✅ Subscribe
Open Now
Other Electrical Equipment
Karamtara Engineering Limited IPO
₹875 Cr · Fresh Issue & OFS · Other Electrical Equipment
Price Band
₹241 – ₹254
Lot: 59 shares (₹14,986)
GMP (Grey Market)
₹65 (+25.59%)
Est. listing ₹319
Issue Size
₹875 Cr
Fresh Issue & OFS
Market Cap
₹8174.30 Cr
At upper band
P/E Ratio
35.7x
P/S: 1.9x
Listing Date
17 Sep 2026
BSE & NSE
IPO Timeline
✓
Opens
09 Sep 2026
✓
Closes
11 Sep 2026
📋
Allotment
14 Sep 2026
₹
Refund
15 Sep 2026
📈
Listing
17 Sep 2026
IPO India Hub: Subscribe
Conviction
7/10
The company demonstrates exceptional growth with 49.3% PAT CAGR and 33.4% revenue CAGR over two years, supported by a strong 23.3% ROCE and healthy 0.57x D/E ratio. However, the 5.3% net margin is thin for the electrical equipment sector, and valuation at 1.55× sector midpoint sits at the upper boundary of the Subscribe threshold.
Our Analysis — Key Points
✓ Strength
Exceptional profit growth trajectory
Net profit grew from ₹102.7 Cr (FY-2) to ₹228.8 Cr (FY0), a 49.3% CAGR, significantly outpacing revenue growth of 33.4%. This indicates improving operational leverage and cost discipline despite competitive pressures in electrical equipment manufacturing.
✓ Strength
Strong capital efficiency metrics
ROCE of 23.3% and a conservative D/E ratio of 0.57x demonstrate efficient capital deployment and low financial risk. The company is using 69% of IPO proceeds (₹600 Cr of ₹875 Cr) for debt reduction, further strengthening the balance sheet.
⚠ Risk
Thin profit margins limit valuation support
Net profit margin of 5.3% is below the 15% threshold that would justify premium valuations. At 1.55× sector midpoint, the company offers no margin-based valuation cushion, making it vulnerable to cost inflation or pricing pressure.
⚠ Risk
Debt repayment focus reduces growth capex
The entire ₹600 Cr use of proceeds is allocated to debt repayment with zero allocation to capacity expansion or R&D. This defensive posture may constrain future growth velocity and competitive positioning in a capital-intensive sector.
₹ Valuation
Valuation at sector midpoint boundary
P/E of 35.7x translates to 1.55× the niche/unlisted sector midpoint of 23x (range 18–28x). While within Subscribe range due to strong growth, the 5.3% NPM provides no margin justification for premium pricing, leaving limited upside buffer.
👁 Watch
Monitor margin trajectory post-listing
Track quarterly EBITDA and net margins closely. Any compression below 10% EBITDA or 5% NPM would signal operational stress and justify profit-taking, as the valuation offers no safety margin for margin deterioration.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Karamtara Engineering Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹4311.98 Cr
Net Profit
₹228.75 Cr
Industry
Other Electrical Equipment
Issue Type
Fresh Issue & OFS
Promoters
TANVEER SINGH, RAJIV SINGH, INDERJEET SINGH, INDERJEET TANVEER SINGH TRUST AND INDERJEET RAJIV SINGH TRUST
Lead Managers
JM Financial, ICICI Securities and IIFL Capital Services
Quick Actions
Frequently Asked Questions
Subscribe. The company demonstrates exceptional growth with 49.3% PAT CAGR and 33.4% revenue CAGR over two years, supported by a strong 23.3% ROCE and healthy 0.57x D/E ratio. However, the 5.3% net margin is thin for the electrical equipment sector, and valuation at 1.55× sector midpoint sits at the upper boundary of the Subscribe threshold.
The current grey market premium (GMP) is ₹65, which is 25.59% above the upper band price of ₹254. This implies an estimated listing price of around ₹319. GMP is informal and unregulated — treat it as a sentiment indicator, not a guarantee.
The minimum lot size is 59 shares. At the upper band price of ₹254, the minimum investment per retail application is ₹14,986. You can apply for up to 13 lots (₹194,818) under the retail category (up to ₹2 lakh).
The IPO opens on 09 Sep 2026. It closes on 11 Sep 2026. Allotment is expected on 14 Sep 2026. Refunds initiate on 15 Sep 2026. Listing on BSE and NSE is on 17 Sep 2026.
The lead managers for the IPO are JM Financial, ICICI Securities and IIFL Capital Services. Check the SEBI filing for the registrar details.
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 11 Sep 2026. The minimum investment is ₹14,986 for one lot (59 shares). The company demonstrates exceptional growth with 49.3% PAT CAGR and 33.4% revenue CAGR over two years, supported by a strong 23.3% ROCE and healthy 0.57x D/E ratio. However, the 5.3% net margin is thin for the electrical equipment sector, and valuation at 1.55× sector midpoint sits at the upper boundary of the Subscribe threshold.
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 11 Sep 2026. The IPO is priced at a P/E of 35.7x. Market cap at issue price is ₹8174.30 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The minimum lot is 59 shares at ₹254 each, costing ₹14,986 per application. The issue closes on 11 Sep 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Karamtara Engineering Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
Explore More