Karnika Industries Makes a Modest NSE SME Debut

Karnika Industries Makes a Modest NSE SME Debut

VoM News Desk | October 12, 2023 | 12:09 PM IST | Breaking News | Follow on Google News

Karnika Industries Makes a Modest NSE SME Debut

Karnika Industries Makes a Modest NSE SME Debut

Karnika Industries shares had a lukewarm debut on the NSE SME platform today. The listing price for Karnika Industries on NSE SME was ₹81 per share, representing a 6.6% increase over the issue price of ₹76

Karnika Industries initiated its IPO journey when it opened for subscription on Friday, September 29, and concluded on Thursday, October 5. The company had established a price band of ₹76 per share for the IPO. Investors were required to bid for a minimum of 1600 shares and in multiples of the same.

The promoters of Karnika Industries are Niranjan Mundhra, Shiv Shankar Mundhra, and Mahesh Kumar Mundhr, who have played a key role in the company’s growth and development.

IPO Details and Utilization of Funds

Karnika Industries’ IPO, with a total worth of ₹25.07 crore, was entirely a fresh issue of 3,299,200 equity shares, without any offer for sale (OFS) component. The net proceeds from the IPO will be allocated for various purposes, including covering the issue expenses, fulfilling general corporate requirements, and meeting working capital needs.

Beeline Capital Advisors Pvt Ltd took on the role of the book running lead manager for the Karnika Industries IPO, while Skyline Financial Services Private Ltd served as the registrar. Spread X Securities acted as the market maker for Karnika Industries IPO.

Wide Range of Children’s Clothing

Karnika Industries specializes in offering a diverse range of children’s clothing, including sleepwear, pyjamas, rompers, capris, shirts, winter wear, and newborn clothing. The company boasts well-equipped production facilities, where it designs, creates samples, conducts quality control, and handles garment ironing and packaging. These facilities are equipped with cutting-edge equipment and machinery, ensuring efficient production processes.

Grey Market Premium and Expected Listing Price

The grey market premium (GMP) for Karnika Industries IPO currently stands at +3 per share, indicating that shares were trading at a premium of ₹3 in the grey market on Thursday, according to investorgain.com. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price for Karnika Industries shares was projected at ₹79 per share. This represents a 3.95% increase over the IPO price of ₹76.

The ‘grey market premium’ reflects investors’ readiness to pay a premium over the issue price, demonstrating a level of confidence and interest in the company.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.