Shree Karni Fabcom Limited’s IPO consists of a fresh issue of 18,72,000 shares aggregating to INR 42.49 crores. The company plans to utilize net proceeds to set up a dyeing unit, purchase new machinery for product expansion, and fund the working capital requirement.
Shree Karni Fabcom IPO – Important Details
| Shree Karni Fabcom IPO Date | March 6, 2024 to March 11, 2024 |
| Shree Karni Fabcom IPO Listing Date | March 14, 2024 |
| Shree Karni Fabcom IPO Price | INR 220 to 227 per share |
| Shree Karni Fabcom IPO Lot Size | 600 Shares |
| Shree Karni Fabcom IPO Total Issue Size | INR 42.49 crores |
| Shree Karni Fabcom IPO Basis of Allotment | March 12, 2024 |
| Shree Karni Fabcom IPO Initiation of Refunds | March 13, 2024 |
| Shree Karni Fabcom IPO Credit of Shares to Demat | March 13, 2024 |
| Shree Karni Fabcom IPO Issue Type | Book Built Issue IPO |
| Shree Karni Fabcom IPO Listing At | NSE SME |
Shree Karni Fabcom Ltd IPO – Company Profile
The company manufactures technical textiles tailored for diverse industries, such as luggage, medical arch support, chairs, shoes, and apparel. The production process begins with yarn procurement and encompasses weaving, coating, printing, and finishing, resulting in knitted and woven fabrics crafted to meet the clients’ customized specifications.
Specializing in Woven Fabrics, Knitted Fabrics, Coated Fabrics, and 100% polyester, the company sources yarn, resin, acrylic, and coating chemicals to produce specialized technical textiles.
The Company specializes in converting yarn into fabric through the knitting of fabrics. It outsources the weaving, coating, sizing, and embossing of specialized technical textiles to its Subsidiary, IGK Technical Textile LLP.
The current manufacturing units consist of three facilities: a knitting facility, a PVC/EVA lamination facility, and an R&D facility. In addition, there are three more facilities in its subsidiary – a woven facility, a coating facility, and an embossing facility. The company uses the machinery installed to process and manufacture finished fabrics from yarn post-processing and chemical treatment.
Shree Karni Fabcom IPO – Fundamental Analysis
Shree Karni Fabcom Ltd’s IPO financials display remarkable revenue and equity growth alongside increased profitability. This positions it as an attractive investment in its sector, with a promising future driven by solid operational achievements and financial stability.
Revenue Growth:
The company’s revenue has shown impressive growth, more than tripling from ₹3,287.42 lakhs in FY2021 to ₹12,694.65 lakhs in FY2023. This indicates strong sales performance and market demand for its products.
Equity Growth:
Equity has nearly quadrupled, signifying investor confidence and potentially successful capital management strategies to fuel further growth.
Profitability:
Profit after tax has significantly increased, demonstrating the company’s growing operational efficiency and profitability.
Return on Net Worth (RoNW):
The RoNW has seen fluctuations, peaking at 38.96% in FY2022 before dropping to 21.34% in FY2023. Despite the decrease, the company maintains a solid return on equity.
Diluted EPS:
The Diluted EPS shows variability, with a notable peak in FY2022, indicating earnings power per share changes over time.
Asset and Liability Management:
Total assets have more than tripled, indicating substantial business expansion. Notably, total liabilities have decreased in FY2023, suggesting improved financial stability and effective debt management.
Shree Karni Fabcom Ltd IPO Financial Information
| Particular | As of 31 March 2021 | As of 31 March 2022 | As of 31 March 2023 |
| Revenue (₹ in lakhs) | 3,287.42 | 8,357.36 | 12,694.65 |
| Equity (₹ in lakhs) | 671.23 | 1,321.61 | 2,602.24 |
| Expenses (₹ in lakhs) | 3,121.56 | 7,839.58 | 11,853.12 |
| Profit and Loss After Tax (₹ in lakhs) | 153.48 | 514.84 | 813.44 |
| RoNW (%) | 22.87% | 38.96% | 21.34% |
| Diluted EPS only (₹) | 15.35 | 51.48 | 11.10 |
| NAV per Equity Share (₹) | 67.12 | 132.16 | 260.22 |
| Total Assets (in lakhs) | 2,743.05 | 5,911.11 | 9,864.25 |
| Total Liabilities (in lakhs) | 7,262.01 | 4,589.49 | 2,071.83 |
Shree Karni Fabcom Limited IPO Peer Comparison
Shree Karni Fabcom Limited, with a total revenue of ₹12,694.65 million and an EPS of ₹11.10, demonstrates solid performance with a 21.34% RoNW and a high NAV per equity share of ₹260.22, comparing favorably against Nobletex Industries in terms of NAV.
| Company | Total Revenue (₹ in millions) | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Shree Karni Fabcom Limited | 12,694.65 | 11.10 | 11.10 | 21.34% | 260.22 |
| Nobletex Industries Limited | 17,828.68 | 19.17 | 19.17 | 24.16% | 88.94 |
Shree Karni Fabcom Ltd IPO Objective
The main objective is to enhance operational efficiency and vertical integration by setting up a dyeing unit in Navsari, Gujarat, with an investment of INR 30.70 crores. Additionally, INR 1.86 crores will be allocated for new machinery in Palsana, Surat, and up to ₹ 5 crores for the working capital in 2025.
- To set up a dyeing unit in Navsari, Gujarat: Dyeing is an integral part of the fabric manufacturing process. The Company presently outsources the dyeing of its fabrics to third parties, and therefore, to integrate the said process into the company’s operations, it is proposing to set up a dyeing unit in Navsari District, Surat, Gujarat. The company plans to utilize INR 30.70 crores for the said purpose.
- To purchase new machinery: The company plans to buy new machinery proposed to be installed at the new unit proposed to be set up for manufacturing bags in Palsana, Surat. The company plans to utilize INR 1.86 crores for the said purpose.
- To fund the working capital requirements: The Company proposes to utilize up to ₹ 5 crores from the Net Proceeds towards funding its working capital requirements in Fiscal 2025.
Shree Karni Fabcom IPO Risks And Challenges
Shree Karni Fabcom faces risks, which include the company’s limited dyeing operating history, which complicates investor evaluation. Overreliance on the top 5 customers (60% revenue) and Maharashtra’s significant contribution (51% revenue) pose risks to revenue and operations.
- The Company has a very limited operating history of dyeing operations, which will make it difficult for the investors to evaluate the historical performance for future prospects.
- Almost 60% of the revenue comes from the company’s top 5 customers. Any decrease in revenues or sales from any one of the key customers may adversely affect the business and results of operations.
- The state of Maharashtra contributes almost 51% of the revenue. Any adverse developments affecting the operations in these regions could have an adverse impact on the revenue and results of operations.
Shree Karni Fabcom Ltd IPO – Industry & Market Potential
The future of the Indian textiles industry looks promising, buoyed by strong domestic consumption as well as export demand. India is working on various major initiatives to boost its technical textile industry.
Owing to the pandemic, the demand for technical textiles in the form of PPE suits and equipment is on the rise. The government supports the sector through funding and machinery sponsorship. Top players in the sector are achieving sustainability in their products by manufacturing textiles that use natural, recyclable materials.
The technical textiles market for automotive textiles is projected to increase to US$ 3.7 billion by 2027 from US$ 2.4 billion in 2020. Similarly, the industrial textiles market is likely to increase at an 8% CAGR from US$ 2 billion in 2020 to US$ 3.3 billion in 2027. The overall Indian textiles market is expected to be worth more than US$ 209 billion by 2029.
Shree Karni Fabcom Ltd IPO – Type of Offer
Shree Karni Fabcom Limited is offering an IPO comprising 18,72,000 shares worth INR 42.49 crores. The net proceeds will be used to establish a dyeing unit, acquire new machinery for product expansion, and meet working capital needs.
Shree Karni Fabcom IPO Offer Size
The offer size of Shree Karni Fabcom Limited’s IPO is INR 42.49 crores. The net proceeds will be used to establish a dyeing unit, acquire new machinery for product expansion, and meet working capital needs.
Shree Karni Fabcom Ltd IPO Allotment Structure
Shree Karni Fabcom’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) according to SEBI regulations. A portion of the offer is reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers, 15% for Non-Insitutional Buyers, and 35% for Retail Individuals. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation Portion: A portion of the issue, i.e., 5% of the issue up to 93,600 shares.
How to apply for a Shree Karni Fabcom Ltd IPO?
To apply for the Shree Karni Fabcom IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
1. Check for IPO Details: Once your account is active, you can check for the Sona
Machinery IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.
You can apply for the Shree Karni Fabcom IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Shree Karni Fabcom’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Shree Karni Fabcom IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Shree Karni Fabcom IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Shree Karni Fabcom IPO:
● Registrar’s Website: Visit the website of MAS Services Limited, the registrar of the Shree Karni Fabcom IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Shree Karni Fabcom Ltd IPO Offer Registrar
The registrar for the Shree Karni Fabcom Limited IPO is MAS Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
MAS Services Limited
T-34, 2nd Floor, Okhla Industrial Area,
Phase-II New Delhi- 110 020
Telephone: +91 112 638 7281/83
E-mail: [email protected]
Shree Karni Fabcom Limited IPO – FAQs
1. What is the allotment date of the Shree Karni Fabcom Limited?
The allotment date of the Shree Karni Fabcom Limited IPO is March 12, 2024.
2. What is the price band of the Shree Karni Fabcom IPO?
The price band of the issue is INR 220-227 per share.
3. What is the size of the Shree Karni Fabcom IPO?
Shree Karni Fabcom Limited’s IPO consists of a fresh issue of 18,72,000 shares aggregating to INR 42.49 crores. The company plans to utilize net proceeds to set up a dyeing unit, purchase new machinery for product expansion, and fund the working capital requirement.
4. What is the listing date of the Shree Karni Fabcom IPO?
The listing date of Shree Karni Fabcom’s IPO is Mach 14, 2024.
