Karamtara Engineering shares list at 26% premium on NSE, BSE; here's how much investors made per lot

This reflects a premium of 25.98% over the IPO issue price of ₹254 per equity share.

Karamtara Engineering share price: Here's how much investors made per lot

A lot consisted of 59 shares and cost ₹14,986. Investors who received the Karamtara Engineering IPO allotment made ₹3,894 per lot, taking the value of their investment to ₹18,880, as per the listing price on the NSE.

The ₹875 crore initial public offering was a mix of a fresh issuance of ₹675 crore and an offer for sale (OFS) component of ₹200 crore by promoters Tanveer Singh and Rajiv Singh.

The net proceeds from the fresh issue will be used for the following objects:

• Funding pre-payment and repayment to lenders towards borrowings and acceptances.
• General corporate purposes.

"Our company expects to receive the benefits of listing of the equity shares on the Stock Exchanges, including to enhance our brand image among our existing and potential customers and creation of a public market for the equity shares in India," the firm said in its red herring prospectus (RHP).

The IPO was subscribed 62.63 times, as it got bids for 1,59,17,51,265 shares compared to 2,54,14,937 shares on offer, according to the NSE data. The quota for qualified institutional buyers (QIBs) received 159.59 times subscription, while the portion for non-institutional investors (NIIs) was subscribed 48.55 times and that of retail investors (RIIs) 13.26 times.

Before the IPO, the firm mobilised ₹262.50 crore from anchor investors, including HDFC Mutual Fund, Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, Nippon India Mutual Fund, SBI Life Insurance and HDFC Life Insurance Company, among others.

Karamtara Engineering is involved in making transmission line towers, wind energy structures, structural steel profiles, solar structures and tracker components and fasteners for India and overseas markets.