Karamtara Engineering IPO GMP Falls to ₹65; Issue 0.66x Subscribed on Day 1

9 Sep 2026 , 12:35 PM

The Karamtara Engineering IPO opened today, September 9, with investors placing bids for the ₹875 crore issue.

By 12:09 PM, the issue had received bids for 2.41 crore shares. That worked out to an overall subscription of 0.66 times.

The grey market, meanwhile, remains fairly upbeat.

Karamtara Engineering IPO GMP stood at ₹65 on September 9, according to the latest available update. The premium was ₹68 on the previous day. At the current GMP, the implied listing price comes to about ₹319 against the upper issue price of ₹254.

That would mean a listing gain of roughly 25.59%, if the grey-market premium holds until listing.

Of course, GMP can change quickly. It is an unofficial indicator, not a promise of where the stock will actually list.

Karamtara Engineering IPO GMP Today

The IPO opened with a price band of ₹241 to ₹254 per share. The latest GMP of ₹65 puts the estimated listing price at ₹319.

The grey-market premium has moved higher over the past few sessions. It was ₹40 on September 4, climbed to ₹55 over the weekend, and then moved up to ₹58 on September 7.

On September 8, it touched ₹68 before slipping slightly to ₹65 on the morning of September 9.

Here is how the GMP has moved:

Date	IPO Price	GMP	Estimated Listing Price	Indicative Gain
Sep 9, 2026	₹254	₹65	₹319	25.59%
Sep 8, 2026	₹254	₹68	₹322	26.77%
Sep 7, 2026	₹254	₹58	₹312	22.83%
Sep 6, 2026	₹254	₹55	₹309	21.65%
Sep 5, 2026	₹254	₹55	₹309	21.65%
Sep 4, 2026	₹254	₹40	₹294	15.75%

So far, the GMP has more than doubled from ₹40 on September 4 to ₹65.

The estimated listing price of ₹319 is simply the upper IPO price of ₹254 plus the current GMP of ₹65. Investors should not assume that the actual listing price will be the same.

Karamtara Engineering IPO Subscription Status

The first day of bidding has produced a mixed picture.

Qualified institutional buyers have shown the strongest interest. The QIB portion was subscribed 1.26 times by 12:09 PM.

Retail participation was slower. The retail portion stood at 0.42 times, while the non-institutional investor category was at 0.40 times.

Overall, investors had bid for 2,41,14,174 shares against the shares on offer.

The category-wise numbers were:

Category	Subscription
QIB	1.26x
NII	0.40x
S-NII	0.45x
B-NII	0.38x
RII	0.42x
Overall	0.66x

The institutional response stands out. QIB demand has already crossed the shares reserved for that category.

Retail investors, on the other hand, still have some ground to cover before reaching full subscription.

₹875 Crore Karamtara Engineering IPO

Karamtara Engineering is raising ₹875 crore through the public issue.

It isn’t entirely fresh capital. The IPO includes a fresh issue of 2.66 crore shares worth ₹675 crore and an offer for sale of 78.74 lakh shares worth ₹200 crore.

The IPO opened on September 9 and will close on September 11.

For retail investors, one application lot contains 59 shares. At the upper end of the price band, that means an investment of ₹14,986.

The shares are proposed to list on both NSE and BSE.

IPO Detail	Information
IPO dates	September 9–11, 2026
Issue size	₹875 crore
Price band	₹241–₹254
Lot size	59 shares
Retail investment	₹14,986
Fresh issue	₹675 crore
Offer for sale	₹200 crore
Issue type	Bookbuilding
Listing	NSE and BSE
Expected allotment	September 15, 2026
Tentative listing	September 17, 2026

JM Financial is the book-running lead manager for the issue. MUFG Intime India is the registrar.

What Karamtara Engineering Does

Karamtara Engineering has been around since 1996. Its business is closely linked to renewable energy and power transmission.

The company makes solar mounting structures, tracker components, fasteners and transmission-line hardware. It also manufactures lattice towers used in power transmission projects.

Its solar product range includes fixed-tilt structures and tracker components. On the transmission side, the company makes lattice towers with capabilities of up to 1,200 kV.

There is also a wind-energy expansion in the works. Karamtara is setting up a facility to manufacture tubular towers for wind turbines.

The company has built an export business as well. As of March 31, 2026, its products were being exported to more than 50 countries.

A Big Part of the Business Is Integrated Manufacturing

Karamtara’s manufacturing setup is one of the points investors may want to keep an eye on.

The company has its own galvanising facilities, with stated capacity of 258,000 MTPA. It also operates rolling mill furnaces.

That level of in-house capability gives the company greater control over parts of its supply chain. It can also reduce dependence on outside suppliers for certain manufacturing requirements.

Karamtara served 48 solar-product customers in FY2024. The number increased to 73 in FY2025 before coming down to 65 in FY2026.

Karamtara Engineering Financials

The company’s financial numbers have improved considerably over the last three years.

Total income rose from ₹2,427.12 crore in FY2024 to ₹3,165.36 crore in FY2025. It reached ₹4,316.36 crore in FY2026.

Profit growth has been even stronger.

PAT increased from ₹102.65 crore in FY2024 to ₹139.33 crore in FY2025. In FY2026, it jumped to ₹228.75 crore.

₹ Crore	FY2024	FY2025	FY2026
Assets	1,844.56	2,762.59	4,142.24
Total Income	2,427.12	3,165.36	4,316.36
EBITDA	262.93	346.83	498.11
PAT	102.65	139.33	228.75
Net Worth	552.92	982.67	1,219.40
Borrowings	508.51	556.28	1,030.13

Between FY2025 and FY2026, revenue increased by about 36%. PAT rose by roughly 64%.

EBITDA also moved from ₹346.83 crore to ₹498.11 crore.

Those are strong growth numbers. But there is another number worth noting: borrowings increased to ₹1,030.13 crore in FY2026 from ₹556.28 crore a year earlier.

Where Will the IPO Money Go?

Debt repayment is the main reason behind the fresh issue.

Karamtara intends to use up to ₹600 crore of the proceeds towards prepayment, repayment and other payment obligations related to borrowings and acceptances.

The balance is meant for general corporate purposes.

In simple terms, a sizeable portion of the fresh capital will go towards cleaning up the balance sheet rather than funding an entirely new expansion project.

That could help reduce the company’s debt burden. Investors will still need to watch how the borrowing position develops after the IPO.

Karamtara Engineering IPO Valuation

At the upper end of the price band, the post-issue P/E works out to 35.72 times, based on the figures provided.

The post-issue market capitalisation at the offer price is estimated at ₹8,174.30 crore.

Some of the other numbers are worth looking at too.

ROE improved from 18.13% in FY2025 to 20.77% in FY2026. EBITDA margin also moved up, from 10.98% to 11.55%.

ROCE was almost unchanged at 23.27%.

Debt-to-equity, however, increased from 0.57 to 0.84.

So, while profitability has improved, the balance sheet also deserves attention.

Karamtara Engineering IPO: GMP vs Subscription

There is an interesting contrast in the numbers on the first day.

The GMP suggests that grey-market participants expect a healthy listing premium. At ₹65, the implied premium is 25.59%.

But the IPO itself was only 0.66 times subscribed by the latest update.

That gap could narrow as bidding continues on September 10 and September 11. The QIB response will be particularly important because that portion has already crossed the one-time subscription mark.

Retail and NII demand will also need to pick up if the overall subscription figure is to move substantially higher.

What Investors Should Watch Now

There are two more days left for investors to place bids.

The GMP is one number to track, but it shouldn’t be the only one. Subscription levels, particularly from QIBs, will give a better idea of how demand is shaping up during the issue.

The company’s financial performance is another positive. Revenue and profit both grew strongly in FY2026.

At the same time, the IPO valuation isn’t particularly low, and borrowings have increased. These are factors that shouldn’t be overlooked simply because the GMP is currently showing a 25% potential listing premium.

The Karamtara Engineering IPO closes on September 11. The allotment is expected on September 15, followed by a tentative NSE and BSE listing on September 17.

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