Shree Karni Fabcom IPO

Shree Karni Fabcom Limited

₹1,32,000 /600 sharesMinimum Investment

Shree Karni Fabcom IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
NSE₹227.00₹260.00₹33.00 (14.54%)

Shree Karni Fabcom IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
6 Mar ‘24 - 11 Mar ‘24₹1,32,000600₹220 - ₹227
Issue SizeIPO Doc
42.49Cr
RHP PDF

About Shree Karni Fabcom

Shree Karni Fabcom Limited manufactures technical textiles for industries like luggage, medical arch support, chairs, shoes, and apparel. The company makes woven fabrics, knitted fabrics, coated fabrics, and 100% polyester. It sources yarn, resin, acrylic, and coating chemicals to produce specialized technical textiles. It converts yarn into fabric through knitting and outsources weaving, coating, sizing, and embossing to its subsidiary, IGK Technical Textile LLP. The company’s manufacturing unit has a daily weaving capacity of 70,000 meters, a monthly knitting capacity of 90,000 kilos, a daily poly acrylic and polyurethane coating capacity of 50,000 meters, a daily PVC lamination capacity of 15,000 meters, EVA lamination capacity of 8,000 meters, and a daily heat embossing capacity of 40,000 meters. The company’s current manufacturing units consists of three facilities - namely, knit facility, PVC/EVA lamination facility, and R&D facility. The company markets and sells its products across India under our brand ‘SKFL’. Recently, the company has acquired 66.67% stake in IGK Technical Textile LLP w.e.f. October 31, 2023, which is engaged in weaving, coating, sizing and embossing of specialized technical textile. ;
Parent Organisation
Shree Karni Fabcom Limited
Founded
2018
Managing Director
Mr. Rajiv Lakhotia

Strengths & Risks

  • The company initially focused on manufacturing woven fabrics and, in 2020, expanded into woven products like interlining woven and knitted woven. It now produces coated fabrics, including EVA and PVC laminated fabrics, offering products for luggage, roofing, agriculture, vehicle covers, tents, chairs, medical support, etc. The company is also planning to set up a dyeing unit for woven and knitted fabrics to enhance its product range.
  • The company is based in Gujarat, allowing it to use incentives under the "Technology Upgradation Fund Scheme" (TUFS) and "Amended Technology Upgradation Fund Scheme" (ATUFS) from the Central Government of India. It also uses incentives under the "Gujarat Textile Policy, 2012," provided by the State Government of Gujarat, entailing a 6% interest subsidy on availed loans.
  • The company reported revenue from operations of Rs. 32.87 cr, Rs. 83.57 cr, and Rs. 126.95 cr in FY 2021, 2022 and 2023 respectively. For the same time periods, it reported Profit after tax of Rs. 1.53 cr, Rs. 5.15 cr, and Rs. 5.55 cr respectively.
  • The company has received ISO 9001:2015 certification from INTERTEK. As per the company, this is a globally standardized certification that applies to all stages of production, covering semi-finished and finished textile products, along with accessory materials used in the process.
  • Apart from the current manufacturing unit, the company plans to establish two additional units – a Dyeing Unit in Navsari District, Surat, Gujarat, and a Bag Unit in Palsana, Surat. The proposed funding for these units includes Rs. 30.70 cr for the capital expenditure of the Dyeing Unit and Rs. 1.87 cr for purchasing plant and machinery for the Bag Unit. However, there is no assurance that the proposed manufacturing units will become operational as scheduled, or at all, or operate as efficiently as planned. The company has not yet obtained any of the approvals, clearances and permissions as may be required from the relevant authorities for the proposed manufacturing units.
  • The company relies heavily on a small number of customers for a substantial part of its revenue. Any reduction in sales or revenue from these key customers has the potential to negatively impact the company's business and operational results.
  • The company derives a significant portion of its sales from specific geographical regions, including Maharashtra, Gujarat, West Bengal, Uttar Pradesh and Haryana. Any adverse developments impacting operations in these regions may have an adverse effect on the company's revenue and operational results.
  • There are outstanding litigations involving the company. Any adverse outcome of these litigations could adversely affect its business and financial condition.
  • The company does not have long-term agreements with suppliers for raw material supply. The inability to acquire raw materials promptly and in adequate quantities may negatively impact operations, financial condition, and/or profitability.
  • The company operates solely from its manufacturing unit in Surat, and all facilities, warehouses, and godowns are concentrated in one geographical area. Any loss, shutdown, or disruption in this location could adversely affect business, financial condition, and operational results.

Financials

*All values are in Rs. Cr
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Application details

Apply asPrice bandApply upto
Regular220 - 227₹2 Lakh
High Networth Individual220 - 227₹2 - 5 Lakh
For Shree Karni Fabcom IPO, eligible investors can apply as Regular.
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