI: (Sep 7, 2025) – Engineering solutions provider Karbonsteel Engineering Limited has successfully mobilised nearly Rs 17 crore from anchor investors, marking a strong start to its much-anticipated initial public offering (IPO). The SME IPO, aimed at raising approximately Rs 59.30 crore, is scheduled to open for public subscription on Monday, September 8, 2025, and close on September 10, 2025.
The anchor round, conducted on September 7, saw participation from prominent institutional investors, underscoring confidence in the company’s growth prospects in the engineering and fabrication sector. According to a circular uploaded on the Bombay Stock Exchange (BSE) website, Karbonsteel Engineering allotted 10,60,800 equity shares to 10 entities at the upper end of the price band, Rs 159 per share. This transaction aggregates to Rs 16.86 crore, providing a solid foundation for the IPO’s success.
Key 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, among others. These allocations represent about 28.44% of the total issue size, highlighting robust institutional backing for the Gujarat-based firm.
Company Overview and IPO Objectives
Karbonsteel Engineering Limited, incorporated in 2013, specializes in providing comprehensive engineering solutions, including fabrication, erection, and maintenance services for industrial structures, storage tanks, and pressure vessels. The company caters to sectors such as oil and gas, petrochemicals, power, and water treatment, with a strong presence in domestic and international markets. Headquartered in Ahmedabad, Gujarat, Karbonsteel operates manufacturing facilities in Umbergaon, focusing on high-quality steel fabrication to meet stringent industry standards.
The IPO is entirely a fresh issue of 37,30,000 equity shares with a face value of Rs 10 each, with no offer-for-sale component. At the upper price band of Rs 159, the total issue size stands at Rs 59.30 crore. The proceeds from the IPO will be utilized for strategic purposes, including the expansion of the Umbergaon facility to enhance production capacity, repayment of outstanding borrowings, and bolstering working capital requirements. This infusion is expected to support the company’s growth ambitions amid rising demand for engineering solutions in India’s infrastructure and energy sectors.
The minimum application size for retail investors is 800 shares, translating to an investment of Rs 1,27,200 at the upper price band. Qualified institutional buyers (QIBs) can apply for a minimum of one lot, while high-net-worth individuals (HNIs) require at least two lots. The shares are proposed to be listed on the BSE SME platform, with the tentative listing date set for September 15, 2025.
Financial Snapshot and Market Outlook
In recent financials, Karbonsteel Engineering reported a total revenue of Rs 218.77 crore for the fiscal year, with a profit after tax of Rs 9.42 crore. The company’s total liabilities stood at Rs 176.14 crore, reflecting a stable balance sheet poised for expansion. With a price band of Rs 151 to Rs 159 per share, the IPO offers investors an opportunity to participate in a company that has demonstrated consistent growth, driven by its expertise in custom fabrication and a diversified client base.
The issue has been fully underwritten by Lead Manager Narnolia Financial Services Limited and Market Maker Narnolia Capital Advisors Private Limited. As the IPO approaches, market observers anticipate strong subscription interest, particularly from retail and HNI segments, given the company’s niche positioning in the engineering services space.
Investors are advised to consult the Red Herring Prospectus (RHP) filed with BSE for detailed risk factors and other disclosures. Applications can be made through ASBA (Application Supported by Blocked Amount) via UPI or net banking.
By TIN24 Editor AMIT ALHAT
Author: The India News 24
TIN24 (The India News 24) The India News 24 (TIN24) is a Mumbai-based news Digital Media focusing on breaking news, local and regional issues in India, with content primarily in Marathi. It was established with an X (Twitter) presence since July 2022. Owner & News Editor: Amit Alhat Education: BA in Mass Communication Journalism (Graduate) Experience: 12 years in journalism Platforms: - Website: https://theindianews24.in - X (Twitter): https://x.com/the_indianews24 - YouTube: https://www.youtube.com/@theindianews247 - Instagram: https://www.instagram.com/theindianews_24
