Karnika Industries IPO: Karnika Industries, a well-known garments sector company is set to open its Initial Public Offering on 29 September 2023. The IPO will close on 4 October 2023 offering a 5-day window for investors to participate.
The Karnika Industries IPO is currently forthcoming and has generated considerable interest among investors. You can pre-apply for the Karnika Industries IPO on Upstox. which means the pre-apply open date, usually begins a day before the IPO opens for the subscription.
Karnika Industries IPO
Karnika Industries has listed its symbol as “_” for the IPO. The offering comes with a face value of ₹10 per share and is priced at ₹76 per share. The company has set the lot size at 1600 shares, allowing investors to make purchases in multiples of 1600 shares. With an issue size of 3,299,200 shares, aggregating up to ₹25.07 crore, Karnika Industries aims to gather considerable interest from the market.
The type of the issue is a fixed-price issue IPO, which will be listed on the National Stock Exchange’s Small and Medium Enterprises (NSE SME) platform. This makes it an important event in the SME sector, which often faces funding challenges.
Investors can look forward to the basis of allotment which will be declared on Monday, 9 October 2023. The initiation of refunds for unsuccessful applications will commence on Tuesday, 10 October 2023.
Investors who are successfully allotted shares will have them credited to their Demat accounts by Wednesday, 11 October 2023. The shares are expected to be listed on Thursday, 12 October 2023, giving investors an opportunity to trade in the newly listed stock.
Karnika Industries IPO Details
| Open Date | 29 September 2023 |
| Close Date | 4 October 2023 |
| Lot Size | 1600 |
| IPO Size | ₹25.07 Cr |
| IPO Price | ₹76 |
| Min Investment (Retail) | ₹1,21,600 |
| Min Investment (HNI) | ₹2,43,200 |
| Listing Exchange | NSE SME |
| Basis of Allotment | 9 October 2023 |
| Refunds | 10 October 2023 |
| Credit to Demat Account | 11 October 2023 |
| Listing Date | 12 October 2023 |
| RHP | Download |
| DRHP | Download |
Apply for the Karnika Industries IPO
You can pre-apply for the Karnika Industries IPO on Upstox. Follow these steps to pre-apply for the IPO:
- Click on the “Open an Account“
- Fill in the required details
- Complete the verifying your identity
- Login to Your Account
- in the IPO section, click the ‘Karnika Industries IPO’ tab
- fill in the required information, like ‘bid price’ and ‘lot size’
- Confirm and click on ‘Pre-Apply’
Karnika Industries IPO GMP Status
Karnika Industries is open from 29 September to 4 October 2023 and people’s eyes have been on the grey market premium (GMP) to gauge investor sentiment. GMP is the rate at which the IPO shares are traded in the grey market before they get listed on the stock exchange. It’s an unofficial way of measuring the market’s sentiment about the IPO.
| GMP Date | IPO Price | GMP | Sub2 Sauda Rate | Estimated Listing Price |
|---|---|---|---|---|
| 25-09-2023 | 76.00 | ₹0 | — | ₹ (0%) |
| 24-09-2023 | 76.00 | ₹0 | — | ₹ (0%) |
About Karnika Industries
Karnika is a renowned name in the Indian garments industry with a legacy spanning over two decades. As a leading garments manufacturer and exporter in India, we take pride in our diverse range of products, exceptional craftsmanship, and customer-centric approach. Be it fancy sets for boys and girls, economy range, or separates you name it and we have it all.
Financially, the company has shown robust growth. For the period from 13 April 2022 to 31 March 2023, the company reported a Total Income of Rs. 12605.62 Lakhs and a Restated Profit After Tax of Rs. 826.74 Lakhs. Interestingly, for the shorter period from 1 April 2022 to 12 April 2022, the Total Income and Restated Profit After Tax were Rs. 638.31 Lakhs and Rs. 25.67 Lakhs, respectively.
This demonstrates a healthy financial picture for the firm, considering that for the year ended on 31 March 2022, the Total Income was Rs. 9892.52 Lakhs with a Restated Profit After Tax of Rs. 454.01 Lakhs. These figures have shown remarkable growth from the previous year ended on 31 March 2021, where the Total Income and Restated Profit After Tax were Rs. 4779.31 Lakhs and Rs. 81.61 Lakhs, respectively.
Strengths:
- Quality Assurance and Standards
- Experienced Management Team
- Satisfied Customers with Quality
- Strong Business Model
- Established Operations and Proven Track Record
Weaknesses:
- Heavy Dependence on Suppliers
- High Working Capital Requirement
- Insufficient Market Reach
Opportunities:
- Expanding into New Geographical Areas
- Opportunities in the Indian Market
- Government Thrust for Development Leading to Increased Demand
Threats:
- Increased Competition from Large Players
- Changes in Government Policies
- Rising Labor Wages
- Lack of Entry Barriers in the Industry, Allowing New Competitors
- Fluctuation in Raw Material Prices
Karnika Industries IPO allotment status
| Application | Lots | Shares |
|---|---|---|
| Retail (Min) | 1 | 1600 |
| Retail (Max) | 1 | 1600 |
| HNI (Min) | 2 | 3,200 |
When the allotment process is completed, you can check the status of your application on the Upstox. how to check the Karnika Industries IPO allotment status:
- Login to your Upstox Account
- find the ‘Invest in IPO’ section.
- Click on the ‘View all option
- Click on My applications
- under the History section
- your Karnika Industries IPO allotment status will be mentioned.
Karnika Industries Company Financials
The assets of the company have more than tripled in this period, escalating from ₹3,055.87 lakhs as of 31 March 2021 to a staggering ₹10,071.04 lakhs by 31 March 2023. This upward trend indicates a robust financial health and is a clear indication of the company’s long-term vision and execution capabilities.
Revenue, a critical indicator of a company’s operational success, also exhibited a remarkable uptick. While the revenue for the fiscal year ending 31 March 2021 stood at ₹4,779.31 lakhs, it saw a more than twofold increase, reaching ₹12,605.62 lakhs by the end of 31 March 2023. This demonstrates the company’s ability to not just sustain but significantly improve its market performance.
In terms of profitability, Karnika Industries’ Profit After Tax (PAT) leaped from ₹81.61 lakhs as of 31 March 2021 to ₹826.74 lakhs by 31 March 2023. This showcases the company’s effective strategies in operational efficiencies and cost management.
Net Worth is another financial metric where Karnika has made notable strides. From ₹378.14 lakhs in 2021, the company’s net worth swelled to ₹1,860.88 lakhs in 2022, although there was a slight dip to ₹1,806.83 lakhs in 2023. This fluctuation can be attributed to multiple factors including reserves and surplus, which were specifically noted to be ₹896.80 lakhs.
Furthermore, the total borrowing of the company increased substantially from ₹1,570.94 lakhs in 2021 to ₹5,245.53 lakhs in 2023. While increased borrowing often requires careful monitoring, in the case of Karnika Industries, it appears to be in line with their aggressive growth strategies.
Key Performance Indicators (KPIs) such as P/E ratio at 7.57x and Earnings Per Share (EPS) at ₹9.66 also reflect the strong potential of the company. The Return on Net Worth (RoNW) stands at an impressive 45.76%, reinforcing the efficiency of the company in generating shareholder value.
Karnika Industries IPO price?
– The Karnika Industries Fixed Price Issue IPO ₹76 per equity share.
Karnika Industries IPO date?
– The public issue opened on 29 September 2023 and will close on 4 October 2023.
Karnika Industries IPO lot size?
– The lot size for the Karnika Industries IPO is 1600 equity shares.
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it’s important to note that GMP is not an official measure and often varies. It provides an early indicator of potential demand but does not guarantee the actual listing price. The GMP prices shown here are only news related to the grey market. We do not trade/deal in the grey market or subject to rates (sub2), nor do we recommend trading in the grey market
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Sharedhan. We advise investors to check with certified experts before making any investment decisions.
