As September 2025 continues to offer strong IPOs, Karbonsteel Engineering Limited IPO is set to open on September 9, 2025. The IPO provides an opportunity to invest in an engineering company with significant capabilities in manufacturing steel structures and fabrications for large-scale industrial and infrastructure projects. Here is a detailed insight into Karbonsteel Engineering, its IPO, and the industry outlook.
About Karbonsteel Engineering Ltd.
Incorporated in 2011, Karbonsteel Engineering Limited is an engineering solutions provider specialising in the design, manufacture, and supply of heavy steel structures. Its offerings support various industries, including steel sector, oil & gas sector, refineries sector, and infrastructure development sector.
- Facilities: Karbonsteel operates two manufacturing units in Gujarat and Maharashtra, producing steel bridges, pre-engineered buildings (PEBs), and large-scale fabricated steel components with a combined capacity of 32,400 MT per year.
- Product Portfolio:
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- Heavy Steel Fabricated Structures for industrial and infrastructure projects.
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- Precision Fabricated Steel Structures for customised industrial applications.
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- Steel Bridge Structures for constructing railway and road bridges.
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- Pre-Engineered Buildings (PEBs) for cost-effective, efficient construction.
- Employees: 349 (as of January 31, 2025).
- Promoters: Shrenik Kirit Shah and Mittal Shrenik Shah.
Karbonsteel Engineering IPO Details
| IPO Date | September 9, 2025 to September 11, 2025 |
| Face Value | ₹10 per share |
| Issue Price Band | ₹151 to ₹159 per share |
| Lot Size | 800 Shares |
| Sale Type | Fresh Capital-cum-Offer for Sale |
| Total Issue Size | 37,29,600 shares (aggregating up to ₹59.30 Cr) |
| Reserved for Market Maker | 1,88,000 shares (aggregating up to ₹2.99 Cr) SS Corporate Securities Ltd. Rikhav Securities Ltd. |
| Fresh Issue (Ex Market Maker) |
28,51,600 shares (aggregating up to ₹45.34 Cr) |
| Offer for Sale | 6,90,000 shares of ₹10 (aggregating up to ₹10.97 Cr) |
| Net Offered to Public | 35,41,600 shares (aggregating up to ₹56.31 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE SME |
| Share Holding Pre Issue | 1,11,02,222 shares |
| Share Holding Post Issue | 1,41,41,822 shares |
Important IPO Timeline
| IPO Open Date | Tue, Sep 9, 2025 |
| IPO Close Date | Thu, Sep 11, 2025 |
| Tentative Allotment | Fri, Sep 12, 2025 |
| Initiation of Refunds | Mon, Sep 15, 2025 |
| Credit of Shares to Demat | Mon, Sep 15, 2025 |
| Tentative Listing Date | Tue, Sep 16, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 11, 2025 |
IPO Reservation
| Investor Category | Shares Offered | % of Issue |
| Market Maker | 1,88,000 | 5.04% |
| QIB | 17,68,800 | 47.43% |
| NII (HNI) | 5,32,800 | 14.29% |
| Retail (RII) | 12,40,000 | 33.25% |
| Total | 37,29,600 | 100.00% |
Lot Size of Karbonsteel Engineering IPO
| Application | Lots | Shares | Amount |
| Retail (Min) | 2 | 1,600 | ₹2,54,400 |
| Retail (Max) | 2 | 1,600 | ₹2,54,400 |
| S-HNI (Min) | 3 | 2,400 | ₹3,81,600 |
| S-HNI (Max) | 7 | 5,600 | ₹8,90,400 |
| B-HNI (Min) | 8 | 6,400 | ₹10,17,600 |
Karbonsteel Engineering Ltd. Financials
The market capitalisation of Karbonsteel Engineering IPO is ₹224.85 Cr.
Key Performance Indicators (FY25):
| KPI | Value |
| ROE | 27.19% |
| ROCE | 24.63% |
| RoNW | 23.45% |
| Debt/Equity | 1.30 |
| PAT Margin | 5.19% |
| EBITDA Margin | 13.41% |
| EPS (Pre IPO) | ₹12.75 |
| EPS (Post IPO) | ₹10.01 |
| P/E (Pre IPO) | 12.47x |
| P/E (Post IPO) | 15.88x |
Key Company Financials (₹ Cr):
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
| Assets | 232.76 | 176.14 | 143.76 |
| Total Income | 273.91 | 218.77 | 155.89 |
| Profit After Tax | 14.16 | 9.42 | 5.11 |
| EBITDA | 36.61 | 25.79 | 16.22 |
| Net Worth | 60.37 | 43.80 | 28.74 |
| Reserves & Surplus | 49.27 | 38.41 | 23.74 |
| Total Borrowing | 78.55 | 59.83 | 48.52 |
Promoter Holding:
| Pre-Issue | Post-Issue |
| 72.17% |
Objects of the Issue
| S.No. | Purpose | Amount (₹ in Crores) |
| 1 | Expansion of Umbergaon facility | ₹12.29 |
| 2 | Repayment of borrowings | ₹3.08 |
| 3 | Working capital requirements | ₹25.25 |
| 4 | General corporate purposes |
Karbonsteel Engineering Ltd.: Industry Outlook
- Infrastructure Growth: India’s infrastructure expansion, including steel plants, bridges, and oil & gas plants, will drive demand for heavy steel structures.
- Government Initiatives: The National Infrastructure Pipeline (NIP) continues to accelerate demand for large-scale fabricated structures.
- Industrial and Commercial Growth: Rising demand for pre-engineered buildings (PEBs) across sectors such as warehousing, manufacturing, and retail continues to boost order books.
- Steel Fabrication Demand: As the focus shifts towards high-quality steel components for steel plants, bridges, and infrastructure, Karbonsteel’s manufacturing expertise gives it a competitive edge.
Conclusion
Karbonsteel Engineering Ltd. offers a robust investment opportunity within the steel fabrication and infrastructure sector. The company’s healthy order book, strong revenue growth, and plans for capacity expansion position it well for long-term success. However, potential investors should consider risks related to high debt levels and supply chain dynamics. The fixed price issue presents a stable entry, but market liquidity post-listing might be a factor to consider.
If you are exploring more investment opportunities, check out our dedicated page on upcoming IPO listings to stay updated on the latest market offerings.
