Karnika Industries Ltd: Stock Doubles in One Month Since Listing

Have you ever tried your luck by subscribing to any IPO? And getting the allotment is like the cherry on the cake. Sometimes, buying stock on the listing day itself has also proven to be a better decision, provided the stock is not listed at a stellar premium. Another crucial condition is that the company should have a sound financial track record. 

But why are we discussing these things now? Well, today we are going to explore a company that not only completed one month of its IPO journey but also doubled during the same period.

Before disclosing the name of the company, let’s check the subscription details. On October 5, 2023, the final day of the IPO window, the IPO witnessed a normal response, especially when compared to other recently listed IPOs, with a subscription rate of 3.07 times. The public issue received mixed interest, with the retail category being subscribed 2.91 times, the QIB category not subscribed, and the NII category reaching a subscription rate of 3.22 times. 

The IPO was from the SME category, and the price range was set at Rs 76, with a face value of Rs 10 per share and a lot size of 1,600 shares. The total size of the company’s IPO was Rs 25.07 crore, and the final share issue price was fixed at Rs 76 each.  

On the listing day, the stock debuted at Rs 81 per share, a mere 7% premium compared to the final issue price of Rs 76 per share, and finally concluded that day at Rs 82.60 per share on the NSE. 

Furthermore, as of yesterday, November 12, the IPO completed one month of listing, and investors who had remained invested in the company doubled their money within a month as the stock price doubled from Rs 76 to Rs 152 per share. As of writing this article, it is trading at Rs 154.65 per share on the NSE. Let’s move on to the Stock price chart on the daily time frame, company name, and its business overview. 

Stock Price Chart (Daily time frame): 

Business Overview 

Karnika Industries Limited, based in India, operates as a manufacturer, trader, and exporter specializing in garments. The company engages in the production of various types of children’s wear, encompassing shorts, joggers, capri pants, tees, rompers, sleeping suits, pajamas, winter wear, infant wear, and more. The products are marketed under the brand name KARNIKA, with distinct subcategories such as KARNIKA Care, KARNIKA Cool, KARNIKA Cube, KARNIKA Life, KARNIKA Key, and KARNIKA Club. The manufacturing facilities are situated in Howrah, West Bengal.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.