Karbonsteel Engineering: Pioneering Expansion through Strategic IPO

Karbonsteel Engineering has secured approximately Rs 17 crore from anchor investors in anticipation of its initial public offering (IPO) set to launch on September 9. The fundraising move saw participation from various entities including Subhkam Ventures I and Vikasa India EIF I Fund, as revealed by a BSE circular.

The company, a leader in engineering solutions for sectors like steel plants and railway bridges, allotted over 10.6 lakh equity shares to 10 entities at Rs 159 per share, culminating in a transaction size of Rs 16.86 crore. The IPO, slated to conclude on September 11, targets a total raise of Rs 59.30 crore.

Proceeds from the IPO will fund capital expenditures for expanding the Umbergaon facility and repaying debts. Chairman Shrenik Kirit Shah emphasized that the raised funds would enhance financial efficiency and allow for undertaking larger projects. The shares are expected to be listed on the BSE's SME platform.

(With inputs from agencies.)