Shree Karni Fabcom IPO: From price band to GMP, all you need to know
₹42.49 crore initial public offering (IPO) of small and medium-sized enterprise Shree Karni Fabcom will open for subscription on Wednesday, March 6, 2024. The issue, which will close on Monday, March 11, has a price band in the range of ₹220 to ₹227 per share. Shree Karni Fabcom IPO GMP or grey market premium was ₹300, indicating that the company is estimated to list at ₹527, a 132.16 percent premium to its IPO price.
The GMP for the firm has remained the same in the last 2 sessions and jumped from ₹200 on March 1. 'Grey market premium' indicates investors' readiness to pay more than the issue price. The IPO is entirely a fresh issue of 18.72 lakh shares.
Shree Karni has a minimum lot size of 600 shares. The minimum amount of investment required by retail investors is ₹1,36,200. The minimum lot size investment for HNI is 2 lots (1,200 shares) amounting to ₹2,72,400.
The company proposes to utilise the net proceeds from the issue towards 1) Funding the capital expenditure setting up a dyeing unit in Navsari District, Surat, Gujarat; 2) Funding the purchase of new machinery proposed to be installed at the new unit proposed to be set up for manufacturing bags in Palsana, Surat, Gujarat, with an intent to expand the product portfolio; 3) Funding working capital requirements of the company; and 4) General corporate purposes. The promoters of the company are Manoj Kumar Karnani, Radhe Shyam Daga, Rajiv Lakhotia, and Raj Kumar Agarwal. Currently they hold a 96.16 percent stake in the firm but post the issue, their stake will decrease to 70.07 percent.
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