Karbonsteel Engineering Ltd IPO
Status:
Overview
IPO date
09 Sept 2025 to 11 Sept 2025
Face value
₹ 10 per share
Price
₹ 151 to ₹159 per share
Issue Size
3,729,600 shares
(aggregating up to ₹ 59.3 Cr)
(aggregating up to ₹ 59.3 Cr)
Allotment Date
12 Sept 2025
Listing at
NSE
Issue type
Book Building - SME
Sector
Objectives of Karbonsteel Engineering Ltd IPO
Karbonsteel Engineering Ltd IPO Strategy
About Karbonsteel Engineering Ltd
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T&C*
Strengths vs Risks of Karbonsteel Engineering Ltd
Know the pros & cons
Strengths
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
- Our business is substantially dependent on certain key customers, from whom we derive a significant portion of our revenues. The loss of any significant customer may have a material and adverse effect on our business and results of operations.
- Our business is exposed to risks relating to delays in project execution and cost overruns, which may adversely affect our business, financial condition, results of operations and prospects.
- Our business is dependent on capital investments in industrial and infrastructure sectors and any slowdown in these sectors due to economic conditions, government policies, or project specific factors may materially and adversely affect our business, financial condition and results of operations.
- Failure to comply with stringent quality standards, inspection requirements and technical specifications may result in rework, delayed payments or termination of contracts, which could adversely affect our business, financial condition and results of operations.
- Our Company does not have long-term agreements with suppliers for our input materials and a significant increase in the cost of, or a shortfall in the availability, or deterioration in the quality, of such input materials could have an adverse effect on our business and results of operations.
- Our business is dependent on and will continue to depend on our Manufacturing Facilities and we are subject to certain risks in our manufacturing process due to the usage of heavy machinery in our manufacturing operations. Any slowdown or shutdown in our manufacturing operations or strikes or work stoppages could have an adverse effect on our business, cash flows, financial condition and results of operations.
- Our industry is labour-intensive which relies on Contract and Skilled Labour and any shortage of skilled labour, labour disputes, or wage cost increases may adversely impact our operations, project execution and financial performance.
- There are outstanding legal proceedings involving our Company. Any adverse decisions could impact our cash flows and profit or loss to the extent of demand amount, interest and penalty, divert management time and attention and have an adverse effect on our business, prospects, results of operations and financial condition.
- Our business is working capital intensive and delays in client payments, retention money, or extended credit terms may strain our liquidity, increase financing costs and impact profitability.
- The number of orders we have received in the past, our current order book and our growth rate may not be indicative of the number of orders we will receive in future.
- Our business operations are majorly concentrated in certain geographical regions and any adverse developments
affecting our operations in these regions could have a significant impact on our revenue and results of operations.
- The structural steel fabrication industry is highly competitive and increased competition may lead to reduced
revenues, pricing pressure, or a loss of market share, which may adversely affect our business, financial condition
and results of operations.
- Expansion of our existing manufacturing facility requires substantial capital outlay before we realize any benefits or returns on investments and is subject to the risk of unanticipated delays.
- There have been certain delays in payment of statutory dues in the past. Any delay in payment of statutory dues in
future, may result in the imposition of penalties and in turn may have an adverse effect on our business, financial
condition, results of operation and cash flows.
- Our dependence on a limited number of suppliers for procurement of raw materials and other consumables may
adversely affect our business, cash flows and results of operations.
- We intend to utilize a portion of the Net Proceeds for funding our capital expenditure requirements. We have
shortlisted vendors and obtained quotations from them, however, we are yet to place orders or enter into definitive
agreements with the vendors in relation to such capital expenditure requirements.
- We require certain approvals, licenses, registrations and permits to operate our business and failure to obtain or
renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate
our business may adversely affect our operations and financial conditions.
- Our failure to identify and understand evolving industry trends and preferences and to develop new products to meet our customers' demands may materially adversely affect our business.
- Our Company is in use of trademark, which is not registered under the Trademarks Act, 1999 as on date of Draft Red Herring Prospectus. Thus, we may be subject to claims alleging breach of third party intellectual property rights.
- We do not own all of our manufacturing facilities, registered office and warehouses and any non-renewal, termination, or disputes related to lease agreements may disrupt our operations and adversely affect our business, financial condition and results of operations.
- Any inefficiencies in inventory management may adversely impact our Business, Cash Flows and Financial Condition.
- A significant portion of our current assets comprises trade receivables and any delay, default, or failure to collect outstanding amounts may adversely impact our cash flows, profitability and financial condition.
- Under-utilization of our manufacturing capacities and an inability to effectively utilize our expanded capacities may adversely affect our business, financial performance and future growth prospects.
- Our Company had negative cash flows in the past, details of which are given below. Sustained negative cash flow could impact our growth and business.
- Any workplace accidents, operational hazards, or safety lapses at our manufacturing facilities may adversely impact our business, financial condition and reputation.
- We are dependent upon the experience and skill of our Promoters, Key Managerial Personnel and Senior
Management Personnel for conducting our business and undertaking our day-to-day operations. The loss of our inability to retain, such persons could materially and adversely affect our business performance. In addition, excess rate of attrition amongst the personnel engaged by our Company may have an adverse impact on our business operations.
- If we are not able to successfully manage our growth, our business and results of operations may be adversely affected.
- We have in the past entered into related party transactions and may continue to do so in the future.
- Changes in technology may render our current technologies obsolete or require us to make substantial investments.
- Negative publicity, customer dissatisfaction, or product-related concerns may damage our reputation, reduce customer confidence and adversely affect our business and financial performance.
- Our Promoters or directors do not possess experience in managing publicly listed companies.
- The average cost of acquisition of Equity Shares by our Promoters and Selling Shareholders could be lower than the Offer Price.
- Our insurance coverage may not be adequate to protect us against certain operating hazards and this may have a material adverse effect on our business.
- We have incurred significant indebtedness which exposes us to various risks which may have an adverse effect on our business and results of operations.
- Fraud, theft, employee negligence or similar incidents may adversely affect our results of operations and financial condition.
- We could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect our financial condition, results of operations and reputation.
- We have not identified any alternate source of funding and hence any failure or delay on our part to mobilize the required resources or any shortfall in the Offer proceeds may delay the implementation schedule.
- We are subject to the restrictive covenants of banks in respect of the Loans/ Credit Limits and other banking facilities availed from them.
- Our Company will not receive any proceeds from the Offer for Sale portion of the Offer.
- The Objects of the Offer for which funds are being raised, are based on our management estimates and have not been appraised by any bank or financial institution or any independent agency.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- Our ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- A portion of the Net Proceeds will be utilized for repayment or prepayment of certain loan facilities availed by our Company.
- Certain key performance indicators for certain listed industry peers included in this Draft Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
- Our Promoter and the Promoter Group will jointly continue to retain majority shareholding in our Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Our company is majorly dependent on third-party logistics service providers for the transportation of raw materials and finished products.
- Our Promoters (including Promoter Group), Directors, KMP's and Senior Management Personnel hold major portion of the Equity Shares of our Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
- Loans availed by our Company has been secured on personal guarantees of our Promoters. Our business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by our Promoters.
- There is no monitoring agency appointed by Our Company to monitor the utilization of the Offer proceeds.
- Information relating to our production capacities and the historical capacity utilization of our production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off and future production and capacity utilization may vary.
- Certain sections of this Draft Red Herring Prospectus disclose information from industry report commissioned and paid for by us and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.
- Our failure to identify and understand evolving industry trends and preferences and to develop new products to meet
our customers' demands may materially adversely affect our business.
- Our Company is in use of trademark, which is not registered under the Trademarks Act, 1999 as on date of Red
Herring Prospectus. Thus, we may be subject to claims alleging breach of third party intellectual property rights.
- We do not own all of our manufacturing facilities, registered office and warehouses and any non-renewal,
termination, or disputes related to lease agreements may disrupt our operations and adversely affect our business,
financial condition and results of operations.
- Any inefficiencies in inventory management may adversely impact our Business, Cash Flows and Financial
Condition
- A significant portion of our current assets comprises trade receivables and any delay, default, or failure to collect
outstanding amounts may adversely impact our cash flows, profitability and financial condition.
- Under-utilization of our manufacturing capacities and an inability to effectively utilize our expanded capacities may
adversely affect our business, financial performance and future growth prospects.
- Any workplace accidents, operational hazards, or safety lapses at our manufacturing facilities may adversely impact
our business, financial condition and reputation.
- We are dependent upon the experience and skill of our Promoters, Key Managerial Personnel and Senior
Management Personnel for conducting our business and undertaking our day-to-day operations. The loss of our
inability to retain, such persons could materially and adversely affect our business performance. In addition, excess
rate of attrition amongst the personnel engaged by our Company may have an adverse impact on our business
operations.
- There have been certain inaccuracy in relation to regulatory filings to be made with Roc. Any penalty or action
taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could
impact the reputation and financial position of the Company to that extent.
- If we are not able to successfully manage our growth, our business and results of operations may be adversely
affected.
- We have in the past entered into related party transactions and may continue to do so in the future.
- Changes in technology may render our current technologies obsolete or require us to make substantial investments.
- Negative publicity, customer dissatisfaction, or product-related concerns may damage our reputation, reduce
customer confidence and adversely affect our business and financial performance.
- Our Promoters or directors do not possess experience in managing publicly listed companies.
- The average cost of acquisition of Equity Shares by our Promoters and Selling Shareholders could be lower than
the Offer Price.
- Our insurance coverage may not be adequate to protect us against certain operating hazards and this may have a
material adverse effect on our business.
- We have incurred significant indebtedness which exposes us to various risks which may have an adverse-effect on
our business and results of operations.
- Fraud, theft, employee negligence or similar incidents may adversely affect our results of operations and financial
condition.
- We could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could
adversely affect our financial condition, results of operations and reputation.
- We have not identified any alternate source of funding and hence any failure or delay on our part to mobilize the
required resources or any shortfall in the Offer proceeds may delay the implementation schedule.
- We are subject to the restrictive covenants of banks in respect of the Loans/ Credit Limits and other banking facilities
availed from them.
- Our Company will not receive any proceeds from the Offer for Sale portion of the Offer.
- The Objects of the Offer for which funds are being raised, are based on our management estimates and have not
been appraised by any bank or financial institution or any independent agency.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including
prior shareholders' approval
- Our ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital
requirements and capital expenditures.
- A portion of the Net Proceeds will be utilized for repayment or prepayment of certain loan facilities availed by our
Company.
- Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have
been sourced from public sources and there is no assurance that such financial and other industry information is
complete.
- Our Promoter and the Promoter Group will jointly continue to retain majority shareholding in our Company after
the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Our company is majorly dependent on third-party logistics service providers for the transportation of raw materials
and finished products.
- Our Promoters (including Promoter Group), Directors, KMP's and Senior Management Personnel hold major
portion of the Equity Shares of our Company and are therefore interested in the Company's performance in addition
to their remuneration and reimbursement of expenses.
- Loans availed by our Company has been secured on personal guarantees of our Promoters. Our business, financial
condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any
personal guarantees provided by our Promoters.
- Information relating to our production capacities and the historical capacity utilization of our production facilities
included in this Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off
and future production and capacity utilization may vary.
- There can be no assurance that the Equity Shares offered through this offer will be listed on the SME Platform of
BSE.
- Certain sections of this Red Herring Prospectus disclose information from industry report commissioned and paid
for by us and any reliance on such information for making an investment decision in the Issue is subject to inherent
risks.
Karbonsteel Engineering Ltd Peer Comparison
Understand the company’s industry standing
Karbonsteel Engineering Ltd
Atmastco Ltd
Goodluck India Ltd
Face Value
10
10
2
Standalone / Consolidated
Standalone
Standalone
Consolidated
Total Income Rs. Cr.
273.0535
289.5704
3935.8906
EPS-Basis
12.78
7.8
50.66
EPS-Diluted
12.78
7.8
50.66
NAV Per Share
---
---
---
P/E-Basic EPS
---
31.28
19.32
P/E-Diluted EPS
---
---
---
RONW(%)
23.45
15.15
12.63
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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Enter details- PAN, Application number or DP client ID
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The IPO opens on 09 Sept 2025 & closes on 11 Sept 2025.
Karbonsteel Engineering Limited was incorporated on April 21, 2011 under the name of 'Karbon Steelmart Private Limited', a private limited Company, with the Registrar of Companies, Maharashtra. Further, Company name was changed from Karbon Steelmart Private Limited' to 'Karbonsteel Engineering Private Limited' on March 2, 2022. Thereafter, the status was converted from private limited to public limited and the name was changed to 'Karbonsteel Engineering Limited' vide fresh Certificate of Incorporation dated June 24, 2024 issued by the RoC, Central Processing Centre.
The Company is engaged in the business of structural engineering and fabrication, specializing in the design, manufacturing, and assembly of heavy and precision steel structures. 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. Their fabricated structures form an integral part of the construction, expansion or modernization of industrial and infrastructure projects, including industrial plants, high rise structures, railway bridges and other large-scale developments.
Some of their esteemed customers include Arcelor Mittal Nippon Steel India Limited, Tata Projects Limited, John Cockerill India Limited, Ray Engineering Private Limited, JSW Severfield Structures Limited and Panametrics Engineering Private Limited. In the past, Company operated in both manufacturing and trading, with trading primarily involving steel products such as hot-rolled plates, mild steel plates, mild steel angles, mild steel rounds, and steel channels. It works 2 manufacturing facilities at Umbergaon, District Valsad, Gujarat, and Khopoli, District
Raigad, Maharashtra into production of heavy and precision steel fabricated structures, PEBs and steel bridge structures, with a combined installed capacity of 32,400 MT per annum. Umbergaon facility commenced operations in 2017, while the Raigad facility has been operational since 2014. Both manufacturing facilities are ISO 9001:2015 certified for Quality Management Systems and ISO 14001:2015 certified for
Environmental Management Systems.
The Company has ramped up its allocation toward railway sector in FY 2025. It completed fabrication and supply of 10,000 MT of steel bridge structures work of Mumbai-Ahmedabad High-Speed Rail (MAHSR) project in FY 2025.
The Company launched the IPO by issuing 37,29,600 equity shares of Rs 10 each and raising Rs 59.30 Crore funds, consisting a fresh issue of 30,39,600 equity shares aggregating to Rs 48.33 Cr and the offer for sale of 6,90,000 equity shares aggregating to Rs 10.97 Cr in September, 2025.
Karbonsteel Engineering Ltd IPO will close on 11 Sept 2025.
- 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.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Shrenik Kirit Shah | 5406240 | 48.7 | 4992240 | 35.3 |
| 2 | Mittal Shrenik Shah | 2106160 | 18.98 | 1830160 | 12.94 |
| 3 | Smitaben Kirit Shah | 199840 | 1.8 | 199840 | 1.41 |
| 4 | Bhavin Kirit Shah | 299760 | 2.69 | 299760 | 2.12 |
- Our business is substantially dependent on certain key customers, from whom we derive a significant portion of our revenues. The loss of any significant customer may have a material and adverse effect on our business and results of operations.
- Our business is exposed to risks relating to delays in project execution and cost overruns, which may adversely affect our business, financial condition, results of operations and prospects.
- Our business is dependent on capital investments in industrial and infrastructure sectors and any slowdown in these sectors due to economic conditions, government policies, or project specific factors may materially and adversely affect our business, financial condition and results of operations.
- Failure to comply with stringent quality standards, inspection requirements and technical specifications may result in rework, delayed payments or termination of contracts, which could adversely affect our business, financial condition and results of operations.
- Our Company does not have long-term agreements with suppliers for our input materials and a significant increase in the cost of, or a shortfall in the availability, or deterioration in the quality, of such input materials could have an adverse effect on our business and results of operations.
- Our business is dependent on and will continue to depend on our Manufacturing Facilities and we are subject to certain risks in our manufacturing process due to the usage of heavy machinery in our manufacturing operations. Any slowdown or shutdown in our manufacturing operations or strikes or work stoppages could have an adverse effect on our business, cash flows, financial condition and results of operations.
- Our industry is labour-intensive which relies on Contract and Skilled Labour and any shortage of skilled labour, labour disputes, or wage cost increases may adversely impact our operations, project execution and financial performance.
- There are outstanding legal proceedings involving our Company. Any adverse decisions could impact our cash flows and profit or loss to the extent of demand amount, interest and penalty, divert management time and attention and have an adverse effect on our business, prospects, results of operations and financial condition.
- Our business is working capital intensive and delays in client payments, retention money, or extended credit terms may strain our liquidity, increase financing costs and impact profitability.
- The number of orders we have received in the past, our current order book and our growth rate may not be indicative of the number of orders we will receive in future.
- Our business operations are majorly concentrated in certain geographical regions and any adverse developments affecting our operations in these regions could have a significant impact on our revenue and results of operations.
- The structural steel fabrication industry is highly competitive and increased competition may lead to reduced revenues, pricing pressure, or a loss of market share, which may adversely affect our business, financial condition and results of operations.
- Expansion of our existing manufacturing facility requires substantial capital outlay before we realize any benefits or returns on investments and is subject to the risk of unanticipated delays.
- There have been certain delays in payment of statutory dues in the past. Any delay in payment of statutory dues in future, may result in the imposition of penalties and in turn may have an adverse effect on our business, financial condition, results of operation and cash flows.
- Our dependence on a limited number of suppliers for procurement of raw materials and other consumables may adversely affect our business, cash flows and results of operations.
- We intend to utilize a portion of the Net Proceeds for funding our capital expenditure requirements. We have shortlisted vendors and obtained quotations from them, however, we are yet to place orders or enter into definitive agreements with the vendors in relation to such capital expenditure requirements.
- We require certain approvals, licenses, registrations and permits to operate our business and failure to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate our business may adversely affect our operations and financial conditions.
- Our failure to identify and understand evolving industry trends and preferences and to develop new products to meet our customers' demands may materially adversely affect our business.
- Our Company is in use of trademark, which is not registered under the Trademarks Act, 1999 as on date of Draft Red Herring Prospectus. Thus, we may be subject to claims alleging breach of third party intellectual property rights.
- We do not own all of our manufacturing facilities, registered office and warehouses and any non-renewal, termination, or disputes related to lease agreements may disrupt our operations and adversely affect our business, financial condition and results of operations.
- Any inefficiencies in inventory management may adversely impact our Business, Cash Flows and Financial Condition.
- A significant portion of our current assets comprises trade receivables and any delay, default, or failure to collect outstanding amounts may adversely impact our cash flows, profitability and financial condition.
- Under-utilization of our manufacturing capacities and an inability to effectively utilize our expanded capacities may adversely affect our business, financial performance and future growth prospects.
- Our Company had negative cash flows in the past, details of which are given below. Sustained negative cash flow could impact our growth and business.
- Any workplace accidents, operational hazards, or safety lapses at our manufacturing facilities may adversely impact our business, financial condition and reputation.
- We are dependent upon the experience and skill of our Promoters, Key Managerial Personnel and Senior Management Personnel for conducting our business and undertaking our day-to-day operations. The loss of our inability to retain, such persons could materially and adversely affect our business performance. In addition, excess rate of attrition amongst the personnel engaged by our Company may have an adverse impact on our business operations.
- If we are not able to successfully manage our growth, our business and results of operations may be adversely affected.
- We have in the past entered into related party transactions and may continue to do so in the future.
- Changes in technology may render our current technologies obsolete or require us to make substantial investments.
- Negative publicity, customer dissatisfaction, or product-related concerns may damage our reputation, reduce customer confidence and adversely affect our business and financial performance.
- Our Promoters or directors do not possess experience in managing publicly listed companies.
- The average cost of acquisition of Equity Shares by our Promoters and Selling Shareholders could be lower than the Offer Price.
- Our insurance coverage may not be adequate to protect us against certain operating hazards and this may have a material adverse effect on our business.
- We have incurred significant indebtedness which exposes us to various risks which may have an adverse effect on our business and results of operations.
- Fraud, theft, employee negligence or similar incidents may adversely affect our results of operations and financial condition.
- We could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect our financial condition, results of operations and reputation.
- We have not identified any alternate source of funding and hence any failure or delay on our part to mobilize the required resources or any shortfall in the Offer proceeds may delay the implementation schedule.
- We are subject to the restrictive covenants of banks in respect of the Loans/ Credit Limits and other banking facilities availed from them.
- Our Company will not receive any proceeds from the Offer for Sale portion of the Offer.
- The Objects of the Offer for which funds are being raised, are based on our management estimates and have not been appraised by any bank or financial institution or any independent agency.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- Our ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- A portion of the Net Proceeds will be utilized for repayment or prepayment of certain loan facilities availed by our Company.
- Certain key performance indicators for certain listed industry peers included in this Draft Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
- Our Promoter and the Promoter Group will jointly continue to retain majority shareholding in our Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Our company is majorly dependent on third-party logistics service providers for the transportation of raw materials and finished products.
- Our Promoters (including Promoter Group), Directors, KMP's and Senior Management Personnel hold major portion of the Equity Shares of our Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
- Loans availed by our Company has been secured on personal guarantees of our Promoters. Our business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by our Promoters.
- There is no monitoring agency appointed by Our Company to monitor the utilization of the Offer proceeds.
- Information relating to our production capacities and the historical capacity utilization of our production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off and future production and capacity utilization may vary.
- Certain sections of this Draft Red Herring Prospectus disclose information from industry report commissioned and paid for by us and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.
- Our failure to identify and understand evolving industry trends and preferences and to develop new products to meet our customers' demands may materially adversely affect our business.
- Our Company is in use of trademark, which is not registered under the Trademarks Act, 1999 as on date of Red Herring Prospectus. Thus, we may be subject to claims alleging breach of third party intellectual property rights.
- We do not own all of our manufacturing facilities, registered office and warehouses and any non-renewal, termination, or disputes related to lease agreements may disrupt our operations and adversely affect our business, financial condition and results of operations.
- Any inefficiencies in inventory management may adversely impact our Business, Cash Flows and Financial Condition
- A significant portion of our current assets comprises trade receivables and any delay, default, or failure to collect outstanding amounts may adversely impact our cash flows, profitability and financial condition.
- Under-utilization of our manufacturing capacities and an inability to effectively utilize our expanded capacities may adversely affect our business, financial performance and future growth prospects.
- Any workplace accidents, operational hazards, or safety lapses at our manufacturing facilities may adversely impact our business, financial condition and reputation.
- We are dependent upon the experience and skill of our Promoters, Key Managerial Personnel and Senior Management Personnel for conducting our business and undertaking our day-to-day operations. The loss of our inability to retain, such persons could materially and adversely affect our business performance. In addition, excess rate of attrition amongst the personnel engaged by our Company may have an adverse impact on our business operations.
- There have been certain inaccuracy in relation to regulatory filings to be made with Roc. Any penalty or action taken by any regulatory authorities in future, for non-compliance with provisions of corporate and other law could impact the reputation and financial position of the Company to that extent.
- If we are not able to successfully manage our growth, our business and results of operations may be adversely affected.
- We have in the past entered into related party transactions and may continue to do so in the future.
- Changes in technology may render our current technologies obsolete or require us to make substantial investments.
- Negative publicity, customer dissatisfaction, or product-related concerns may damage our reputation, reduce customer confidence and adversely affect our business and financial performance.
- Our Promoters or directors do not possess experience in managing publicly listed companies.
- The average cost of acquisition of Equity Shares by our Promoters and Selling Shareholders could be lower than the Offer Price.
- Our insurance coverage may not be adequate to protect us against certain operating hazards and this may have a material adverse effect on our business.
- We have incurred significant indebtedness which exposes us to various risks which may have an adverse-effect on our business and results of operations.
- Fraud, theft, employee negligence or similar incidents may adversely affect our results of operations and financial condition.
- We could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect our financial condition, results of operations and reputation.
- We have not identified any alternate source of funding and hence any failure or delay on our part to mobilize the required resources or any shortfall in the Offer proceeds may delay the implementation schedule.
- We are subject to the restrictive covenants of banks in respect of the Loans/ Credit Limits and other banking facilities availed from them.
- Our Company will not receive any proceeds from the Offer for Sale portion of the Offer.
- The Objects of the Offer for which funds are being raised, are based on our management estimates and have not been appraised by any bank or financial institution or any independent agency.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval
- Our ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- A portion of the Net Proceeds will be utilized for repayment or prepayment of certain loan facilities availed by our Company.
- Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
- Our Promoter and the Promoter Group will jointly continue to retain majority shareholding in our Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Our company is majorly dependent on third-party logistics service providers for the transportation of raw materials and finished products.
- Our Promoters (including Promoter Group), Directors, KMP's and Senior Management Personnel hold major portion of the Equity Shares of our Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
- Loans availed by our Company has been secured on personal guarantees of our Promoters. Our business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by our Promoters.
- Information relating to our production capacities and the historical capacity utilization of our production facilities included in this Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off and future production and capacity utilization may vary.
- There can be no assurance that the Equity Shares offered through this offer will be listed on the SME Platform of BSE.
- Certain sections of this Red Herring Prospectus disclose information from industry report commissioned and paid for by us and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.
The Issue type of Karbonsteel Engineering Ltd is Book Building - SME.
The minimum application for shares of Karbonsteel Engineering Ltd is 1600.
The total shares issue of Karbonsteel Engineering Ltd is 3729600.
Initial public offer of upto 37,29,600 equity shares of face value of Rs. 10/- each (the "equity shares") of Karbonsteel Engineering Limited ("the company" or "KEL" or "the issuer") at an offer price of Rs. 159/- per equity share for cash, aggregating up to Rs. 59.30 crores ("public offer") comprising of a fresh issue of upto 30,39,600 equity shares aggregating to Rs.48.33 crores (the "fresh issue") and an offer for sale of upto 6,90,000 equity shares by the promoter selling shareholders,
Shrenik Kirit Shah and Mittal Shrenik Shah ("offer for sale") aggregating to Rs. 10.97 crores, (Hereinafter refferd as "promoter selling shareholders") out of which 1,88,000 equity shares of face value of Rs. 10/- each, at an offer price of
Rs. 159/- per equity share for cash, aggregating Rs.2.99 crores will be reserved for subscription by the market maker to the offer (the "market maker reservation portion"). The public offer less market maker reservation portion i.e. offer of 35,41,600 equity shares of face value of Rs. 10/- each, at an offer price of
Rs. 159/- per equity share for cash, aggregating Rs. 56.31 crores is herein after referred to as the "net offer". The public offer and net offer will constitute 26.37% and 25.04% respectively of the post-offer paid-up equity share capital of the company.