Karbonsteel Engineering

September 8, 2025 – September 10, 2025

GMP Rumors *	₹17
Price	₹151 - ₹159
Lot size	800
Allotment	Sep 11, 2025
Listing	Sep 15, 2025

🔹 Lot Distribution (Retail vs HNI)

Category	Lots	Shares	Amount (₹)	Reserved (Application)
Individual	2	1,600	2,54,400	775
sHNI	3	2,400	3,81,600	74
bHNI	8	6,400	10,17,600	148

👉 Observation: Retail ma reserved application (775) khub vadhare chhe compared to HNI categories.

🔹 Reservation of Shares

Category	Shares Offered	% Allocation
Anchor	10,60,800	28.44%
QIB	7,08,000	18.98%
HNI	5,32,800	14.29%
Individual	12,40,000	33.25%
Market Maker	1,88,000	5.04%
Total	37,29,600	100%

👉 Observation: Sabse vadhare allocation Individual investors (33.25%) ne, pachi Anchor investors.

🔹 IPO Details

Detail	Value
Total Issue Size	37,29,600 shares (₹59.30 Cr)
Fresh Issue	30,39,600 shares (₹48.33 Cr)
Offer for Sale	6,90,000 shares (₹10.97 Cr)
Issue Type	Book Building IPO
Listing At	BSE SME
Pre-Issue Shares	1,11,02,222
Post-Issue Shares	1,41,41,822
Market Maker Reservation	1,88,000 shares (₹2.99 Cr)
Market Makers	Rikhav Securities Ltd, SS Corporate Securities Ltd

🔹 KPI (Performance)

KPI	Mar-25	Mar-24	Mar-23
ROE	27.19%	25.99%	19.51%
ROCE	24.63%	22.93%	19.05%
EPS	12.78	9.42	5.11
P/E (Pre IPO)	12.47	-	-
P/E (Post IPO)	15.88	-	-

👉 Observation: EPS consistently grow thayu chhe (5.11 → 12.78 in 3 years), ROE & ROCE pan strong chhe.

🔹 Financials (₹ Cr)

Year Ended	Assets	Total Income	PAT	EBITDA	Net Worth	Reserves	Borrowing
Mar-25	232.76	273.91	14.16	36.61	60.37	49.27	78.55
Mar-24	176.14	218.77	9.42	25.79	43.80	38.41	59.83
Mar-23	143.76	155.89	5.11	16.22	28.74	23.74	48.52

👉 Observation: Revenue & PAT ni growth 3 years ma consistent chhe, borrowing pan increase thayu chhe but net worth pan double thai gayu.

🔹 Peer Comparison (Valuation)

Company	P/E (x)	CMP (₹)	FV (₹)
Karbonsteel Engineering Ltd	15.88*	-	10.00
Atmastco Limited	31.28	243.95	10.00
Goodluck India Limited	19.32	978.6	2.00

👉 Observation: Karbonsteel no P/E (15.88) peers karta sasto chhe, valuation wise attractive.

🔹 Peer Comparison (Financial Performance)

Company	RoNW (%)	EPS (₹)
Karbonsteel Engineering Ltd	23.45%	12.78
Atmastco Limited	15.15%	7.80
Goodluck India Limited	12.63%	50.66

👉 Observation: Karbonsteel no RoNW (23.45%) & EPS (12.78) peers karta better chhe (except Goodluck India EPS bahu high chhe).

✅ Summary:

-----> Retail investors mate allocation sabse vadhare chhe.

-----> Financial growth strong, EPS double thai gayu 3 years ma.

-----> P/E valuation peers karta low, attractive lagtu chhe.

-----> Borrowings vadhya chhe but profit growth ne support kare chhe.

Karbonsteel Engineering Limited – Company Profile & Business Overview

Karbonsteel Engineering Limited, established in 2011, is a growing name in India’s engineering solutions sector. The company focuses on designing, manufacturing, and supplying premium steel products that serve multiple industries. Over the years, Karbonsteel has built a strong reputation in structural engineering, fabrication, and large-scale infrastructure projects, making it a reliable partner for both private and government contracts.

Industry Presence

Karbonsteel Engineering provides structural and fabrication solutions that support a wide range of industries, including:

➡ Steel Plants – supplying heavy and precision steel components
➡ Railway Bridges – delivering durable steel bridge structures
➡ Oil & Gas Plants – providing custom steel fabrication solutions
➡ Refineries – manufacturing critical components for energy infrastructure
➡ Infrastructure & Industrial Projects – supporting construction, modernization, and expansion

Manufacturing Facilities

The company operates two advanced manufacturing units located in Gujarat and Maharashtra.

Combined production capacity: 32,400 MT annually
Key products manufactured: Heavy Steel Structures, Pre-Engineered Buildings (PEBs), and Steel Bridges

These facilities are equipped with modern machinery and in-house testing, ensuring compliance with stringent quality standards.

Service Offerings

Karbonsteel Engineering Limited delivers a diversified range of products and services such as:

➡ Heavy Steel Fabricated Structures – Large, durable structures designed to withstand industrial and infrastructure loads.
➡ Precision Fabricated Steel Structures – High-accuracy customized components for critical industrial applications.
➡ Steel Bridge Structures – Strong and reliable components used in railway and road bridges with heavy load-bearing capacity.
➡ Pre-Engineered Buildings (PEBs) – Flexible, cost-efficient, and eco-friendly solutions for industrial and commercial infrastructure.

Strengths of Karbonsteel Engineering

✔ Proven Project Execution – The company has successfully delivered 10,000 MT of fabricated steel bridge structures for India’s first bullet train corridor (MAHSR project).
✔ Strong Order Book Growth – Order book expanded from ₹6,487.99 lakhs in FY23 to ₹32,981.97 lakhs by July 31, 2025, ensuring strong revenue visibility.
✔ Robust Manufacturing Infrastructure – Two advanced plants with 36,000 MT annual capacity support large-scale, timely, and quality-driven execution.

Weaknesses & Risks

⚠ Customer Concentration Risk – A major portion of revenue depends on a few large clients; losing them could impact profitability.
⚠ Project Execution Risk – Delays, rising raw material costs, or execution challenges may reduce margins and affect financial results.
⚠ Sector Dependency – Business growth is highly dependent on capital investment in infrastructure and industrial projects; any slowdown in these sectors can reduce demand.

Conclusion

Karbonsteel Engineering Limited has established itself as a prominent player in India’s steel fabrication and infrastructure solutions market. With proven execution, a rapidly growing order book, and strong in-house facilities, the company is well-positioned to benefit from India’s ongoing infrastructure expansion and industrial growth.

However, customer dependency and execution risks remain key factors to monitor. For investors tracking the Karbonsteel Engineering IPO, these strengths and risks provide valuable insight into the company’s long-term growth potential.