Kabra Jewels is a prominent name in the retail jewellery sector, specializing in gold, diamond, and silver ornaments, alongside other offerings like gold and silver coins, utensils, and artifacts. The company markets its exclusive designs under the brand KK Jewels, leveraging its core competency in jewellery design.

Kabra Jewels IPO Overview

The Kabra Jewels IPO is a Book Built Issue amounting to ₹ 40 Crore, consisting of a Fresh Issue of 31.25 Lakh shares. The subscription period for the IPO opens on January 15, 2025 and closes on January 17, 2025. The allotment date is expected to be January 20, 2025, with a listing date set for January 22, 2025.

The price band for the IPO is between ₹121 to ₹128 per share, offering investors a chance to participate in the NSE SME platform. The lot size is set at 1,000 shares, requiring a minimum investment of ₹1,28,000 for retail investors. High-Net-Worth Individuals (HNIs) need to apply for at least 2 lots (2,000 shares), amounting to ₹2,56,000.

Financial Overview and Key Metrics

Kabra Jewels has consistently shown growth in its revenue and profitability. The Revenues from Operations for the fiscal years ending 2024, 2023, and 2022 are reported at ₹12,584.47 Lakh, ₹16,424.32 Lakh, and ₹12,334.02 Lakh, respectively, showing a strong performance despite fluctuations.

The EBITDA figures for the same period are ₹2,021.11 Lakh, ₹2,206.61 Lakh, and ₹1,246.16 Lakh, with a steady increase in profitability. The Profit after Tax (PAT) for November 2024 is ₹880.89 Lakh, with past years showing consistent earnings growth, further strengthening its market position.

The company’s Pre-Issue and Post-Issue Earnings Per Share (EPS) are reported at ₹12.77 and ₹8.96, respectively, indicating a decrease in EPS post-issue but still offering growth potential. The P/E ratio is 10.02x pre-issue and 14.28x post-issue, compared to the industry P/E ratio of 37x, suggesting an attractive valuation relative to peers.

Other key metrics such as Return on Capital Employed (ROCE), Return on Equity (ROE), and Return on Net Worth (RoNW) stand at 18.23%, 30.25%, and 30.25%, respectively, showing the company’s efficient use of capital and strong profitability.

Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium (GMP) for the Kabra Jewels IPO is currently at ₹50, indicating a 39.06% potential gain upon listing. This shows the market's positive outlook on the IPO despite the relatively modest subscription rate of 0.26 times on the first day.

Although GMP is driven by unorganized demand and does not guarantee post-listing performance, it suggests a strong likelihood of listing gains. The GMP trend has increased from ₹20 on January 9, 2025, to ₹50 on January 14, 2025, signaling improving investor interest.

Kabra Jewels IPO Allotment Process

To check your Kabra Jewels IPO allotment status, follow these steps:

1. Visit the Registrar’s IPO allotment page.
2. Select Kabra Jewels Limited IPO from the list.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to view your allotment status.

The allotment date is set for January 20, 2025, and investors can track their status through the Registrar’s website.

Objectives of the IPO

Kabra Jewels plans to utilize the Net Proceeds from the IPO for:

1. Repayment of Borrowings – ₹1,000.00 Lakh to reduce debt.
2. Working Capital Requirements – ₹2,200.00 Lakh to fund daily operations and inventory.
3. General Corporate Purpose – For overall business expansion and growth.

Investment Recommendation

Based on the financial performance, GMP trends, and IPO valuation, we recommend Risky Investors to apply for the Kabra Jewels IPO. The company shows strong growth potential with its exclusive designs and established brand KK Jewels. The GMP suggests potential listing gains, and the valuation appears attractive compared to industry peers. However, investors should remain cautious and consider their risk appetite before investing.

The Upcoming IPOs in this week and coming weeks are  Land Immigration, EMA Partners, Stallion India and Capital Numbers.

The Current active IPO are Kabra Jewels, Rikhav Securities and Laxmi Dental.

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