Shree Karni Fabcom (NSE SME)

Mar 6, 2024 - Mar 11, 2024

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Shree Karni Fabcom IPO Anchor

Name of Anchor	No. of Shares	% Portion	Amount (cr)
Persistent Growth Fund - Varsu india Growth story scheme- I	230400	43.24%	5.23
Vikasa India EIF I Fund - Inclube global oppertunities	108000	20.27%	2.45
Vikasa India EIF I fund - zodiac global opportunity fund	98400	18.47%	2.23
Astorne Capital - Arven	96000	18.02%	2.18
	532800	100.00%	12.09

Shree Karni Fabcom IPO Reservation

Investor Category	Shares Offered	No. of Shares
Retail	35%	622800
NII (HNI)	15%	267000
QIB Anchor	50%	355800 532800
Market Maker		93600
Total No. of Shares		1872000

Shree Karni Fancom Limited, founded in March 2018, is a reputable manufacturer specializing in the production of customized knitted and woven fabrics for diverse industries including luggage, medical arch support, chairs, shoes, and apparel. With a focus on specialized technical textiles, the company boasts a wide array of expertise in Woven Fabrics, Knitted Fabrics, Coated Fabrics, and 100% polyester materials. Their commitment to quality is underscored by their sourcing of premium yarn, resin, acrylic, and coating chemicals to ensure the production of high-grade textiles.

The manufacturing unit is equipped with state-of-the-art, highly automated machinery, enabling the production of specialized technical textiles at impressive capacities. This includes weaving at a rate of 70,000 meters per day, knitting at 90,000 kilos per month, coating at 50,000 meters per day, PVC production at 15,000 meters per day, EVA lamination at 8,000 meters per day, and heat embossing at 40,000 meters per day.

Shree Karni Fancom Limited has garnered recognition for its commitment to quality management practices, evidenced by its ISO 9001:2015 certification awarded by INTERTEK. This certification serves as a testament to the company's adherence to stringent quality standards and its dedication to maintaining efficient management systems.

With a widespread clientele spanning across 13 states, the company caters to various contract manufacturers of branded luggage and shoe manufacturers, as well as traders and other stakeholders. As of November 30, 2023, Shree Karni Fancom Limited operates with a workforce of 39 employees across multiple departments, ensuring operational excellence and continued growth within the specialized technical textiles industry.

Key Performance Indicator

Company Financials

Period	30 Nov 2023	Mar 2023	Mar 2022	Mar 2021
Assets	14,124.38	9,864.25	5,911.11	2,743.05
Revenue	7,599.48	12,704.05	8,365.18	3,289.86
Profit	813.44	555.25	514.84	153.48
Net Worth	1,912.17	2,602.24	1,321.61	671.23
Reserves	1,392.17	2,502.24	1,221.61	571.23
Borrowing	9,504.27	3,658.72	2,718.09	1,451.30
Amount in ₹ Lakhs

Strength Factors

Established Track Record: Shree Karni Fabcom Limited has a proven history of delivering high-quality specialized technical textiles consistently over time. Their track record instills confidence in stakeholders regarding their reliability and capability to meet customer requirements.

Existing Client and Supplier Relationships: With their longevity in the market, Shree Karni Fabcom Limited has cultivated strong relationships with both clients and suppliers. This network enhances their ability to secure contracts, negotiate favorable terms, and ensure a steady flow of materials, contributing to sustained business growth.

Quality Assurance and Quality Control: Karni Fabcom Limited prioritizes quality assurance and quality control processes throughout their production cycle. Rigorous quality standards ensure that their products meet or exceed industry benchmarks, enhancing customer satisfaction and loyalty.

Strategically Located Manufacturing Facilities: Karni Fabcom Limited's manufacturing facilities are strategically located to leverage locational advantages such as proximity to raw material sources, transportation hubs, and target markets. Modern infrastructure and integrated facilities enable efficient production processes and timely delivery of products.

Well-Experienced Management Team: Karni Fabcom Limited is led by a seasoned management team with extensive industry experience and proven project management and implementation skills. Their leadership ensures effective decision-making, strategic planning, and agile response to market dynamics, positioning the company for long-term success and sustainability.

Risk Factors

Uncertainty Regarding Operational Expansion: The Company faces uncertainty regarding the timely and efficient commissioning of proposed manufacturing units for dyeing fabrics and manufacturing bags. Failure to commence operations as planned, or encountering cost overruns, could negatively impact the company's business operations, financial performance, and overall financial health.

Regulatory Approval Challenges: Karni Fabcom Limited has not yet obtained the necessary approvals, clearances, and permissions from relevant authorities for the proposed manufacturing units. Inability to secure these approvals may disrupt the company's expansion plans, potentially leading to adverse effects on its business operations, financial condition, and cash flows.

Risk of Objectives Not Being Achieved: There is no guarantee that the objectives of the proposed issue will be achieved within the anticipated time frame or at all. Additionally, the deployment of net proceeds from the issue may not result in the expected increase in the value of investors' investments. Lack of achievement of these objectives could negatively impact investor confidence and the company's financial performance.

Lack of Financial Appraisal for Net Proceeds Deployment: The plan for deploying the net proceeds from the issue has not been appraised by any bank or financial institution. This lack of financial appraisal introduces uncertainty regarding the effectiveness and efficiency of the planned deployment, potentially affecting the company's ability to generate returns and manage financial resources effectively.

Operational Dependency and Shutdown Risks: Shree Karni Fabcom Limited's continued operations are critical to its business success. Any potential shutdown of its manufacturing unit, whether due to operational issues, regulatory non-compliance, or other factors, could adversely affect the company's business operations, financial results, and overall financial condition.

Horizon Management Private Limited

Mas Services Limited

Phone: (011) 2610 4142
Email: ipo@masserv.com
Website: https://www.masserv.com/opt.asp