Shree Karni Fancom Ltd IPO: Review, Valuation, Date & GMP

Shree Karni Fabcom Limited IPO - Complete Overview

Established in March 2018, Shree Karni Fabcom Limited specializes in manufacturing technical textiles tailored for various industries, including luggage, medical arch support, chairs, shoes, and apparels. 

Their expertise lies in producing Woven Fabrics, Knitted Fabrics, Coated Fabrics, and 100% polyester materials, utilizing yarn, resin, acrylic, and coating chemicals. 

The products of the company find applications across a diverse range of sectors, including luggage, roofing, agriculture net, vehicle covers, tents, armed forces fabric, sports kits, chairs, medical arch support, umbrellas, and raincoats, sold under its brand 'SKFL' in 13 states.

The company is proud recipients of the ISO 9001:2015 certification from INTERTEK for its management system. 

The manufacturing unit of the company is equipped with state-of-the-art automated machines, enabling them to produce specialized technical textiles at a large scale. 

With an installed capacity of 70,000 meters per day for weaving, 90,000 kilos per month for knitting, 50,000 meters per day for poly acrylic and polyurethane coating, 15,000 meters per day for PVC, 8,000 meters per day for EVA lamination, and 40,000 meters per day for heat embossing.

In terms of financial performance, the revenues from operations of the company for the eight-month period ending 30th November 2023 amounted to ₹7572.22 lakhs. For the fiscal years 2023, 2022, and 2021, the revenues stood at Rs.12694.65 lakhs, Rs.8357.36 lakhs, and Rs.3287.42 lakhs respectively.

 

Shree Karni Fabcom Limited IPO Overview

Shree Karni Fabcom Limited IPO date is slated to be open for subscription from March 6, 2024, to March 11, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Shree Karni Fabcom Limited IPO price is set in the range of Rs.220 to Rs.227 per share. 

The total issue size of this IPO amounts to Rs.42.49 Cr. The company has reserved 35% for retail investors, 50% for institutional investors, and 15% for non-institutional investors. 

 

Company Financial

Compared to the previous fiscal year, Shree Karni Fabcom Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has increased, while total borrowings also rose.

(Amount in Lakhs)

Period	30 Nov 2023	31 Mar 2023	31 Mar 2022
Total Assets	14,124.38	9,864.25	5,911.11
Total Revenue	7,599.48	12,704.05	8,365.18
PAT	813.44	555.25	514.84
Net worth	1,912.17	2,602.24	1,321.61
Reserve & Surplus	1,392.17	2,502.24	1,221.61
Total Borrowings	9,504.27	3,658.72	2,718.09

 

Detailed Revenue Breakup of the Company

(Amount in Lakhs)

Particulars	Nov 30, 2023	FY 2023	FY 2022
Of our Company	7,370.37	12,694.65	8,357.36
Of our Subsidiary	2,351.08	2,978.01	346.38

 

Revenue Bifurcation based on the Type of Customers 

(Amount in Lakhs)

Particulars	FY 21-22	FY 22-23	30-11- 2023
Soft and Hard Luggage	3,458.92	5,629.34	3,434.00
Back Packs	3,388.71	4,994.03	2,751.74
Shoes, chairs & medical arch support	1,509.73	2,071.28	1,386.47
Total	8,357.36	12,694.65	7,572.22

 

Product-wise Revenue Breakup

(Amount in Lakhs)

Products (Sub Products)	FY 21-22	FY 22-23	30-11- 2023
Knitted Fabrics (Airmesh)	837.00	1384.50	1161.20
Woven Fabrics (Linning used in Luggage)	3708.10	5582.00	3541.50
Woven Fabrics (Interlining used in bags)	506.30	453.30	386.12
Coated Fabrics (Fabrics)	3306.00	5274.90	2483.40
Total	8357.40	12694.70	7572.22

 

State-wise Revenue Break up

(Amount in Lakhs)

Name of the state	Nov 30, 2023	Mar 31, 2023	Mar 31, 2022
Maharastra	3,879.82	5,460.84	3,520.44
Gujarat	1,955.18	3,356.02	2,535.59
West Bengal	366.80	1,050.56	886.57
Haryana	346.20	188.45	205.12
Uttar Pradesh	298.89	707.12	112.95
Total	6,846.89	10,762.99	7,260.68

 

 

 

The Objective of the Issue

The company intends to allocate the Net Proceeds from the Issue to accomplish the following objectives:

1. Financing the capital expenditure for establishing a dyeing unit in Navsari District, Surat, Gujarat.

2. Funding the acquisition of new machinery planned for installation at the proposed new unit for bag manufacturing in Palsana, Surat, Gujarat, aimed at diversifying the company's product range.

3. Addressing the working capital needs of the Company.

4. Catering to general corporate purposes.

 

Peers of Shree Karni Fabcom Limited IPO

Name of the Company	Face Value (Rs.)	EPS (Rs.)	P/E Ratio
Shree Karni Fabcom Limited	10	11.10	-
Nobletex Industries Limited	10	19.17	-

 

IPO's Strengths 

• Established as a prominent specialized technical textile manufacturer, boasting a longstanding market presence.

• Location advantage enhances operational efficiency and accessibility.

• Commitment to Quality Assurance and Quality Control ensures the excellence of its products.

• Diverse product portfolio caters to a variety of market needs and demands.

• Government incentives further bolster its operations and growth prospects.

• Cost-effective production methods enable us to maintain competitive pricing while ensuring timely order fulfillment.

• The well-experienced management team of the company possesses proven project management and implementation skills.

 

IPO's Weaknesses 

• The company has yet to secure the necessary approvals, clearances, and permissions from relevant authorities for its proposed manufacturing units.

• Limited operating history exists for the company's dyeing operations.

• The company heavily relies on its Subsidiary, IGK Technical Textiles LLP, for weaving, coating, sizing, and embossing specialized technical textiles.

• The company is involved in outstanding litigations.

• Pending renewal of certain licenses, approvals, and registrations required for the company's operations and business.

• The company conducts its entire business operations from a single manufacturing unit in Surat.

 

 

 

IPO GMP Today

The Latest GMP of Shree Karni Fabcom Limited IPO is Rs.30.

 

Shree Karni Fabcom Limited IPO timetable (Tentative)

Shree Karni Fabcom Limited IPO is scheduled from March 6 to March 11, 2024, with allotment on March 12, refund initiation on March 13, and listing on March 14, 2024.

Events	Date
IPO Opening Date	March 6, 2024
IPO Closing Date	March 11, 2024
IPO Allotment Date	March 12, 2024
Refund initiation	March 13, 2024
IPO Listing Date	March 14, 2024

 

Shree Karni Fabcom Limited IPO Details 

Shree Karni Fabcom Limited IPO, with a face value of Rs.10 per share, opens on March 6 and closes on March 11, 2024, offering 1,872,000 shares at Rs.220 to Rs.227 per share, with a lot size of 600 shares, aiming to raise Rs.42.49 Cr, and will be listed on NSE SME.

IPO Opening & Closing Date	March 6, 2024 to March 11, 2024
Face value	Rs.10 per share
Issue Price	Rs.220 to Rs.227 per share
Lot Size	600 Shares
Price of 1 lot	Rs.136,200
Issue Size	1,872,000 Shares (aggregating up to Rs.42.49 Cr)
Fresh issue	1,872,000 Shares (aggregating up to Rs.42.49 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Mas Services Limited

 

 

 

Shree Karni Fabcom Limited IPO Lot Details 

For Shree Karni Fabcom Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (600 shares) at Rs.136,200 while for HNI investors, the minimum investment is 2 lots (1200 shares) at Rs.272,400.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

Shree Karni Fabcom Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

 

Promoters and Management of Shree Karni Fabcom Limited

• Radheshyam Daga

• Manoj Kumar Karnani

• Raj Kumar Agarwal

• Rajiv Lakhotia

Pre-issue Promoter shareholding	96.16%
Post-issue Promoter shareholding	70.07%

 

Shree Karni Fabcom Limited IPO Lead Managers

• Horizon Management Private Limited
  
  

Dividend Policy

The company didn’t pay dividends in the past three fiscal years. The future payment of the dividend depends on several factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by the Board.

 

 

Conclusion

Shree Karni Fabcom Limited stands as a prominent player in the specialized technical textile manufacturing sector, boasting a strong market presence. Over time, the company has shown steady enhancement in its financial performance. However, prospective investors are advised to thoroughly evaluate both the advantages and disadvantages of the upcoming IPO before making investment decisions.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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