Shree Karni Fabcom debuts with 15% premium on NSE SME platform
Shree Karni Fabcom's IPO listed on NSE SME platform with a 14.5% premium. Investors subscribed over 200 times, raising Rs 42 crore for capital expenditure on a dyeing unit, machinery, and manufacturing technical textiles like woven and knitted fabrics.
The shares of listed with a premium of 14.5% on the platform on Thursday. The stock debuted at Rs 260 as against an offer price of Rs 227.Ahead of the listing, the company's shares traded with a GMP of Rs 25 in the unlisted .
The received overwhelming response from investors with an overall subscription of over 200 times at close. The issue was entirely a fresh equity issue of 18.72 lakh shares and through the offer, it raised Rs 42 crore.
The net proceeds from the public offer will be used for funding capital expenditure towards setting up of a dyeing unit, purchase of new machinery, working capital requirements as well as general corporate purposes.
The company is engaged in the business of manufacturing technical textile for the luggage, medical arch support, chairs, shoes and apparels industry. It specialises in woven fabrics, knitted fabrics, coated fabrics, 100% polyester and recycled polyester fabric.
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Fabcom procure yarn, resin, acrylic and coating chemicals to manufacture specialized technical textiles and sell them to various luggage, medical arch support, chairs, shoes and apparels manufacturers and other textile intermediaries.
The fabric manufactured by the company also has diverse applications for luggage, roofing, agriculture net, vehicle covers, tents,
armed forces fabric, sports-kits, chairs, medical arch support, umbrella and rain coats amongst others.
Its manufacturing unit is equipped with automated machines for manufacturing of specialized technical textile with 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.
India is the second largest producer of polyester in the world and is now emerging as a key player in the technical textiles industry contributing to a market size of $19 billion.
For the period ended November 2023, the company clocked revenues of Rs 75.72 crore and net profit of Rs 8.13 crore.
Horizon Management is acting as the lead manager to the issue and Mas Services is the registrar.
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Source: Stocks-Markets-Economic Times
