Shree Karni Fabcom IPO: Issue was subscribed over 14.93 times on the first day, see GMP and other details

Shree Karni Fabcom IPO: Small and medium enterprise (SME) initial public offering (IPO) Shree Karni Fabcom opened for subscription on March 6 and will take place on March 11.

Shree Karni Fancom Limited produces customized knitted and woven fabrics for industries such as luggage, medical arch support, chairs, footwear and apparel. They specialize in woven fabrics, knitted fabrics, coated fabrics and polyesters, sourcing yarn, resin, acrylic and coating chemicals to create specialty technical textiles.

Shree Karni Fabcom Limited's revenue increased by 51.87% and profit after tax (PAT) increased by 7.85% in FY23.

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Shree Karni Fabcom IPO Subscription Status

Shree Karni Fabcom's IPO was subscribed more than 14.93 times on the first day of bidding on March 6. According to data available on NSE, SME's IPO received 2,00,00,400 share applications against 13,39,200 shares on offer on the first day.

The retail category received 1,70,74,200 applications while the QIB and NII categories received 13,800 and 29,12,400 applications respectively on the first day of subscription.

Shree Karni Fabcom IPO details

Shree Karni Fabcom IPO is a book edition of ₹42.49 crores. The issue is a fresh issue of 18.72 lakh shares only.

The price range for the SME IPO was set at ₹220 tonnes ₹227 per share. Investors can bid for at least 600 shares and multiples thereof. The minimum investment amount required by private investors is ₹136,200.

The allotment for the IPO of Shree Karni Fabcom is expected to be completed on Tuesday, March 12, 2024 and will be listed on the NSE SME. The provisional trading date is Thursday, March 14, 2024.

The medium-sized company had increased ₹12.09 crore from anchor investors on March 5, a day before the tender.

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The founders of the company are Manoj Kumar Karnani, Radhe Shyam Daga, Rajiv Lakhotia and Raj Kumar Agarwal.

The company proposes to use the net proceeds from the issue for: Financing the capital expenditure for setting up a dyeing plant in Navsari district, Surat, Gujarat, Financing the purchase of new machinery to be installed in the new plant for manufacturing bags at Palsana, Surat, Gujarat, with a view to expand the product portfolio, fund working capital requirements of the company and fulfill general corporate purposes.

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

Shree Karni Fabcom IPO GMP today

Shares of Shree Karni Fabcom are trading at a premium of ₹325 in the Gray Market Premium (GMP) on March 6th. This means that the estimated listing price of Shree Karni could be Fabcom shares ₹552, which is 143.7 percent higher than the issue price of ₹227, according to market observers.

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