| Basis of Allotment |
(This is only an advertisement for Information purposes and not a Prospectus announcement. This does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Not for publication or distribution, directly or indirectly outside India)
|
KARNIKA INDUSTRIES LIMITED |
| CIN: U17299WB2022PLC253035 |
Our Company was originally formed as a Partnership Firm under the Partnership Act. 1932 (‘Partnership Act") in the name and style ot "Kami International' pursuant to Deed of Partnership dated July 21.2017 Kami International was thereafter converted from Partnership Firm to a Public Limited Company under Part I chapter XXI of the Companies Act, 2013 with the name and style of" Kamika Industries Limited* and received a Certificate of Incorporation from the Registrar of Companies. Kolkata dated April 13,2022. For further details, please refer to chapter titled ‘ History and Corporate Structure ' beginning on page 119 of the Prospectus.
| Registered Office: 6 & 6/1. Gurgola Ghat Road. PO. Salloa. Howrah. Howrah. West Bengal - 711106, India. Tel No.: 033-26553101 Email: info@kamikamdustnes.com. |
| Website: www.karnikaindustries.com Contact Person: Ms. Muskan Mundhra. Company Secretary and Compliance Officer. |
| OUR PROMOTERS: MR. NIRANJAN MUNDHRA, MR. SHIV SHANKAR MUNDHRA AND MR. MAHESH KUMAR MUNDHRA |
| BASIS OF ALLOTMENT |
INITIAL PUBLIC ISSUE OF 32,99,200 EQUITY SHARES OF RS. 10/- EACH ("EQUITY SHARES") OF KARNIKA INDUSTRIES LIMITED ("KARNIKA" OR THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS. 76/- PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS. 66/- PER EQUITY SHARE (THE "ISSUE PRICE")AGGREGATING TO RS. 2507.39 LAKHS ("THE ISSUE"). OF WHICH 1,66,400 EQUITY SHARES OF RS. 10/- EACH FOR CASH AT A PRICE OF RS. 76/- PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS. 66/- PER EQUITY SHARE AGGREGATING TO RS. 126.46 LAKH WILL BE RESERVED FOR SUBSCRIPTION BY MARKET MAKER TO THE ISSUEET MAKER TO THE ISSUE (THE "MARKET MAKER RESERVATION PORTION"). THE ISSUE LESS MARKET MAKER RESERVATION PORTION I.E. ISSUE OF 31,32,800 EQUITY SHARES OF RS. 10/- EACH INCLUDING A SHARE PREMIUM OF RS 66/- PER EQUITY SHARE AGGREGATING TO RS. 2380.93 LAKH IS HEREINAFTER REFERRED TO AS THE "NET ISSUE". THE ISSUE AND' ISSUE". THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 26.61 % AND 25.27%. RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF THE COMPANY.
THIS ISSUE IS BEING MADE IN TERMS OF CHAPTER IX OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS. 2018 (THE "SEBIICDR REGULATIONS'), AS AMENDED, IN TERMS OF RULE 19(2)(B)(I) OF THE SECURITIES CONTRACTS (REGULATION) RULES AS AMENDED (THE 'SCRR‘), THIS ISSUE IS BEING MADE FOR AT LEAST 25% OF THE POST-ISSUE PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY. THIS ISSUE IS A FIXED PRICE ISSUE AND ALLOCATION IN THE NET ISSUE TO THE PUBLIC WILL BE MADE IN TERMS OF REGULATION 253 OF THE SEBI(ICDR) REGULATIONS. 2018, AS AMENDED.
THE FACE VALUE OF THE EQUITY SHARE IS RS. 10/- AND THE ISSUE PRICE IS 76.00 THE ISSUE PRICE IS 7.60 TIMES OF THE FACE VALUE.
| ISSUE OPENED ON: | ISSUE CLOSED ON: |
| FRIDAY, SEPTEMBER 29, 2023 | WEDNESDAY, OCTOBER 05, 2023 |
| PROPOSED LISTING : OCTOBER 12, 2023 | |
The Equity Shares offered through the Prospectus are proposed to be listed on the SME Platform of National Stock Exchange of India Limited ("NSE" i.e. NSE EMERGE") in terms of the Chapter IX of the SEBI ICDR Regulation, 2018 as amended from time to time. Our Company has received an in-principle approval letter dated September 15,2023 from NSE for using its name in the offer document for listing of our shares on the SME Platform of NSE f NSE EMERGE"). For the purpose of this Issue, the Designated Stock Exchange will be the National Stock Exchange of India Limited The trading is proposed to be commenced on or about October 12, 2023*
•Subject to receipt of listing and trading approvals from the NSE.
All Applicants were allowed to participate In the issue through APPLICATION SUPPORTED BY BLOCKEO AMOUNT("ASBA") process by providing the details of the respective bank accounts in which the corresponding application amounts were blocked by Self Certified Syndicate Banks (the * SCSBs').
| SUBSCRIPTION DETAILS |
The issue has received 3174 applications for 97.98.400 Equity Shares resulting in 2.97 times subscription (including reserved portion of market maker). The details ol the applications received in the issue (before technical rejections) are as follows:
Detail of the Applications Received (Before Technical Rejection but after application not banked):
| CATEGORY | NUMBER OF APPLICATIONS | % | NUMBER OF EQUITY SHARES | % | SUBSCRIPTION (TIMES) |
| Market Makers | 1 | 0.03 | 1,66,400 | 1.70 | 1.00 |
| Retail Individual Investors | 2865 | 90.27 | 45,84,000 | 46.78 | 2.93 |
| Other than Retail Individual Investors | 308 | 9.70 | 50,48,000 | 51.52 | 3.22 |
| TOTAL | 3174 | 100.00 | 97,98,400 | 100.00 | 2.97 |
The details of applications rejected by the Registrar on technical grounds (including withdrawal) are detailed below:
| Category | No. of Applications | No. of Equity Shares |
| Market Makers | Nil | Nill |
| Retail Individual Investors | 60 | 96,000 |
| Other than Retail individual Investors | 4 | 24,000 |
| Total | 64 | 1,20,000 |
After eliminating technically rejected applications, the following tables give us category wise net valid applications:
| Category | No. of Applications | % | Reserved Portion (as per Prospectus) | No. of Valid Shares applied | % of Total Applied | Subscription (Times) |
| Market Maker | 1 | 100 | 1,66,400 | 1,66,400 | 100 | 1.00 |
| Total | 1 | 100 | 1,666,400 | 1,66,400 | 100 | 1.00 |
| Category | No. of Applications | % | Reserved Portion (as per Prospectus) | Proportionate Issue Size (After rounding off) | No. of Valid Shares applied | % of Total Applied | Subscription (Times) |
| Retail Individual Investors | 2,805 | 90.22 | 15,66,400 | 15,66,400 | 44,88,000 | 47.18 | 2.87 |
| Other than Retail Individual Investors | 304 | 9.78 | 15,66,400 | 15,66,400 | 50,24,000 | 52.82 | 3.21 |
| Total | 3,109 | 100.00 | 31,32,800 | 31,32,800 | 95,12,000 | 100.00 |
ALLOCATION: The Basis of Allotment was finalized in consultation with the Designated Stock Exchange - NSE on October 09, 2023
A. Allocation to Market Maker (Alter Technical Rejections & Withdrawal): The Basis of Allotment to the Market Maker, at the issue price of 7.76/- per Equity Share, was finalized in consultation with NSE. The category was subscribed by 1.00 times. The total number of shares allotted in this category is 1,66,400 Equity shares.
The category wise details of the Basis of Allotment are as under:
| No. of Shares Applied for (Category wise) | No. of Applications received | %to total | Total No. of Equity Shares applied in this Category | %to total | Proportional Shares Available | Allocation per Applicant (Before Rounding Oil) | Allocation per Applicant (After Rounding Off) | Ratio of Allottees to Appli cation Ratio 1 | Ratio of Allottees to Application Ratio 2 | Number of Successful applicants (after rounding off) | Total No. of Equity Shares allocated'' allotted | No. of Shares Surplus/ Deficit |
| 1,66,400 | 1 | 100.00 | 1,66,400 | 100 00 | 1,66,400 | 1,66,400 | 1,66,400 | 1 | 1 | 1 | 1,66,400 | -- |
| TOTAL | 1 | 100.00 | 1,66,400 | 100.00 | 1,66,400 | 1.66.400 | 1,66,400 | 1 | 1 | 1 | 1,66.400 | -- |
B. Allocation to Retail Individual Investors (Alter Technical Rejections & Withdrawal): The Basis of Allotment to the Retail Individual Investors, at the issue price of 7.76/- per Equity Share, v/as finalized in consultation with NSE. The category was subscribed by 2.87 times i.e. for 44,88,000 Equity Shares. Total number of shares allotted in this category is 15,66 400 Equity Shares to 979 successful applicants
The category wise details of the Basis of Allotment are as under:
| No. Of Shares Applied for (Category wise) | No. of Applications received | %to total | Total No. of Equity Shares applied in this Category | %to total | Proportionate Shares Available | Allocation per Applicant (Before Rounding Ofl) | Allocation per Applicant (Alter Rounding Off) | Ratio of Allottees to Appli cation Ratio 1 | Ratio of Allottees to Application Ratio 2 | Number of Successful applicants (after rounding off) | Total No. of Equity Shares allocated'' allotted | No. of Shares Surplus/ Deficit |
| 1600 | 2805 | 100 | 44,88,000 | 100 | 15,66,400 | 558 | 1600 | 89 | 255 | 979 | 15,66,400 | 0 |
| TOTAL | 2805 | 100 | 44,88,000 | 100 | 15,66,400 |
C. Allocation to Other than Retail Individual Investors (After Technical Rejections & Withdrawal): The Basis of Allotment to Other than Retail Individual Investors, at the issue price of 7.76 /- per Equity Share, was finalized in consultation with NSE The category was subscribed by 3.21 times i.e. for 50,24,000 shares the total number of shares allotted in this category is 15,66,400 Equity Shares to 253 successful applicants.
The category wise details of the Basis of Allotment are as under:
| Sr. No. | No. of Shares applied for (Category wise) | No. of Applications Received | % to total | Total No, of Shares applied in each category | % to total | Proportionate Shares Available | Application per Applicant | Ratio of allottees to applicants | Serial Number of Qualifying applicants | Number of successful applicants (after rounding | %to total | Total No. of Shares allocated, allotted | %to total | Surplus/Deficit (14)-(7) | ||
| Before rounding off | After rounding off | |||||||||||||||
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | (13) | (14) | (15) | (16) | |
| 1. | 3200 | 131 | 43.09 | 4,19,200 | 8.34 | 1,30,700 | 998 | 1,600 | 82 | 131 | 3,4, 5,6, 9, 11,14,16,17, 20, 21,24, 25, 29, 30, 32, 33, 34, 35,36, 38, 40, 42,45, 46, 48,49 50,51, 52, 54,55, 56, 58, 59,61,62, 66, 67, 68, 69, 70, 71,72, 73, 74, 75, 76, 78, 79, 80,81,84, 85, 88, 89, 90, 95,97, 98,100 104, 105, 106, 109,111,113, 114,115,116, 118,119,120, 123, 124, 125, 126,127,128, 129,130,131 | 82 | 32.41 | 1,31,200 | 8.38 | 500 |
| 2. | 4800 | 34 | 11.18 | 1,63,200 | 3.25 | 50,883 | 1,497 | 1,600 | 16 | 17 | 1,2, 3,4, 5,7, 8,9, 10, 11,12,13, 14,15,16,17 | 32 | 12.65 | 51,200 | 3.27 | 317 |
| 3. | 6400 | 30 | 9.87 | 1,92,000 | 3.82 | 59,862 | 1,995 | 1,600 | 1 | 1 | 30 | 11.86 | 48,000 | 3.06 | -11,862 | |
| 4. | 6400 | 0 | 0 | 0 | 0 | 0 | 0 | 1,600 | 7 | 30 | 5, 7,9,11, 15,17, 24 | 0 | 0.00 | 11,200 | 0.72 | 11,200 |
| 5. | 8000 | 21 | 6.91 | 1,68,000 | 3.34 | 52,380 | 2,494 | 1,600 | 1 | 1 | 21 | 8.30 | 33,600 | 2.15 | -18,780 | |
| 6. | 8000 | 0 | 0 | 0 | 0 | 0 | 0 | 1,600 | 4 | 7 | 1,2, 4, 6 | 0 | 0.00 | 19,200 | 1.23 | 19,200 |
| 7. | 9600 | 12 | 3.95 | 1,15,200 | 2.29 | 35,917 | 2,993 | 1,600 | 1 | 1 | 12 | 4.74 | 19,200 | 1.23 | -16,717 | |
| 8. | 9600 | 0 | 0 | 0 | 0 | 0 | 0 | 1,600 | 5 | 6 | 1,2,4 5,6 | 0 | 0.00 | 16,000 | 1.02 | 16,000 |
| 9. | 11200 | 4 | 1.32 | 44,800 | 0.89 | 13,968 | 3,492 | 3,200 | 1 | 1 | 4 | 1.58 | 12,800 | 0.82 | -1,168 | |
| 10. | 11200 | 0 | 0 | 0 | 0 | 0 | 0 | 1,600 | 1 | 4 | 3 | 0 | 0.00 | 1,600 | 0.10 | 1,600 |
| 11. | 12800 | 6 | 1.97 | 76,800 | 1.53 | 23,945 | 3,991 | 3,200 | 1 | 1 | 6 | 2.37 | 19,200 | 1.23 | -4,745 | |
| 12. | 12800 | 0 | 0 | 0 | 0 | 0 | 0 | 1,600 | 1 | 2 | 1 | 0 | 0.00 | 4,800 | 0.31 | 4,800 |
| 13. | 14400 | 10 | 3.29 | 1,44,000 | 2.87 | 44,897 | 4,490 | 3,200 | 1 | 1 | 10 | 3.95 | 32,000 | 2.04 | -12,897 | |
| 14. | 14400 | 0 | 0 | 0 | 0 | 0 | 0 | 1,600 | 4 | 5 | 1,2, 4, 5 | 0 | 0.00 | 12,800 | 0.82 | 12,800 |
| 15. | 16000 | 26 | 8.55 | 4,16,000 | 8.28 | 1,29,702 | 4,989 | 4,800 | 1 | 1 | 26 | 10.28 | 1,24,800 | 7.97 | -4,902 | |
| 16. | 16000 | 0 | 0 | 0 | 0 | 0 | 0 | 1,600 | 3 | 26 | 5, 21,25 | 0 | 0.00 | 4,800 | 0.31 | 4,800 |
| 17. | 17600 | 1 | 0.33 | 17,600 | 0.35 | 5,487 | 5,487 | 4,800 | 1 | 1 | 1 | 0.40 | 4,800 | 0.31 | -687 | |
| 18. | 19200 | 2 | 0.66 | 38,400 | 0.76 | 11,972 | 5,986 | 6,400 | 1 | 1 | 2 | 0.79 | 12,800 | 0.82 | 828 | |
| 19. | 27200 | 2 | 0.66 | 54,400 | 1.08 | 16,961 | 8,481 | 8,000 | 1 | 1 | 2 | 0.79 | 16,000 | 1.02 | -961 | |
| 20. | 27200 | 0 | 0 | 0 | 0 | 0 | 0 | 1,600 | 1 | 2 | 2 | 0 | 0.00 | 1,600 | 0.10 | 1,600 |
| 21. | 28800 | 2 | 0.66 | 57,600 | 1.15 | 17,959 | 8,979 | 8,000 | 1 | 1 | 2 | 0.79 | 16,000 | 1.02 | -1,959 | |
| 22. | 28800 | 0 | 0 | 0 | 0 | 0 | 0 | 1,600 | 1 | 2 | I | 0 | 0.00 | 1,600 | 0.10 | 1600 |
| 23. | 30400 | 1 | 0.33 | 30,400 | 0.61 | 9,478 | 9,478 | 9,600 | 1 | 1 | 1 | 0.40 | 9,600 | 0.61 | 122 | |
| 24. | 40000 | 1 | 0.33 | 40,000 | 0.80 | 12,471 | 12,471 | 12,800 | 1 | 1 | 1 | 0.40 | 12,800 | 0.82 | 329 | |
| 25. | 51200 | 1 | 0.33 | 51,200 | 1.02 | 15,963 | 15,963 | 16,000 | 1 | 1 | 1 | 0.40 | 16,000 | 1.02 | 37 | |
| 26. | 67200 | 2 | 0.66 | 1,34,400 | 2.68 | 41,904 | 20,952 | 20,800 | 1 | 1 | 2 | 0.79 | 41,600 | 2.66 | -304 | |
| 27. | 72000 | 1 | 0.33 | 72,000 | 1.43 | 22,448 | 22,448 | 22,400 | 1 | 1 | 1 | 0.40 | 22,400 | 1.43 | -48 | |
| 28. | 80000 | 1 | 0.33 | 80,000 | 1.59 | 24,943 | 24,943 | 25,600 | 1 | 1 | 1 | 0.40 | 25,600 | 1.63 | 657 | |
| 29. | 92800 | 1 | 0.33 | 92,800 | 1.85 | 28,934 | 28,934 | 28,800 | 1 | 1 | 1 | 0.40 | 28,800 | 1.84 | -134 | |
| 30. | 113600 | 3 | 0.99 | 3,40,800 | 6.78 | 1,06,256 | 35,419 | 35,200 | 1 | 1 | 3 | 1.19 | 1,05,600 | 6.74 | -656 | |
| 31. | 120000 | 1 | 0.33 | 1,20,000 | 2.39 | 37,414 | 37,414 | 36,800 | 1 | 1 | 1 | 0.40 | 36,800 | 2.35 | -614 | |
| 32. | 124800 | 1 | 0.33 | 1,24,800 | 2.48 | 38,911 | 38,911 | 38,400 | 1 | 1 | 1 | 0.40 | 38,400 | 2.45 | -511 | |
| 33. | 129600 | 1 | 0.33 | 1,29,600 | 2.58 | 40,407 | 40,407 | 40,000 | 1 | 1 | 1 | 040 | 40,000 | 2.55 | -407 | |
| 34. | 131200 | 1 | 0.33 | 1,31,200 | 2.61 | 40,906 | 40,906 | 41,600 | 1 | 1 | 1 | 0.40 | 41,600 | 2.66 | 694 | |
| 35. | 137600 | 1 | 0.33 | 1,37,600 | 2.74 | 42,901 | 42,901 | 43,200 | 1 | 1 | 1 | 0.40 | 43,200 | 2.76 | 299 | |
| 36. | 144000 | 3 | 0.99 | 4,32,000 | 8.60 | 1,34,690 | 44,897 | 44,800 | 1 | 1 | 3 | 1.19 | 1,34,400 | 8.58 | -290 | |
| 37. | 152000 | 1 | 0.33 | 1,52,000 | 3.03 | 47,391 | 47,391 | 48,000 | 1 | 1 | 1 | 0.40 | 48,000 | 3.06 | 609 | |
| 38. | 192000 | 1 | 0.33 | 1,92,000 | 3.82 | 59,862 | 59,862 | 59,200 | 1 | 1 | 1 | 0.40 | 59,200 | 3.78 | -662 | |
| 39. | 196800 | 1 | 0.33 | 1,96,800 | 3.92 | 61,359 | 61,359 | 60,800 | 1 | 1 | 1 | 0.40 | 60,800 | 3.88 | -559 | |
| 40. | 659200 | 1 | 0.33 | 6,59,200 | 13.12 | 2,05,528 | 2,05,528 | 2,06,400 | 1 | 1 | 1 | 0.40 | 2,06,400 | 13.18 | 872 | |
| Total | 304 | 100.00 | 50,24,000 | 100.00 | 15,66,400 | 253 | 100.00 | 15,66,400 | 100.00 | - | ||||||
The Board of Directors of the Company at its meeting held on October 09, 2023 has approved the Basis of Allocation of Equity Shares as approved by the Designated Stock Exchange viz. NSE and has authorized the corporate action for issue of the Equity Shares to various successful applicants
The CAN-cum-allotment advices and/or notices will be forwarded to the email id's and address of the Applicants as registered with the depositories / as filled in the application form on or before October 10, 2023. Further, the instructions to Sell Certified Syndicate Banks for unblocking the amount will process on or prior to October 10, 2023. In case the same is not received within 10 days, investors may contact at the address given below. The Equity Shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The Company is taking steps to get the Equity Shares admitted for trading on the NSE EMERGE within six working days from the date of the closure of the issue
Note All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus dated September 22, 2023 (‘Prospectus")
| INVESTORS PLEASE NOTE |
The details of the allotment made would also be hosted on the website of the Registrar to the issue, SKYLINE FINANCIAL SERVICES PRIVATE LIMITED at www.sky1inerta.com. All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting lull name of the First/Sole applicants, serial number of the Application Form, number of shares applied for and Bank 8ranch where the application had been lodged and payment details at the address of the Registrar given below:
 |
SKYLINE FINANCIAL SERVICES PRIVATE LIMITED |
| D-153A, 1st Floor, Okhla Industrial Area Phase-1, New Delhi -110020. India | |
| Tel. No.: 011-40450193-197 | |
| Email: ipo@skylinrta.com | |
| Website: www.skylinerta.com | |
| Investor Grievance Email: grievances@skylinerta.com | |
| Contact Person: Mr. Anuj Kumar | |
| SEBI Registration No.: INR000003241 |
| CORRIGENDUM TO PROSPECTUS DATED SEPTEMBER 22, 2023 |
Under Section XV - Other Information - Material Contracts and Document for Inspection, Point 7 and 8 of Material Documents will be read as
7. Copy of the Statement of Tax Benefits dated June 26, 2023 from the Peer Review Auditor.
8. Certificate from the Peer Review Auditor of the Company dated June 26, 2023 with respect to the KPIs disclosed in this Prospectus.
| For Karnika Industries Limited | |
| On behalt of Board of Directors | |
| Sd/- | |
| Mr. Niranjan Mundhra | |
| Place: Howrah | Chairman cum Managing Director |
| Date: October 10, 2023 | DIN: 05254448 |
THE LEVEL OF SUBSCRIPTION SHOULO NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF KARNIKA INDUSTRIES LIMITED.
Karmka Industries Limited is proposing, subject to market conditions, public issue ot its equity shares and has tiled the Prospectus with the Registrar ot Companies, Koikata. The Prospectus is available on the website ot SEBI at www.sebi.gov.in, the website of the Lead Manager at ww.beelinemb.com. website of the NSE at www.nseindia.com and website of Issuer Company at www.karnikaindustries.com. Investors should note that investment m Equity Shares involves a high degree of risk. For details, investors shall refer to and rely on the Prospectus including the section titled ‘Risk Factors' beginning on page 22 of the Prospectus, which has been filed with ROC. The Equity Shares have not been and will not be registered under the US Securities Act (the "Securities Act") or any state Securities law In United States and may not be Issued or sold within the United States or to, or for the account or benefit of. 'U S. persons' (as defined in the Regulation S under the Securities Act). except pursuant to an exemption from, or in a transaction not subject to the registration requirements of the Securities Act of 1933.
|
Close
|