Karamtara Engineering IPO: Dates, Price Band, GMP and What the Prospectus Shows

Karamtara Engineering's first stated use of this money is paying down borrowings. The IPO is open from 9 September 2026 to 11 September 2026 at ₹241–₹254, raising ₹875 crore, of which ₹675 crore is fresh capital.

This page sets out what the filings actually say — the dates, the money, the ratios the prospectus discloses and the grey-market number doing the rounds — and is deliberately clear about which of those is a fact and which is a rumour. Live status, subscription and documents for this issue sit on its IPO Center page.

The offer, in the numbers that decide what you pay

• Price band: ₹241 to ₹254 per share, face value ₹10
• Lot size: 59 shares
• Minimum application: ₹14,986 at the upper band — one lot
• Total issue: ₹875 crore
• Split: ₹675 crore fresh issue, ₹200 crore offer for sale
• Type: Book Building
• Registrar: MUFG Intime India Private Limited
• Book-running lead managers: JM Financial Limited, ICICI Securities Limited and IIFL Capital Services Limited

A retail application is capped at ₹2,00,000, so the most you can put in is 13 lots — ₹1,94,818 at the upper band. Bidding above that moves your application into the non-institutional category, where the allotment maths is different. QIB, NII and retail categories explains what changes.

About 23% of the issue is an offer for sale, which means roughly that share of the money goes to selling shareholders rather than into the business. Fresh issue versus offer for sale explains why the split matters.

What the company says it will do with the money

The prospectus lists these objects for the fresh issue:

• Funding prepayment, repayment and/ or payment obligations to lenders towards borrowings and Acceptances, in part or full
• General corporate purposes

Objects are a commitment, not a forecast. They are disclosed in the offer document, monitored after listing, and changing them later needs shareholder approval — which is why they are one of the more reliable things in a prospectus.

Who the shares are reserved for, and what that tells you

The issue reserves 50% for qualified institutional buyers, 15% for non-institutional investors and 35% for retail.

That is the standard split for an issuer meeting the ICDR track-record test. Retail gets a third of the book, which is the more forgiving of the two structures when an issue is heavily subscribed.

The financials the prospectus actually discloses

These are the ratios from the company's own red herring prospectus, for the financial year ended 31 March 2026. We checked each of them against that document rather than taking them from an aggregator.

• Earnings per share: ₹7.83
• Net asset value per share: ₹41.72
• Return on net worth: 20.78%
• Return on equity: 20.77%
• Return on capital employed: 23.27%
• Operating EBITDA margin: 11.55%
• Net debt to equity: 0.72 times

At the upper band of ₹254, the issue is priced at about 32.4 times FY26 earnings. That is roughly 6.1 times the disclosed net asset value of ₹41.72 a share. Both are arithmetic on the two numbers above, not a valuation opinion — a multiple only means something next to comparable companies, which is what peer comparison in an IPO is for.

One note on that leverage figure, because the label matters. It is *net* debt to equity — cash, bank deposits and current investments are subtracted before dividing. Prospectuses that print both ratios show the plain one higher. Read it as the more flattering of the two measures.

How the book is filling

As of the last update from NSE's bidding data, the issue is subscribed 1.27x overall — qualified institutions 1.20x, non-institutional 1.93x, retail 1.07x.

Institutional demand usually arrives on the last day, so a low QIB number early in the window says less than it appears to. IPO subscription data explained covers how to read the figures while bidding is still open.

The grey market number, and what it is not

Our desk's most recent reading is a grey-market premium of ₹69 a share, about 27.17% of the upper band. Taken at face value that implies a listing around ₹323.

Now the caveat, and it is not a formality. The grey market is an unofficial, unregulated market in applications and allotments. It is not an exchange, the price is not a quotation, nobody supervises it, and the number changes daily on thin volume. It has been badly wrong in both directions. Treat it as sentiment, never as a forecast — grey-market premium risks sets out how it goes wrong, and IPO GMP explained covers what it is.

The dates that matter after you apply

• Bidding opens: 9 September 2026
• Bidding closes: 11 September 2026
• Basis of allotment: 15 September 2026
• Refunds initiated: 16 September 2026
• Shares credited to demat: 16 September 2026
• Listing: 17 September 2026

Bids have to be in before the close on the final day — an application after the cut-off does not count, and neither does a UPI mandate you never approved. That mandate is the single most common reason a valid-looking application fails; UPI mandate failures explains what goes wrong and the UPI IPO process covers doing it right.

Allotment is decided by the registrar, MUFG Intime India Private Limited, and in an oversubscribed retail category it is a lottery on lots rather than a proportionate cut. How to check your allotment status and the basis of allotment cover both halves of that.

Before you decide

Nothing on this page is a recommendation. It is the filing, the arithmetic on it, and one unofficial number clearly labelled as such. IPO risks for retail investors is worth reading precisely when an issue is being written about enthusiastically.

Figures come from the company's red herring prospectus and from NSE's issue data as at the dates stated, and issues change: bands are revised, dates move, and an issue can be withdrawn. Verify against the final prospectus before you apply. CAPITA1 is an information service, not a broker, and is not registered with SEBI as an investment adviser — nothing here is investment advice.