Shree Karni Fabcom IPO: The SME’s initial public offering opened for subscription on March 6 and will close on March 11.
Shree Karni Fabcom Limited specializes in producing customized knitted and woven fabrics for various industries, including luggage, medical arch support, chairs, shoes, and apparel. Their expertise lies in Woven Fabrics, Knitted Fabrics, Coated Fabrics, and polyester, sourcing yarn, resin, acrylic, and coating chemicals to create specialized technical textiles.
In FY23, Shree Karni Fabcom Limited witnessed a 51.87% increase in revenue and a 7.85% rise in profit after tax (PAT).
Subscription Status:
The IPO garnered over 14.93 times subscription on the first day of bidding. Data from NSE revealed 2,00,00,400 share applications against the offered 13,39,200 shares. The retail category received 1,70,74,200 applications, while the QIB and NII categories obtained 13,800 and 29,12,400 applications, respectively, on the first day of subscription.
IPO Details:
Shree Karni Fabcom IPO is a book-built issue of ₹42.49 crores, entirely comprising a fresh issue of 18.72 lakh shares. The price band is set at ₹220 to ₹227 per share, with a minimum bid of 600 shares. Retail investors need a minimum investment of ₹136,200.
Allotment and Listing:
The allotment is expected to be finalized on March 12, 2024, and the listing on NSE SME is tentatively scheduled for March 14, 2024. The company raised ₹12.09 crore from anchor investors on March 5, a day before the bidding began.
Utilization of Funds:
The net proceeds from the issue will be used for funding capital expenditure for setting up a dyeing unit in Navsari District, Surat, Gujarat, purchasing new machinery for a unit in Palsana, Surat, Gujarat, working capital requirements, and general corporate purposes.
Key Personnel:
The promoters of the company are Manoj Kumar Karnani, Radhe Shyam Daga, Rajiv Lakhotia, and Raj Kumar Agarwal.
Lead Manager and Registrar:
Horizon Management Private Limited is the book running lead manager, and Mas Services Limited is the registrar for the issue. MLB Stock Broking is the market maker.
Grey Market Premium (GMP):
Shree Karni Fabcom shares are trading at a premium of ₹325 in the grey market premium (GMP) on March 6. This suggests an estimated listing price of ₹552, which is 143.7% higher than the issue price of ₹227, as per market observers.
