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Listed
Other Electrical Equipment
Karamtara Engineering Limited IPO
₹875 Cr · Fresh Issue & OFS · Other Electrical Equipment
Price Band
₹241 – ₹254
Lot: 800 shares (₹203,200)
GMP (Grey Market)
₹43 (+27.22%)
Est. listing ₹297
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 strong operational momentum with 49.3% PAT CAGR and 33.4% revenue CAGR over two years, supported by a P/E of 35.7x that is 1.55× the niche sector midpoint—within Subscribe threshold. The primary risk is thin 5.3% net margins, which leave limited buffer for cost inflation or competitive pressure in electrical equipment manufacturing.
Listing Performance
Issue Price
₹254
Allotment price
Listing Price
₹320
+25.98% on listing day
Current Price (CMP)
₹341.8
+34.6% vs issue
Listed On
17 Sep 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
Exceptional profit growth trajectory
Net profit has grown from ₹102.7 Cr (FY-2) to ₹228.8 Cr (FY0), a 49.3% CAGR that significantly outpaces revenue growth of 33.4%. This acceleration in earnings demonstrates improving operational leverage and cost management in the business.
✓ Strength
Conservative leverage and strong returns
Debt-to-equity ratio of 0.57x is well below the 1.5x threshold, and ROCE of 23.3% indicates efficient capital deployment. The company is using 68.6% of IPO proceeds to reduce debt, further strengthening the balance sheet post-listing.
⚠ Risk
Thin profit margins limit downside protection
Net profit margin of 5.3% is materially below the 15% threshold that would justify premium valuation. Any adverse movement in raw material costs, freight, or competitive pricing could compress margins and disappoint earnings expectations.
⚠ Risk
Weak grey market signal and valuation ceiling
GMP of only ₹1 (0.89%) is inconclusive for a Mainboard IPO and suggests investor sentiment is lukewarm despite strong subscription. At 1.55× sector midpoint, the company is priced at the upper boundary of Subscribe range with limited upside buffer.
₹ Valuation
Valuation at sector midpoint threshold
P/E of 35.7x translates to 1.55× the niche/unlisted sector midpoint of 23x (range 18–28x), placing it within the Subscribe zone but without margin for error. P/S of 1.9x is reasonable for a manufacturing business with 33% revenue growth, but profitability cushion is weak.
👁 Watch
Monitor margin sustainability post-listing
Track quarterly EBITDA and net margins closely over the next 2–3 quarters to confirm whether the 49% PAT growth is structural or driven by temporary cost tailwinds. Any decline below 5% NPM would signal deteriorating business quality.
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 strong operational momentum with 49.3% PAT CAGR and 33.4% revenue CAGR over two years, supported by a P/E of 35.7x that is 1.55× the niche sector midpoint—within Subscribe threshold. The primary risk is thin 5.3% net margins, which leave limited buffer for cost inflation or competitive pressure in electrical equipment manufacturing.
The current grey market premium (GMP) is ₹43, which is 27.22% above the upper band price of ₹254. This implies an estimated listing price of around ₹297. GMP is informal and unregulated — treat it as a sentiment indicator, not a guarantee.
The minimum lot size is 800 shares. At the upper band price of ₹254, the minimum investment per retail application is ₹203,200. You can apply for up to 13 lots (₹2,641,600) 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.
The IPO listed on 17 Sep 2026 at ₹320 against an issue price of ₹254 (+25.98% on listing day). The current market price (CMP) is approximately ₹341.8 (+34.6% vs issue).
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 11 Sep 2026. The minimum investment is ₹203,200 for one lot (800 shares). The company demonstrates strong operational momentum with 49.3% PAT CAGR and 33.4% revenue CAGR over two years, supported by a P/E of 35.7x that is 1.55× the niche sector midpoint—within Subscribe threshold. The primary risk is thin 5.3% net margins, which leave limited buffer for cost inflation or competitive pressure in electrical equipment manufacturing.
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 800 shares at ₹254 each, costing ₹203,200 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.
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