Thursday, February 29, 2024

Shree Karni Fabcom Limited IPO Opens on March 06, 2024

Issue Size – 18,72,000 Equity Shares of ₹ 10 each

Issue Size – ₹ 41.18 Crores - ₹ 42.49 Crores

Price Band – ₹ 220 - ₹ 227

Market Lot Size – 600 Equity Shares 

Mumbai, 29 February, 2024 – Shree Karni Fabcom Limited, one of the leading player in the manufacturing of specialized technical textiles, has announced its plan to go public with an Initial Public Offering on March 06, 2024. The company is aiming to raise ₹ 42.49 Crore on upper price band through this IPO, with shares set to be listed on the NSE Emerge platform.

The issue size is Up to 18,72,000 equity shares at face value of ₹ 10 each. 

Equity Share Allocation

QIB Anchor Portion – Up To 5,32,800 Equity Shares 

Qualified Institutional Buyers (QIB) – Up To 3,55,800 Equity Shares 

Non-Institutional Investors (NII) – Up To 2,67,000 Equity Shares 

Retail Individual Investors (RII) – Up To 6,22,800 Equity Shares 

Market Maker – Up To 93,600 Equity Shares 

The net proceeds from the IPO will be utilized for funding capital expenditure, including the setting up of a dyeing unit in Navsari District, Surat, Gujarat, and the purchase of new machinery proposed to be installed at a new unit for manufacturing bags in Palsana, Surat, Gujarat, with the intent to expand their product portfolio. Funds will also be allocated for meeting working capital requirements of the company and meeting general corporate expenses. The bidding for the Anchor portion will open on March 05, 2024, and the issue will close on March 11, 2024.

The Book Running Lead Manager to the Issue is Horizon Management Private Limited. The Registrar to the Issue is MAS Services Limited.

Mr. Rajiv Lakhotia, Managing Director of Shree Karni Fabcom Limited expressed, “Embarking on this momentous journey of taking Shree Karni Fabcom Limited public with our IPO fills us with immense pride and excitement. Our journey has been characterized by a relentless commitment to quality and innovation in the manufacturing of specialized technical textiles.

We plan to allocate the proceeds towards funding capital expenditure, including the establishment of a state-of-the-art dyeing unit in Navsari District, Surat, Gujarat, as well as the acquisition of new machinery for our upcoming bag manufacturing unit in Palsana, Surat, Gujarat. Our commitment to excellence and innovation remains unwavering as we forge ahead in shaping the future of specialized technical textiles.”

Mr. Manav Goenka, Director of Horizon Management Private Limited said, “Entering a momentous phase in the journey for Shree Karni Fabcom Limited, this IPO signifies a remarkable leap towards new horizons. With a diversified product portfolio, the company has demonstrated its ability to meet the evolving needs of various industries. We are confident that Shree Karni Fabcom Limited's forward-thinking approach will enable it to seize emerging market opportunities and achieve continued success.”

About Shree Karni Fabcom Limited:

Shree Karni Fabcom Limited is a renowned player in the manufacturing of specialized technical textiles, serving diverse industries such as travel accessories, apparel, upholstery, and more. Their expertise spans woven, knitted, and coated fabrics, with a focus on 100% polyester materials. Operating under the brand 'SKFL', they offer a wide range of products tailored to meet various needs, from luggage and vehicle covers to medical arch supports and raincoats. With recent acquisition of a stake in IGK Technical Textile LLP, their capabilities have expanded significantly. Committed to continuous innovation, they have plans to establish a dyeing facility and diversify into bag manufacturing. Through a robust B2B model, they engage with institutional manufacturers and traders across India, ensuring the supply of top-notch technical textiles to both domestic and international markets.

In FY23, The Company Achieved a Revenue of ₹ 12,694.65 L, EBITDA of ₹ 1,519.16 L, & PAT of ₹ 555.25 L.


Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

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