NSE SME Shree Karni Fabcom makes strong listing

Shares of Shree Karni Fabcom were quoting at Rs 273 on the NSE, a premium of 20.26% compared with the issue price of Rs 227.

The scrip was listed at Rs 260, a premium of 14.54% compared with the initial public offer (IPO) price. The stock is currently frozen at an upper limit of 5% over its listing price.

The counter hit a high of Rs 273 and a low of Rs 260. About 6.51 lakh shares of the company changed hands at the counter.

Shree Karni Fabcom's IPO was subscribed 197.28 times. The issue opened for bidding on 6 March 2024 and it closed on 11 March 2024. The price band of the IPO was fixed at Rs 220 to 227 per share.

The IPO comprised fresh issue of 18,72,000 shares. The promoter and promoter shareholding diluted to 70.07% from 96.16% pre-IPO.

The company intends to utilise the net fresh issue proceeds for funding the capital expenditure setting up a dyeing unit in Navsari District, Surat, Gujarat, 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, funding working capital requirements of the company and for general corporate purposes.

Ahead of the IPO, Shree Karni Fabcom on 5 March 2024, raised Rs 12.09 crore from anchor investors. The board allotted 5.32 lakh shares at Rs 227 per share to 4 anchor investor.

Shree Karni Fabcom is engaged in the manufacturing of technical textiles tailored for diverse industries such as luggage, medical arch support, chairs, shoes, and apparels. The company sells its products to various contract manufacturers of branded luggage and shoe manufacturers, traders, and others located in 13 states. As on 30 November 2023, the company has 39 employees.

The company recorded revenue from operations of Rs 75.72 crore and net profit of Rs 8.13 crore for the period as on 30 November 2023.

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