Shree Karni Fabcom IPO Lists with 14.5% Premium Above IPO Price

Despite the downturn in the Indian stock market, Shree Karni Fabcom share price today debuted on the NSE EME Emerge platform at ₹260 per share, marking a notable increase of approximately 14.53% for the allottees compared to the issue price of ₹220 to ₹227 per equity share. However, the positive momentum didn't cease there. The stock continued its upward trajectory, reaching an intraday peak of ₹273 per share, triggering a 5% upper circuit within moments of its listing. Before its official listing, Shree Karni Fabcom shares were trading at a premium ranging from ₹325 to ₹30 in the unlisted market. This unregulated market is often referred to as the grey market. Investors often keep an eye on this market to gauge potential listing prices.

Shree Karni Fabcom IPO Subscription and IPO Details

Shree Karni Fabcom IPO offered its shares at a price range of ₹220 to ₹227 per share, with the public issue open for bidding from March 6th to 11th, 2024. Over four days, the SME IPO gained significant subscription demand reaching over 112 times the subscription level. This strong demand was evident in today's share listing. Investors had the opportunity to apply for the NSE SME IPO in lots, with one lot comprising 600 shares translating to a minimum investment of ₹1,36,200 for a retail segment allottee (₹227 x 600).

Read Shree Karni Fabcom IPO Subscribed 296.43 times

Shree Karni Fabcom IPO valued at ₹42.49 crore consisted solely of fresh issues. Ahead of the opening of the issue, Shree Karni Fabcom IPO raised ₹12.09 crore from anchor investors. As per Shree Karni Fabcom IPO RHP the net proceeds from the public issue will be utilized for funding the dyeing unit in Navsari District, Surat, Gujarat, acquiring new machines for the Palsana, Surat, Gujarat unit, supporting the company's working capital, and meeting general corporate funding requirements.

The IPO of Shree Karni Fabcom Ltd received an overwhelming response with an overall subscription of 296.43 times by the closing of bidding on March 11th, 2024. Retail segment witnessed a subscription of 330.45 times while the non-retail or HNI / NII portion saw a subscription of 461.58 times. QIB subscription ratio was also strong reaching 112.94 times by the close of subscription on the same day.

About Shree Karni Fabcom Ltd

Shree Karni Fabcom Ltd, founded in 2018, focuses on crafting tailored knitted and woven fabrics for various industries like luggage, medical equipment, furniture, footwear, and clothing. They focus on woven, knitted, coated fabrics and 100% polyester materials including technical textiles.Shree Karni Fabcom's production capacity includes 70,000 meters per day for weaving, 90,000 kilos per month for knitting and 50,000 meters per day for coatings. Shree Karni Fabcom primarily sells its products to companies that make branded luggage, shoes, and traders across 13 states. They mainly focus on serving businesses rather than individual consumers.The company employs 39 individuals. In the financial year 2023, its revenue jumped by over 51.89%, Additionally, its profit after tax increased by 7.85% compared to the previous year.

Also Read about Shree Karni Fabcom IPO

To Summarize

In comparison to another recent listing, Karni Fabcom debuted with a premium of 14.53%. However before its listing the IPO was trading at a higher premium in the unlisted market. Recently, we've observed a downturn in the market particularly in the mid cap and small cap indices. This weak market sentiment has had an impact on the listing of recent IPOs including Shree Karni Fabcom.