Ranbir Kapoor, Aamir Khan, Jasprit Bumrah, Rohit Sharma, others pump in Rs 105.7 crore in IPO-bound Karamtara Engineering

Karamtara Engineering IPO

Karamtara Engineering -- the solar mounting structures and tracker components manufacturer -- has raised Rs 105.7 crore from several investors including filmstars (Ranbir Kapoor, Aamir Khan, Karan Johar) and cricketers (Jasprit Bumrah, Rohit Sharma).

The company had filed draft red herring prospectus with the capital markets regulator SEBI in January this year to raise Rs 1,750 crore via initial public offering to cut down its debt burden.

The company has received intimations from its promoters Tanveer Singh and Rajiv Singh on April 26 and April 29, respectively, that they have transferred in total 34.09 lakh shares to several investors via secondary sale.

They sold these shares at a price of Rs 310 per share. At this price, the company demands valuation of Rs 10,411 crore post issue.

People related to film and cricket industries including Ranbir Kapoor, Aamir Khan, Karan Yash Johar, Bimal Parekh, Jasprit Bumrah, and Rohit Sharma picked 9,68,910 equity shares worth Rs 30.03 crore in the company on April 25.

India Opportunities Growth Fund - Pinewood Strategy also invested Rs 25.51 crore against 8.23 lakh shares in the company on April 28.

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Meanwhile, Karamtara that competes with listed entities like Inox Wind, KP Green Engineering, Premier Energies, Waaree Energies, and Suzlon Energy, had also raised Rs 307.17 crore via preferential allotment of 98.08 lakh shares to several investors at same price on January 10 this year.

Marquee names like Jagdish Naresh Master, Utpal Hemendra Sheth, Singularity Growth Opportunities Fund, Gaurav Trehan, Quantum State Investment Fund, Ananta Capital Venture Fund, Jaidev Rajnikant Shroff, Axia Select Opportunities Fund, Mithun Padam Sacheti and Siddhartha Sacheti, and MNI Ventures invested in the company via preferential allotment.

Mumbai-based Karamtara Engineering plans to raise Rs 1,350 crore via fresh issue component, and Rs 400 crore via offer-for-sale route. Promoters -- Tanveer Singh, and Rajiv Singh -- will be selling Rs 200 crore worth shares each in the offer-for-sale.

It intends to reduce its debt burden significantly as it plans to utilise Rs 1,050 crore out of fresh issue proceeds for repaying debt, and the remainder funds for general corporate purposes. As of November 2024, its total outstanding borrowings from banks and lending institutions of Rs 586.4 crore and outstanding acceptances pursuant to letters of credit amounting to Rs 733.6 crore.

The company is a backward integrated manufacturer of products for renewable energy and transmission lines sectors, with a total installed capacity of 5.67 lakh MTPA and 4.8 lakh pieces as of September 2024. It offers structures and fasteners in the solar energy and transmission sectors, and overhead transmission line hardware fittings and accessories.

The book running lead managers handling the public issue will be JM Financial, ICICI Securities, and IIFL Capital Services.

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