Shree Karni Fabcom is engaged in the manufacturing of technical textiles tailored for diverse industries such as luggage, medical arch support, chairs, shoes, and apparel. Their product applications span a wide spectrum, including luggage, roofing, agriculture nets, vehicle covers, tents, armed forces fabric, sports kits, chairs, medical arch support, umbrellas, and raincoats.
Their production process begins with yarn procurement and encompasses weaving, coating, printing, and finishing, resulting in knitted and woven fabrics crafted to meet their clients' customised specifications. Specialising in woven, knitted, coated fabrics, and 100% polyester, they source yarn, resin, acrylic, and coating chemicals to produce specialised technical textiles.
The company specialises in converting yarn into fabric through knitting of fabrics. They outsource the weaving, coating, sizing and embossing of specialised technical textiles to their subsidiary, IGK Technical Textile LLP. Their manufacturing unit is equipped with automated machines for the manufacturing of specialised technical textiles. They market and sell under the brand ‘SKFL’.
The Indian textile and apparel industry is expected to grow at a 10% CAGR from 2019-20 to reach $190 billion by 2025-26. Technical textiles account for approximately 13% of India’s total textile and apparel market and contribute to India’s GDP at 0.7%. Therefore, an organised player in such a growing market may see growth in future revenues.
Shree Karni Fabcom Ltd IPO Details
Shree Karni Fabcom Ltd IPO Dates
The bidding for the Shree Karni Fabcom IPO will open from March 6, 2024, to March 11, 2024.
Shree Karni Fabcom Ltd IPO Price Band
Shree Karni Fabcom is a book-built IPO with a price range that has been decided at ₹220 to ₹227 per share.
Shree Karni Fabcom Ltd IPO Lot Size
The Shree Karni Fabcom Ltd IPO lot size has been decided at 600 shares.
Shree Karni Fabcom Ltd IPO Objectives
The net proceeds will be utilised towards funding the following:
- Funding the capital expenditure for setting up a dyeing unit in Navsari District, Surat, Gujarat.
- Funding the purchase of new machinery proposed to be installed at their new unit proposed to be set up for manufacturing bags in Palsana, Surat, Gujarat, with an intent to expand their product portfolio.
- Funding the working capital requirements of the company.
- General corporate purposes.
Peer Details
The company has one listed peer - Nobletex Industries Limited.
How to Check the Allotment Status of the Shree Karni Fabcom Ltd IPO?
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Contact Details of Shree Karni Fabcom Ltd
Registered office: Plot 188,189,190, Block No. 314, Rajhans Texpa, Village Baleshvar, Taluka Palsana, Surat - 394 317, Gujarat, India.
Phone: +91 262 235 0900
E-mail: shreekarni@skflindia.com
IPO Financials
| Particulars | Period Ended on November 30, 2023 | Year Ending on March 31, 2023 | Year Ending on March 31, 2022 |
|---|---|---|---|
| Total Revenue | 7,599.48 | 12,704.05 | 8,365.18 |
| Profit (Loss) for the Year | 813.44 | 555.25 | 514.84 |
| EBITDA Margin | 19.02% | 11.97% | 9.91% |
| Return on Capital Employed | 11.34% | 21.83% | 19.20% |
| Net Debt/EBITDA | 6.52 | 2.38 | 3.27 |
Know before investing
Strengths
2The company’s production facility is located in Gujarat. Gujarat's geographic proximity to ports and its status as the largest producer of polyester in India significantly reduces transportation costs for Shree Karni Fabricom, making its manufacturing processes more cost-effective. The state's well-established textile value chain ensures easy access to polyester, knitting, weaving, and manufacturing of grey cloth.
They deal in a range of quality products used in the manufacturing of luggage, roofing, agriculture nets, vehicle covers, housing and tents, armed forces fabric and sports kits, chairs, medical arch support, umbrellas and raincoats, amongst others. This diversity in their product portfolio reduces concentration risk and opens up new avenues for revenue growth.
Risks
2The company has not obtained any of the approvals, clearances and permissions as may be required from the relevant authorities for the proposed new manufacturing units.
The company has yet to place orders for 100% of the plant and machinery. Any delay in placing orders or procurement of such plant and machinery may further delay the schedule of implementation and increase the cost of commissioning the manufacturing units.
