Shree Karni Fabcom
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 06 Mar 2024 – 11 Mar 2024
- Listing date
- 14 Mar 2024
- Face value
- ₹10 per share
- Issue price
- ₹227 per share
- Lot size
- 600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹42.49 Cr
- Market cap at offer price
- ₹161 Cr
- Promoter holding
- 96.16% → 70.07% pre-issue → post-issue
- ISIN
- INE0S4Y01010
- Registrar
- MAS Services Ltd.
- Lead managers
- Horizon Management Pvt.Ltd.
- Registered office
- Plot 188, 189, 190, Block No.314, Rajhans Texpa Village Baleshvar, Taluka Palsana, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 5,32,800 | — | — |
| Market maker | 93,600 | — | — |
Application size
Minimum 600 shares per lot, in multiples, at ₹227
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 600 | ₹1,36,200 |
| S-HNI (min) | 2 | 1,200 | ₹2,72,400 |
| S-HNI (max) | 7 | 4,200 | ₹9,53,400 |
| B-HNI (min) | 8 | 4,800 | ₹10,89,600 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.68 | 17.25 |
| P/E (×) | 21.25 | 13.16 |
| Price to book (×) | 6.17 | — |
| Market cap | — | ₹161 Cr |
Key performance indicators
- Return on net worth
- 42.56%
- ROCE
- 11.34%
- PAT margin
- 10.75%
- NAV per share
- ₹36.77
- Price to book
- 6.17
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Shree Karni Fabcom
Shree Karni Fabcom Limited ('SKFL') was originally formed as the limited liability partnership 'Shree Karni Fabcom LLP' on March 7, 2018, was converted into a private limited company on April 11, 2023, and into a public limited company with effect from a fresh certificate of incorporation dated October 20, 2023. Its promoters were earlier engaged in trading specialized technical textiles used in the luggage industry; the company began commercial production in July 2020 with an initial knitting capacity of 400 kilos per day, added a dedicated PVC/EVA lamination division in April 2023, and acquired a 66.67% stake in IGK Technical Textiles LLP (its subsidiary, engaged in weaving, coating, sizing and embossing) effective October 31, 2023. The company procures yarn, resin, acrylic and coating chemicals and manufactures woven fabrics (interlining, tafeta, matty), knitted fabrics (air mesh) and coated fabrics (PU/WR/AF coatings, PVC/EVA lamination), marketed under its brand 'SKFL', 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/polyurethane coating, 15,000/8,000 meters per day for PVC/EVA lamination and 40,000 meters per day heat embossing. Operating a Business-to-Business model, it sells on a purchase-order basis (without long-term agreements) to institutional manufacturers — including contract manufacturers of branded luggage, shoes and apparel — and to traders across India. Revenue from operations grew from ₹ 3,287.42 lakhs in Fiscal 2021 to ₹ 12,694.65 lakhs in Fiscal 2023 (a CAGR of 56.89%), with profit after tax rising from ₹ 153.48 lakhs to ₹ 555.25 lakhs over the same period; for the eight months ended November 30, 2023, revenue from operations was ₹ 7,572.22 lakhs. The IPO proceeds are intended to fund a dyeing unit at Navsari (₹ 3,070.48 lakhs), machinery for a new bag-manufacturing unit at Palsana (₹ 186.82 lakhs), working capital (up to ₹ 500.00 lakhs) and general corporate purposes.
Company Analysis
from RHPShree Karni Fabcom Limited is a Surat, Gujarat–based manufacturer of specialized technical textile fabrics — woven, knitted and coated (including 100% polyester and recycled polyester) — used in luggage, backpacks, shoes, chairs, medical arch supports and apparel, sold to manufacturers and traders across India.
Shree Karni Fabcom Limited ('SKFL') was originally formed as the limited liability partnership 'Shree Karni Fabcom LLP' on March 7, 2018, was converted into a private limited company on April 11, 2023, and into a public limited company with effect from a fresh certificate of incorporation dated October 20, 2023. Its promoters were earlier engaged in trading specialized technical textiles used in the luggage industry; the company began commercial production in July 2020 with an initial knitting capacity of 400 kilos per day, added a dedicated PVC/EVA lamination division in April 2023, and acquired a 66.67% stake in IGK Technical Textiles LLP (its subsidiary, engaged in weaving, coating, sizing and embossing) effective October 31, 2023. The company procures yarn, resin, acrylic and coating chemicals and manufactures woven fabrics (interlining, tafeta, matty), knitted fabrics (air mesh) and coated fabrics (PU/WR/AF coatings, PVC/EVA lamination), marketed under its brand 'SKFL', 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/polyurethane coating, 15,000/8,000 meters per day for PVC/EVA lamination and 40,000 meters per day heat embossing. Operating a Business-to-Business model, it sells on a purchase-order basis (without long-term agreements) to institutional manufacturers — including contract manufacturers of branded luggage, shoes and apparel — and to traders across India. Revenue from operations grew from ₹ 3,287.42 lakhs in Fiscal 2021 to ₹ 12,694.65 lakhs in Fiscal 2023 (a CAGR of 56.89%), with profit after tax rising from ₹ 153.48 lakhs to ₹ 555.25 lakhs over the same period; for the eight months ended November 30, 2023, revenue from operations was ₹ 7,572.22 lakhs. The IPO proceeds are intended to fund a dyeing unit at Navsari (₹ 3,070.48 lakhs), machinery for a new bag-manufacturing unit at Palsana (₹ 186.82 lakhs), working capital (up to ₹ 500.00 lakhs) and general corporate purposes.
Objects of the Issue
- Funding the capital expenditure setting up a dyeing unit in Navsari District, Surat, Gujarat Up to ₹ 3,070.48 lakhs p.84
- Funding the purchase of new machinery proposed to be installed at our new unit proposed to be set up for manufacturing bags in Palsana, Surat, Gujarat, with an intent to expand our product portfolio Up to ₹ 186.82 lakhs p.88
- Funding working capital requirements of our Company Up to ₹ 500.00 lakhs p.89
- General corporate purposes [•] (to be finalized on determination of the Issue Price; shall not exceed 25% of the Gross Proceeds of the Issue) p.92
Issue Structure
- Total Issue
- Upto 18,72,000 Equity Shares aggregating Up to ₹ [●] lakhs
- Fresh Issue
- Upto 18,72,000 Equity Shares aggregating Up to ₹ [●] lakhs (of which upto 93,600 Equity Shares reserved for the Market Maker; Net Issue upto 17,78,400 Equity Shares)
- Offer for Sale
- Nil
- Face Value
- ₹ 10/- each
Business Model
The company earns revenue by manufacturing specialized technical textile fabrics (woven, knitted and coated, branded 'SKFL') from yarn, resin, acrylic and coating chemicals and selling them on a Business-to-Business, purchase-order basis to luggage, medical arch support, chairs, shoes and apparel manufacturers (including contract manufacturers of renowned brands) and to other textile intermediaries/traders across India, without long-term customer agreements. Its subsidiary, IGK Technical Textiles LLP, undertakes the weaving, coating, sizing and embossing operations outsourced by the company (with terms mutually decided between them), and the company is pursuing forward integration into manufacturing finished bags.
Business Segments
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Manoj Kumar Karnani | Promoter; Whole-Time Director | 24.04% | 17.68% |
| Raj Kumar Agarwal | Promoter; Whole-Time Director | 24.04% | 17.68% |
| Rajiv Lakhotia | Promoter; Managing Director | 24.04% | 17.68% |
| Radhe Shyam Daga | Promoter; Whole-Time Director | 24.04% | 17.68% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.