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Business News/ Markets / Ipo/  Shree Karni Fabcom IPO: From price band to GMP, all you need to know
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Shree Karni Fabcom IPO: From price band to GMP, all you need to know

The ₹42.49 crore initial public offering (IPO) of small and medium-sized enterprise Shree Karni Fabcom will open for subscription on Wednesday, March 6, 2024. The issue, which will close on Monday, March 11, has a price band in the range of ₹220 to ₹227 per share.

The ₹42.49 crore initial public offering (IPO) of small and medium-sized enterprise Shree Karni Fabcom will open for subscription on Wednesday, March 6, 2024. The issue, which will close on Monday, March 11, has a price band in the range of ₹220 to ₹227 per share.Premium
The 42.49 crore initial public offering (IPO) of small and medium-sized enterprise Shree Karni Fabcom will open for subscription on Wednesday, March 6, 2024. The issue, which will close on Monday, March 11, has a price band in the range of 220 to 227 per share.

The 42.49 crore initial public offering (IPO) of small and medium-sized enterprise Shree Karni Fabcom will open for subscription on Wednesday, March 6, 2024. The issue, which will close on Monday, March 11, has a price band in the range of 220 to 227 per share.

Shree Karni Fabcom GMP

Shree Karni Fabcom IPO GMP or grey market premium was 300, indicating that the company is estimated to list at 527, a 132.16 percent premium to its IPO price. The GMP for the firm has remained the same in the last 2 sessions and jumped from 200 on March 1.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Shree Karni Fabcom IPO Details

The IPO is entirely a fresh issue of 18.72 lakh shares.

Shree Karni has a minimum lot size of 600 shares. The minimum amount of investment required by retail investors is 1,36,200. The minimum lot size investment for HNI is 2 lots (1,200 shares) amounting to 2,72,400.

The company proposes to utilise the net proceeds from the issue towards 1) Funding the capital expenditure setting up a dyeing unit in Navsari District, Surat, Gujarat; 2) Funding the purchase of new machinery proposed to be installed at the new unit proposed to be set up for manufacturing bags in Palsana, Surat, Gujarat, with an intent to expand the product portfolio; 3) Funding working capital requirements of the company; and 4) General corporate purposes.

Read here: Exicom Tele Systems IPO: GMP signals robust listing gain for share allottees

The promoters of the company are Manoj Kumar Karnani, Radhe Shyam Daga, Rajiv Lakhotia, and Raj Kumar Agarwal. Currently they hold a 96.16 percent stake in the firm but post the issue, their stake will decrease to 70.07 percent.

Horizon Management Private Limited is the book-running lead manager of the Shree Karni Fabcom IPO, while Mas Services Limited is the registrar for the issue. The market maker for Shree Karni Fabcom IPO is MLB Stock Broking.

The allotment for the Shree Karni Fabcom IPO is expected to be finalised on Tuesday, March 12, 2024. Meanwhile, Shree Karni Fabcom IPO is likely to list on NSE SME with the tentative listing date fixed as Thursday, March 14, 2024.

Read here: Azad Engineering IPO gives 170% return to allottees in 2-month of share listing

About Shree Karni Fabcom

Incorporated in March 2018, Shree Karni Fabcom Limited produces customised knitted and woven fabrics for industries such as luggage, medical arch support, chairs, shoes, and apparel. They specialise in woven fabrics, knitted fabrics, coated fabrics, and 100% polyester, and source yarn, resin, acrylic, and coating chemicals to produce specialised technical textiles.

The manufacturing unit has modern, highly automated machines that produce specialised technical textiles with installed capacities of 70k meters/day for weaving, 90k kilos/month for knitting, 50k meters/day for coatings, 15k meters/day for PVC, 8k meters/day for EVA lamination, and 40k meters/day for heat embossing. The company markets and sells under its own brand 'SKFL'.

Read here: V R Infraspace IPO: Check GMP, subscription status on day 1, other key details

Should you apply?

"The company specializes in technical fiber and fabrics. It has also entered into bag manufacturing and specialized fabrics that are used across various purposes and this trade is run on a B2B model with many renowned customers. For the reported years, the company has posted growth in its top lines. While its bottom line posted pressure due to accounting adjustments for its expansion plans that are now fully ready to reap benefits and this is reflected in its current working for FY24 till November 30, 2023. The management is confident of maintaining this trend in the coming years with the addition of high-margin products in its portfolio. Based on the annualized super earnings of FY24, the issue appears reasonably priced. Investors may lap it up for the medium to long term rewards," said Dilip Davda, Contributig Editor, Chittorgarh.com.

 

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 04 Mar 2024, 05:43 PM IST
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