Karbonsteel Engineering IPO

About Karbonsteel Engineering IPO

A 100% book-built issue, the IPO of Karbonsteel Engineering Ltd comprises a fresh issue of up to 30,39,600 equity shares. It also has an offer for sale of up to 6,90,000 equity shares. The price band is ₹151-₹159 per share and the lot size is 800. The IPO opens on September 8, 2025 and closes on September 10, 2025.

The listing date is on September 15, 2025 and the allotment date is on September 11, 2025. The credit of shares to the Demat account will take place on September 12, 2025, while the initiation of refund will take place on September 12, 2025.

Karbonsteel Engineering Ltd is a structural engineering and fabrication company engaged primarily in the design, fabrication and assembly of heavy and precision steel structures, customised to meet clients’ requirements across various industrial and infrastructure segments.

Objectives of Karbonsteel Engineering IPO

The company proposes to utilise the IPO proceeds for:

• Funding of capital expenditure towards expansion of existing Umbergaon facility through construction of new sheds
• Repayment of a portion of certain borrowings availed by the company
• Meeting working capital requirements
• General corporate purposes

Industry Outlook

Structural steel is a high-performance construction material specifically designed for use in the construction of buildings, bridges, and various other infrastructure projects where a high strength-to-weight ratio is desired. It’s renowned for its strength-to-weight ratio, making it both strong and lightweight, a crucial characteristic for supporting large structures with minimal material use.

It also exhibits excellent ductility, which allows it to bend and deform under stress without breaking, making it capable of withstanding bending, stretching, and other dynamic forces during construction and use.

The structural steel industry in India is a crucial part of infrastructure and industrial development. As urbanisation, industrialisation, and technological advancements progress, the demand for high-performance structural steel continues to grow. India, the second-largest crude steel producer, has also been a key player in the global steel market.

The country leverages its rich iron ore reserves and supportive government initiatives, such as the National Steel Policy 2017, to enhance its production capabilities. India’s crude steel production capacity has increased from 142.3 Mn tonnes in FY 2020 to 179.5 Mn Tonnes in FY 2024 (provision as per Ministry of Steel), registering a compounded annual growth of 6%.

Company Information

Karbonsteel Engineering Ltd is a structural engineering and fabrication company engaged primarily in the design, fabrication and assembly of heavy and precision steel structures, customized to meet clients’ requirements across various industrial and infrastructure segments. It has delivered structural engineering and fabrication solutions in diverse sectors including steel plants, railway bridges, oil & gas plants, refineries, chemical plants and other industrial units.

Its fabricated structures form an integral part of the construction, expansion or modernisation of industrial and infrastructure projects, including industrial plants, high rise buildings, railway bridges and other large-scale developments.

Strengths of Karbonsteel Engineering IPO

• Capabilities to execute large-scale industrial and infrastructure projects
  
• Strong order book
  
• In-house manufacturing and testing capabilities
  
• Strong relationship with customers
  
• Experienced Promoters with strong management team having domain knowledge
  

Risks of Karbonsteel Engineering IPO

• Loss of key customers may have adverse effect on business
  
• Delay in project execution and cost overrun may adversely impact business
  
• Slowdown in industrial and infrastructural sectors may negatively impact business
  
• Failure to comply with stringent quality standards may affect result of operations
  
• Lack of long-term agreements with suppliers may adversely affect business
  

Anchor Investor Bidding Date

Anchor portion of the IPO will open for bidding on September 4, 2025.

IPO Registrar and Book Running Lead Manager

• IPO Registrar: Maashitla Securities Private Ltd
  
• Book Running Lead Manager: Seren Capital Private Limited
  

Business Model

Karbonsteel Engineering Ltd is a structural engineering and fabrication company engaged primarily in the design, fabrication and assembly of heavy and precision steel structures, customised to meet clients’ requirements across various industrial and infrastructure segments. Its structural engineering and fabrication solutions can broadly be classified into four verticals:

• Heavy Steel Fabricated Structures
• Precision Fabricated Steel Structures or Technological Structures
• Steel Bridge Structures for High-Speed Rail Projects
• Pre-Engineered Buildings

Company Growth Trajectory

The revenue from operations of Karbonsteel Engineering Ltd grew from ₹155.5803 crores in FY 23 to ₹273.0535 crores in FY 25, while EBITDA margin grew from 10.43% in FY 23 to 13.41% in FY 25. The company’s PAT margin grew from 3.28% in FY 23 to 5.19% in FY 25. Capabilities to execute large-scale industrial and infrastructure projects coupled with strong order book has helped the company grow over the years.

Market Position

Karbonsteel Engineering Ltd operates through two manufacturing facilities located at (i) Umbergaon, District Valsad, Gujarat and (ii) Khopoli, District Raigad, Maharashtra, with a combined installed fabrication capacity of 36,000 MT p.a. Some of its esteemed customers include Arcelor Mittal Nippon Steel India Limited, Tata Projects Limited, John Cockerill India Limited, Ray Engineering Pvt Ltd, JSW Severfield Structures Ltd and Panametrics Engineering Pvt Ltd.

How to Check Allotment Status of Karbonsteel Engineering IPO?

1. Visit the Registrar’s Website

• Go to the official website of Maashitla Securities Pvt Ltd
• Choose ‘Public’ Issues from ‘Allotment Status’
• Select Company Name and enter either your PAN No, Application No or Demat Account No
• Click on ‘Submit’ to know the status

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to the BSE website and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Choose the Issue Type
  
• Select the Issue Name from dropdown
  
• Put in either your application number or PAN number
  
• Check the box ‘I’m not a robot’
  
• Click on ‘Search’ to know allotment status
  

How to Apply for Karbonsteel Engineering IPO?

• Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
  
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.