Karamtara Engineering Ltd IPO
Status: Closed
Overview
IPO date
09 Sept 2026 to 11 Sept 2026
Face value
₹ 10 per share
Price
₹ 241 to ₹254 per share
Issue Size
34,448,818 shares
(aggregating up to ₹ 875 Cr)
(aggregating up to ₹ 875 Cr)
Allotment Date
15 Sept 2026
Listing at
NSE
Issue type
Book Building
Sector
Capital Goods - Electrical Equipment
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T&C*
Strengths vs Risks of Karamtara Engineering Ltd
Know the pros & cons
Strengths
- Largest integrated manufacturer in India for solar mounting structures and tracker components.
- Diverse product offerings acting as a one-stop shop for solar structures (fixed-tilt and trackers).
- Extensive global footprint with a track record of exports to over 50 countries.
- Established relationships with global customers and high customer retention.
- Strategic network of manufacturing facilities with advanced capabilities.
- Experienced Promoter Directors supported by a skilled management team.
- Consistent track record of financial performance and strong financial position.
Risks
- The company is significantly dependent on its manufacturing facilities. Any unscheduled, unplanned or prolonged disruption, slowdown or shutdown of the company's manufacturing facilities could have a material adverse effect on its business, financial condition, cash flows and results of operations. Further, the majority of the company's manufacturing facilities are located in Maharashtra in India. Its revenue attributable to the company's facilities in Maharashtra, India accounted for 90.84%, 98.61% and 99.18% of its total revenue from operations in Fiscals 2026, 2025 and 2024, respectively, which exposes the company operations to potential risks arising from local and regional factors which may restrict its operations and adversely affect the company's business, financial condition, cash flows and results of operations.
- The company derives a substantial portion of its revenue from the sale of products in the solar industry (78.99%, 81.40% and 81.75% of the company's total revenue from operations in Fiscals 2026, 2025 and 2024, respectively), and any adverse trend in the solar energy industry could have a material adverse effect on its business, financial condition, cash flows and results of operations.
- The company depends on certain key customers for a significant portion of its revenues (the company's top 10 customers contributed to 48.63%, 40.40% and 63.47% of its total revenue from operations in Fiscals 2026, 2025 and 2024, respectively). Any decrease in revenues from any of the company's key customers or any loss of these customers may adversely affect its business, financial condition, cash flows and results of operations.
- The company derives a significant portion of its revenue from operations from exports (40.52%, 51.31% and 57.56% of the company's total revenue from operations in Fiscals 2026, 2025 and 2024, respectively) which exposes it to risks inherent to operations in these foreign jurisdictions. Any adverse developments in the international markets that the company operates or intends to expand to, including but not limited to foreign currency exchange rate fluctuations, could have an adverse effect on its business, financial condition, cash flows and results of operations.
- The Company, Directors and/or Key Managerial Personnel may be subject to warnings, show-cause notices and/ or penalties in the future pursuant to inspection of its books of accounts, records and other statutory documents pursuant to Section 206(5) of the Companies Act, 2013 by The Office of the Regional Director, Western Region, Ministry of Corporate Affairs ("Regional Director").
- Changes in international trade policies, geopolitics and trade tariffs, export controls, economic or trade sanctions may materially and adversely affect the company's business, financial condition and results of operations.
- Some of the Directors on the company's Board does not have prior experience of directorship in any of the companies listed on recognized stock exchanges, therefore, they will be able to provide only limited guidance in relation to the affairs of the Company post listing.
- The company is in the process of undertaking certain expansion activities and intends to continue to do so in the future, which may not materialize as expected or at all which in turn may have an adverse impact on its business and financial condition. Further, an inability to grow the company's business in additional geographic regions or international markets, including pursuant to any failures or delay in implementing its expansion plans, could have an adverse impact on the company's business, financial condition, cash flows and results of operations.
- There have been certain instances of delays in payment of statutory dues by the company in the past. Any delay in payment of statutory dues by the company in future may result in the imposition of penalties and in turn may have an adverse effect on its business, financial condition, results of operation and cash flows.
- The company funding requirements and deployment of the Net Proceeds of the Offer are based on management estimates.
- The company operations are subject to volatility in the supply and pricing of raw materials and components. The company is dependent on its suppliers (the company's top 10 suppliers contributed to 89.65%, 86.30% and 76.00% of total purchases in Fiscals 2026, 2025 and 2024, respectively) for certain raw materials and components and if the company is unable to procure the required quality and quantity, at competitive prices, its business, financial condition, cash flows and results of operations may be adversely affected.
- Restrictions on or import duties relating to materials and equipment imported for the company's manufacturing operations as well as restrictions on or import duties levied on its products in the company's export markets may adversely affect its business, financial condition, cash flows and results of operations.
- Its may grow the company's business through acquisitions, joint ventures, joint development or consortiums, which may prove to be difficult to integrate and manage or may not be successful.
- The company has limited experience in the manufacturing of tubular towers for wind turbines, angular towers, solar stamping parts, prefabricated engineered building structures and battery energy storage systems which makes it difficult to accurately assess its future growth prospects and may negatively affect the company's business, financial condition, cash flows and results of operations.
- Any downgrade of the company's credit ratings may restrict its access to capital and thereby adversely affect the company's business, cash flows and results of operations.
- Under-utilization of the company's manufacturing capacities and inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on the company's business, financial condition, cash flows and results of operations.
- The company has incurred certain indebtedness and its inability to obtain further financing or meet the company's obligations, including financial and other restrictive covenants under its debt financing arrangements could adversely affect the company's business, financial condition, cash flows and results of operations. Further, the Company has availed unsecured loans from banks and other financial institutions, which may be recalled on demand.
- The company is subject to governmental regulation and its may incur material liabilities under, or costs in order to comply with, existing or future laws and regulation, and the company failures to comply may result in enforcements, recalls, and other adverse actions.
- The company does not execute long-term agreements with most of its customers and the company's inability to procure new orders on a regular basis or at all may adversely affect its business, financial condition, cash flows and results of operations.
- The majority of the company's manufacturing facilities are located on premises/land held on leasehold basis. There can be no assurance that these lease agreements will be renewed upon termination, or that its will be able to obtain other premises on a leasehold basis on the same or similar commercial terms or at all.
- The Company has received several complaints in relation to a sub-judice dispute relating to the property underlying one of its manufacturing facilities, Unit OHTL Fittings. There is no assurance that further complaints, including from the Complainant or other third parties, will not be made against the Company in the future, which may divert the time and attention of its management and adversely affect the company's reputation.
- Certain of the company's Subsidiaries, Karamtara USA, Inc, Karamtara Italy SRL, Karamtara Renewables Saudi Limited, Karamtara Green Energy Limited and Hanwant Manbir Singh Foundation and its Associate, Clean Max Ame Private Limited, have incurred losses and witnessed negative operating cash flows (on a standalone basis) in Fiscals 2026, 2025 and 2024.
- The company is dependent on third-party transportation providers for the supply of materials for its manufacturing process and delivery of the company's finished products. Any delay or non-performance of obligations by such third-party transportation providers could adversely affect its business, financial condition, cash flows and results of operations.
- There are outstanding litigations against the Company, Directors and Promoters. An adverse outcome in any of these proceedings may affect its reputation and standing and impact the company's future business and could have a material adverse effect on its business, financial condition, cash flows and results of operations.
- The company's inability to effectively collect receivables and default in payment from its customers could result in the reduction of the company's profits and adversely affect its business, financial condition, cash flows and results of operations.
- The company's business has grown rapidly in recent years, and its may not be able to sustain the company's rate of growth in the future.
- The company is required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operates its business, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on the company's business, financial condition, cash flows and results of operations.
- The company operates in highly competitive markets in each of its product categories and an inability to compete effectively may adversely affect the company's business, financial condition, cash flows and results of operations.
- The company operations requires a significant amount of working capital. Any inability to meet its working capital requirements may adversely affect the company's business, financial condition, cash flows and results of operations.
- The company has in the past entered into related party transactions and will continue to do so in the future and its cannot assure you that the company could not have achieved more favorable terms if such transactions had not been entered into with related parties.
- Certain of the company's corporate records and filings are not traceable and may have inadvertent errors or inaccuracies. Further, there were delays in completing certain of its statutory and regulatory filings. The company cannot assure you that regulatory proceedings or actions will not be initiated against the company in the future, and its will not be subject to any penalty imposed by the competent authority in this regard.
- The company has certain contingent liabilities that have not been provided for in its financial statements, which if they materialize, may adversely affect the company's financial condition.
- The company's success depends in large part upon its KMPs, SMPs and certain other employees and the company's inability to attract, train and retain such persons could adversely affect its business, financial condition, cash flows and results of operations.
- The company may be unable to adequately obtain, maintain, protect and enforce its intellectual property rights. The company may also be subject to intellectual property infringement claims, which may be expensive to defend and may disrupt its business and operations.
- Information relating to the historical capacity and capacity utilization of the company's manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and its future production and capacity may vary.
- The company is exposed to losses due to fraud, employee negligence, theft, embezzlement or similar incidents. Its operations also subject the company to fraud by its suppliers, any of which may have an adverse impact on the company's business, financial condition, cash flows and results of operations.
- The company's insurance coverage may not be sufficient or may not adequately protect it against risks and unexpected events, which may adversely affect the company's business, financial condition, cash flows and results of operations.
- Non-availability of contract workers at reasonable cost or any strikes, work stoppages or increased wage demands could lead to disruption in the company's manufacturing facilities, which could adversely impact its business, financial condition, cash flows and results of operations.
- The company's Promoters, Tanveer Singh, Rajiv Singh, Inderjeet Singh, Inderjeet Tanveer Singh Trust and Inderjeet Rajiv Singh Trust, will continue to retain significant shareholding in the Company after the Offer, which will allow them to exercise significant influence over it.
- An inability to establish and maintain effective internal controls could lead to an adverse effect on the company's business, results of operations, cash flows and financial condition.
- If the company fails to keep its technical knowledge and process know-how confidential, the company may suffer a loss of its competitive advantage.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior Shareholders' approval.
- The company operations are subject to strict quality requirements and any product defects or failures by the company or its suppliers to comply with quality standards may lead to cancellation of existing and future orders or liability claims, which in turn could have an adverse impact on the company's business, financial condition, cash flows and results of operations.
- Certain of the company's Promoters have given personal guarantees in relation to majority of the borrowings of the Company which if revoked may requires alternative guarantees, repayment of amounts due or termination of the facilities.
- The company's inability to accurately forecast customer demand and maintain an optimal inventory level could adversely affect its business, financial condition, cash flows and results of operations.
- The company cannot assure payment of dividends on the Equity Shares in the future and its ability to pay dividends in the future will depends on the company's earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements and the company may not be able to pay dividends in future.
- Certain sections of this Red Herring Prospectus disclose information from the F&S Report which has been prepared exclusively for the Offer and commissioned and paid for by the company for such purpose and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- An inability to launch new and quality product offerings that address customer needs or adopt new technologies in the renewable energy and transmission line tower industries in an effective and timely manner may adversely affect the company's business, financial condition, cash flows and results of operations.
- The Company benefits from certain export benefits and other local state government incentives which are subject to the policies and decisions of the Government. Any reduction in or termination of incentives/subsidies/schemes the company enjoy or change in other favorable government policies resulting in reduction or termination of incentives/subsidies/schemes may affect its business, financial condition, cash flows and results of operations.
- The loss of accreditation for the company's manufacturing facilities and operations could damage its reputation, business, financial condition, cash flows and results of operations.
- Damage to and/or malfunction of any of the company operating systems or cyber security risks could disrupt its operations and adversely affect the company's business, financial condition, cash flows and results of operations.
- Improper storage, processing and handling of materials and products may cause damage to the company's inventory leading to an adverse effect on its business, results of operations and cash flows.
- The company's business prospects and future financial performance depends on the demand for solar power, transmission and wind power products which is subject to occasional/seasonal fluctuation, that may affect its business, financial condition, cash flows and results of operations.
- The company is exposed to risks in relation to the availability and fluctuations in the prices of power, fuel and water. Any shortage or non-availability of power, fuel and water at reasonable cost and in a timely manner could have an adverse impact on its business, financial condition, cash flows and results of operations.
- The company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance that may vary from any standard methodology that is applicable across the industry its operates.
- The Company will not receive any proceeds from the Offer for Sale portion.
- The interests of the company's Promoters, Promoter Group, Subsidiaries and Directors may cause conflicts of interest in the ordinary course of its business.
- Certain of the company's Promoters, Directors, Key Managerial Personnel and Senior Management may be interested in the Company and its Subsidiaries other than in terms of remuneration, perquisites or benefits and reimbursement of expenses.
- Certain of the company's Promoters does not have adequate experience in its line of business and have not actively participated in the business activities the company undertake, which may have an adverse impact on the management and operations of the Company.
Karamtara Engineering Ltd Peer Comparison
Understand the company’s industry standing
Karamtara Engineering Ltd.
Inox Wind Limited
Waaree Energies Limited
Face Value
10
10
10
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
4311.98
4397.12
26536.77
EPS-Basis
7.83
2.65
129.1
EPS-Diluted
7.83
2.65
128.84
NAV Per Share
41.72
36.93
501.9
P/E-Basic EPS
---
27.08
20.48
P/E-Diluted EPS
---
---
---
RONW(%)
20.78
8.32
32.48
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 09 Sept 2026 & closes on 11 Sept 2026.
Karamtara Engineering Limited was incorporated as Karamtara Engineering Private Limited' as a Private Company dated May 8, 1996, issued by the Additional Registrar of Companies, in Mumbai. The status was converted into a Public Company as Karamtara Engineering Limited' dated December 16, 2024 issued by the Registrar of Companies, Central Processing Centre. The Company is backward integrated manufacturer of products for renewable energy and transmission lines sectors. hardware fittings and accessories.
The products include Solar MMS, solar tracker piles and piers, solar torque tubes, lattice towers for transmission lines and fasteners for solar, transmission lines, wind power projects applications and industrial fasteners, together with OHTL hardware fittings and accessories. The Company offer lattice structures for transmission lines, fasteners for solar, wind, transmission and industrial sectors, and overhead transmission line.
In 1998, Company began its journey by starting production of transmission towers at Unit OHTL Fittings at Tarapur in Maharashtra. In 2004, it established Unit Solar Piles and TLT at Tarapur, through Karamtara Fasteners Private Limited, which got merged with the Company. In 2006, it started production of telecom towers in Tarapur; in 2008, Company set up Unit Profiles in Tarapur, through the merger process. In 2010, it commenced manufacturing of 765kV transmission towers. It acquired a structural steel profiles rolling mill in Nagpur in 2011. Following this acquisition, a subsidiary, Karamtara Italy SRL was incorporated as a subsidiary in 2012.
The Company started production of overhead transmission lines at Unit OHTL Fittings at Tarapur in 2013; commenced manufacturing of Solar module mounting structures at Unit Profiles in 2015. The Company incorporated Karamtara USA Inc. as a subsidiary in the USA in 2017. It started production of solar piers at Tarapur in 2019. It started production of torque tubes for solar energy at Unit Solar TT at Tarapur in 2023. The Company has further acquired Karamtara Renewables Saudi Limited as a subsidiary in the Kingdom of Saudi Arabia in 2024.
Company is planning an Initial Public Offer by raising funds aggregating upto Rs 1750 Crore Equity Shares comprising a Fresh Issue of Rs 1350 Crore equity shares and Offer for Sale of Rs 400 Crore equity shares.
Karamtara Engineering Ltd IPO will close on 11 Sept 2026.
- Largest integrated manufacturer in India for solar mounting structures and tracker components.
- Diverse product offerings acting as a one-stop shop for solar structures (fixed-tilt and trackers).
- Extensive global footprint with a track record of exports to over 50 countries.
- Established relationships with global customers and high customer retention.
- Strategic network of manufacturing facilities with advanced capabilities.
- Experienced Promoter Directors supported by a skilled management team.
- Consistent track record of financial performance and strong financial position.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Tanveer Singh | 65425593 | 22.16 | 61488585 | 19.11 |
| 2 | Rajiv Singh | 65264305 | 22.1 | 61327297 | 19.06 |
| 3 | Inderjeet Singh | 1410762 | 0.48 | 1410762 | 0.44 |
| 4 | Inderjeet Tanveer Singh Trust | 69833994 | 23.65 | 69833994 | 21.7 |
| 5 | Inderjeet Rajiv Singh Trust | 69833994 | 23.65 | 69833994 | 21.7 |
| 6 | Gaitri Singh | 51 | --- | 51 | --- |
| 7 | Sonal Singh | 51 | --- | 51 | --- |
| 8 | Kashyap Choksi | 32300 | 0.01 | 32300 | 0.01 |
- The company is significantly dependent on its manufacturing facilities. Any unscheduled, unplanned or prolonged disruption, slowdown or shutdown of the company's manufacturing facilities could have a material adverse effect on its business, financial condition, cash flows and results of operations. Further, the majority of the company's manufacturing facilities are located in Maharashtra in India. Its revenue attributable to the company's facilities in Maharashtra, India accounted for 90.84%, 98.61% and 99.18% of its total revenue from operations in Fiscals 2026, 2025 and 2024, respectively, which exposes the company operations to potential risks arising from local and regional factors which may restrict its operations and adversely affect the company's business, financial condition, cash flows and results of operations.
- The company derives a substantial portion of its revenue from the sale of products in the solar industry (78.99%, 81.40% and 81.75% of the company's total revenue from operations in Fiscals 2026, 2025 and 2024, respectively), and any adverse trend in the solar energy industry could have a material adverse effect on its business, financial condition, cash flows and results of operations.
- The company depends on certain key customers for a significant portion of its revenues (the company's top 10 customers contributed to 48.63%, 40.40% and 63.47% of its total revenue from operations in Fiscals 2026, 2025 and 2024, respectively). Any decrease in revenues from any of the company's key customers or any loss of these customers may adversely affect its business, financial condition, cash flows and results of operations.
- The company derives a significant portion of its revenue from operations from exports (40.52%, 51.31% and 57.56% of the company's total revenue from operations in Fiscals 2026, 2025 and 2024, respectively) which exposes it to risks inherent to operations in these foreign jurisdictions. Any adverse developments in the international markets that the company operates or intends to expand to, including but not limited to foreign currency exchange rate fluctuations, could have an adverse effect on its business, financial condition, cash flows and results of operations.
- The Company, Directors and/or Key Managerial Personnel may be subject to warnings, show-cause notices and/ or penalties in the future pursuant to inspection of its books of accounts, records and other statutory documents pursuant to Section 206(5) of the Companies Act, 2013 by The Office of the Regional Director, Western Region, Ministry of Corporate Affairs ("Regional Director").
- Changes in international trade policies, geopolitics and trade tariffs, export controls, economic or trade sanctions may materially and adversely affect the company's business, financial condition and results of operations.
- Some of the Directors on the company's Board does not have prior experience of directorship in any of the companies listed on recognized stock exchanges, therefore, they will be able to provide only limited guidance in relation to the affairs of the Company post listing.
- The company is in the process of undertaking certain expansion activities and intends to continue to do so in the future, which may not materialize as expected or at all which in turn may have an adverse impact on its business and financial condition. Further, an inability to grow the company's business in additional geographic regions or international markets, including pursuant to any failures or delay in implementing its expansion plans, could have an adverse impact on the company's business, financial condition, cash flows and results of operations.
- There have been certain instances of delays in payment of statutory dues by the company in the past. Any delay in payment of statutory dues by the company in future may result in the imposition of penalties and in turn may have an adverse effect on its business, financial condition, results of operation and cash flows.
- The company funding requirements and deployment of the Net Proceeds of the Offer are based on management estimates.
- The company operations are subject to volatility in the supply and pricing of raw materials and components. The company is dependent on its suppliers (the company's top 10 suppliers contributed to 89.65%, 86.30% and 76.00% of total purchases in Fiscals 2026, 2025 and 2024, respectively) for certain raw materials and components and if the company is unable to procure the required quality and quantity, at competitive prices, its business, financial condition, cash flows and results of operations may be adversely affected.
- Restrictions on or import duties relating to materials and equipment imported for the company's manufacturing operations as well as restrictions on or import duties levied on its products in the company's export markets may adversely affect its business, financial condition, cash flows and results of operations.
- Its may grow the company's business through acquisitions, joint ventures, joint development or consortiums, which may prove to be difficult to integrate and manage or may not be successful.
- The company has limited experience in the manufacturing of tubular towers for wind turbines, angular towers, solar stamping parts, prefabricated engineered building structures and battery energy storage systems which makes it difficult to accurately assess its future growth prospects and may negatively affect the company's business, financial condition, cash flows and results of operations.
- Any downgrade of the company's credit ratings may restrict its access to capital and thereby adversely affect the company's business, cash flows and results of operations.
- Under-utilization of the company's manufacturing capacities and inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on the company's business, financial condition, cash flows and results of operations.
- The company has incurred certain indebtedness and its inability to obtain further financing or meet the company's obligations, including financial and other restrictive covenants under its debt financing arrangements could adversely affect the company's business, financial condition, cash flows and results of operations. Further, the Company has availed unsecured loans from banks and other financial institutions, which may be recalled on demand.
- The company is subject to governmental regulation and its may incur material liabilities under, or costs in order to comply with, existing or future laws and regulation, and the company failures to comply may result in enforcements, recalls, and other adverse actions.
- The company does not execute long-term agreements with most of its customers and the company's inability to procure new orders on a regular basis or at all may adversely affect its business, financial condition, cash flows and results of operations.
- The majority of the company's manufacturing facilities are located on premises/land held on leasehold basis. There can be no assurance that these lease agreements will be renewed upon termination, or that its will be able to obtain other premises on a leasehold basis on the same or similar commercial terms or at all.
- The Company has received several complaints in relation to a sub-judice dispute relating to the property underlying one of its manufacturing facilities, Unit OHTL Fittings. There is no assurance that further complaints, including from the Complainant or other third parties, will not be made against the Company in the future, which may divert the time and attention of its management and adversely affect the company's reputation.
- Certain of the company's Subsidiaries, Karamtara USA, Inc, Karamtara Italy SRL, Karamtara Renewables Saudi Limited, Karamtara Green Energy Limited and Hanwant Manbir Singh Foundation and its Associate, Clean Max Ame Private Limited, have incurred losses and witnessed negative operating cash flows (on a standalone basis) in Fiscals 2026, 2025 and 2024.
- The company is dependent on third-party transportation providers for the supply of materials for its manufacturing process and delivery of the company's finished products. Any delay or non-performance of obligations by such third-party transportation providers could adversely affect its business, financial condition, cash flows and results of operations.
- There are outstanding litigations against the Company, Directors and Promoters. An adverse outcome in any of these proceedings may affect its reputation and standing and impact the company's future business and could have a material adverse effect on its business, financial condition, cash flows and results of operations.
- The company's inability to effectively collect receivables and default in payment from its customers could result in the reduction of the company's profits and adversely affect its business, financial condition, cash flows and results of operations.
- The company's business has grown rapidly in recent years, and its may not be able to sustain the company's rate of growth in the future.
- The company is required to obtain, renew or maintain statutory and regulatory permits, licenses and approvals to operates its business, and any delay or inability in obtaining, renewing or maintaining such permits, licenses and approvals could result in an adverse effect on the company's business, financial condition, cash flows and results of operations.
- The company operates in highly competitive markets in each of its product categories and an inability to compete effectively may adversely affect the company's business, financial condition, cash flows and results of operations.
- The company operations requires a significant amount of working capital. Any inability to meet its working capital requirements may adversely affect the company's business, financial condition, cash flows and results of operations.
- The company has in the past entered into related party transactions and will continue to do so in the future and its cannot assure you that the company could not have achieved more favorable terms if such transactions had not been entered into with related parties.
- Certain of the company's corporate records and filings are not traceable and may have inadvertent errors or inaccuracies. Further, there were delays in completing certain of its statutory and regulatory filings. The company cannot assure you that regulatory proceedings or actions will not be initiated against the company in the future, and its will not be subject to any penalty imposed by the competent authority in this regard.
- The company has certain contingent liabilities that have not been provided for in its financial statements, which if they materialize, may adversely affect the company's financial condition.
- The company's success depends in large part upon its KMPs, SMPs and certain other employees and the company's inability to attract, train and retain such persons could adversely affect its business, financial condition, cash flows and results of operations.
- The company may be unable to adequately obtain, maintain, protect and enforce its intellectual property rights. The company may also be subject to intellectual property infringement claims, which may be expensive to defend and may disrupt its business and operations.
- Information relating to the historical capacity and capacity utilization of the company's manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and its future production and capacity may vary.
- The company is exposed to losses due to fraud, employee negligence, theft, embezzlement or similar incidents. Its operations also subject the company to fraud by its suppliers, any of which may have an adverse impact on the company's business, financial condition, cash flows and results of operations.
- The company's insurance coverage may not be sufficient or may not adequately protect it against risks and unexpected events, which may adversely affect the company's business, financial condition, cash flows and results of operations.
- Non-availability of contract workers at reasonable cost or any strikes, work stoppages or increased wage demands could lead to disruption in the company's manufacturing facilities, which could adversely impact its business, financial condition, cash flows and results of operations.
- The company's Promoters, Tanveer Singh, Rajiv Singh, Inderjeet Singh, Inderjeet Tanveer Singh Trust and Inderjeet Rajiv Singh Trust, will continue to retain significant shareholding in the Company after the Offer, which will allow them to exercise significant influence over it.
- An inability to establish and maintain effective internal controls could lead to an adverse effect on the company's business, results of operations, cash flows and financial condition.
- If the company fails to keep its technical knowledge and process know-how confidential, the company may suffer a loss of its competitive advantage.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior Shareholders' approval.
- The company operations are subject to strict quality requirements and any product defects or failures by the company or its suppliers to comply with quality standards may lead to cancellation of existing and future orders or liability claims, which in turn could have an adverse impact on the company's business, financial condition, cash flows and results of operations.
- Certain of the company's Promoters have given personal guarantees in relation to majority of the borrowings of the Company which if revoked may requires alternative guarantees, repayment of amounts due or termination of the facilities.
- The company's inability to accurately forecast customer demand and maintain an optimal inventory level could adversely affect its business, financial condition, cash flows and results of operations.
- The company cannot assure payment of dividends on the Equity Shares in the future and its ability to pay dividends in the future will depends on the company's earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements and the company may not be able to pay dividends in future.
- Certain sections of this Red Herring Prospectus disclose information from the F&S Report which has been prepared exclusively for the Offer and commissioned and paid for by the company for such purpose and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
- An inability to launch new and quality product offerings that address customer needs or adopt new technologies in the renewable energy and transmission line tower industries in an effective and timely manner may adversely affect the company's business, financial condition, cash flows and results of operations.
- The Company benefits from certain export benefits and other local state government incentives which are subject to the policies and decisions of the Government. Any reduction in or termination of incentives/subsidies/schemes the company enjoy or change in other favorable government policies resulting in reduction or termination of incentives/subsidies/schemes may affect its business, financial condition, cash flows and results of operations.
- The loss of accreditation for the company's manufacturing facilities and operations could damage its reputation, business, financial condition, cash flows and results of operations.
- Damage to and/or malfunction of any of the company operating systems or cyber security risks could disrupt its operations and adversely affect the company's business, financial condition, cash flows and results of operations.
- Improper storage, processing and handling of materials and products may cause damage to the company's inventory leading to an adverse effect on its business, results of operations and cash flows.
- The company's business prospects and future financial performance depends on the demand for solar power, transmission and wind power products which is subject to occasional/seasonal fluctuation, that may affect its business, financial condition, cash flows and results of operations.
- The company is exposed to risks in relation to the availability and fluctuations in the prices of power, fuel and water. Any shortage or non-availability of power, fuel and water at reasonable cost and in a timely manner could have an adverse impact on its business, financial condition, cash flows and results of operations.
- The company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance that may vary from any standard methodology that is applicable across the industry its operates.
- The Company will not receive any proceeds from the Offer for Sale portion.
- The interests of the company's Promoters, Promoter Group, Subsidiaries and Directors may cause conflicts of interest in the ordinary course of its business.
- Certain of the company's Promoters, Directors, Key Managerial Personnel and Senior Management may be interested in the Company and its Subsidiaries other than in terms of remuneration, perquisites or benefits and reimbursement of expenses.
- Certain of the company's Promoters does not have adequate experience in its line of business and have not actively participated in the business activities the company undertake, which may have an adverse impact on the management and operations of the Company.
The Issue type of Karamtara Engineering Ltd is Book Building.
The minimum application for shares of Karamtara Engineering Ltd is 59.
The total shares issue of Karamtara Engineering Ltd is 34448818.
Initial public offer of up to 34,448,818 equity shares of face value of Rs. 10 each ("Equity Shares") of Karamtara Engineering Limited ("Company") for cash at a price of Rs. 254 per equity share (Including a Share Premium of Rs. 244 per Equity Share) ("Offer Price") aggregating up to Rs. 875.00 Crores comprising a fresh issue of up to 26,574,803 equity shares of face value of Rs. 10 each aggregating up to Rs. 675 .00 Crores by the company ("Fresh Issue") and an offer for sale of up to 7,874,015 equity shares of face value of Rs. 10 each aggregating up to Rs. 200.00 Crores ("Offered Shares") by the selling shareholders (as Defined Below), consisting of up to 3,937,007 equity shares of face value of Rs. 10 each aggregating up to Rs. 100.00 Crores by Tanveer Singh and up to 3,937,007 equity shares of face value of Rs. 10/- each aggregating up to Rs. 100.00 Crores by Rajiv Singh (Collectively the "Promoter Selling Shareholders" / "Selling Shareholders", and such Equity Shares Offered by the Promoter Selling Shareholders, the "Offered Shares") ("offer for sale", and together with the fresh issue, the "Offer").
The company, in consultation with the brlms, may consider pre-ipo placement, prior to filing of the pre-ipo placement, if undertaken, will be at a price to be decided by its company, in consultation with the brlms. if the pre-ipo placement is completed, the amount raised pursuant to the pre-ipo placement will be reduced from the fresh issue, subject to compliance with rule 19(2)(b) of the securities contracts (Regulation) Rules, 1957, as amended. the pre-ipo placement, if undertaken, shall not exceed 20 % of the size of the fresh issue. prior to the completion of the offer, the company shall appropriately intimate the subscribers to the pre-ipo placement, prior to allotment pursuant to the pre-ipo placement, that there is no guarantee that the company may proceed with the offer or the offer may be successful and will result into listing of the equity shares on the stock exchanges. further, relevant disclosures in relation to such intimation to the subscribers to the pre-ipo placement (if Undertaken).
Price Band: Rs. 254 per equity share bearing face value of Rs. 10 each.
The floor price is 25.40 times of the face value of the equity shares.
Bids can be made for a minimum of 59 equity shares of face value of Rs. 10 each and in multiples of 59 equity shares of face value of Rs. 10 each thereafter.