Karbonsteel Engineering's shares listed on BSE NSE on Tuesday at ₹185.10 against an issue price of ₹159, resulting in a 16.42% gain for investors. Post-listing, it reached the upper circuit of ₹194.35. The company's IPO, valued at ₹59.3 crore, was oversubscribed by more than 76 times.
Karbonsteel Engineering IPO Listing: Karbonsteel Engineering, a provider of steel and structural engineering solutions, made a b debut on BSE NSE on Tuesday. The company's shares listed at ₹185.10 against an issue price of ₹159 and quickly touched the upper circuit of ₹194.35. The ₹59.3 crore IPO received an overwhelming response from investors, being subscribed over 76 times. The funds raised will be utilized by the company for the expansion of its Ambernath facility, debt reduction, and working capital requirements.
Spectacular IPO Listing
The company had set its issue price at ₹159 per share. On BSE NSE, it listed at ₹185.10, providing investors with an immediate gain of approximately 16.42% upon listing. Subsequently, the share witnessed further momentum, rising to ₹194.35. At this price, the stock hit the upper circuit. Consequently, those who invested in the IPO received a profit of nearly 22.23% on the very first day.
Tremendous Response to IPO
Karbonsteel Engineering's IPO was open from September 9 to September 11. During this period, investor interest was exceptionally high. According to the data, the IPO received a total subscription of 76.59 times. The Qualified Institutional Buyers (QIB) portion was subscribed 121.61 times, the Non-Institutional Investors (NII) portion saw 85.99 times subscription, and the retail investor portion was subscribed 46.84 times. These figures clearly demonstrate the b confidence investors placed in the company.
Company Business and Expansion
Karbonsteel Engineering was established in 2011. The company provides structural engineering and fabrication solutions to several critical sectors, including steel plants, railway bridges, oil and gas plants, and refineries. The company operates two major manufacturing facilities, one in Gujarat and another in Maharashtra. These plants produce heavy steel structures, pre-engineered buildings, and steel bridges. Their combined annual capacity is 32,400 tons.
Utilisation of Funds Raised
The company launched an IPO worth ₹59.30 crore. This comprised ₹48.33 crore from the issuance of new shares and the sale of 6.90 lakh shares through an offer for sale. The proceeds from the offer for sale were distributed to the existing shareholders, while the funds raised from the new shares will be used by the company for several purposes.
Approximately ₹12.29 crore will be invested in constructing a new shed at the Ambernath manufacturing unit. Additionally, ₹3.08 crore will be used for debt repayment. ₹25.25 crore has been allocated to meet working capital requirements, and the remaining amount will be used for general corporate purposes.
Strong Financial Position
The company's financial figures also indicate a robust position. In the fiscal year 2023, the company reported a net profit of ₹5.11 crore. This increased to ₹9.42 crore in the subsequent fiscal year 2024 and further rose to ₹14.16 crore in fiscal year 2025.
The company's total revenue has also shown consistent growth, increasing at a compound annual growth rate of over 32% to reach ₹273.91 crore in fiscal year 2025.
While the company's debt has also increased, standing at ₹48.52 crore at the end of fiscal year 2023, it grew to ₹59.83 crore in fiscal year 2024 and ₹78.55 crore in fiscal year 2025. Despite this, the company's reserves and surplus have shown continuous improvement, growing from ₹23.74 crore in 2023 to ₹49.27 crore in 2025.
