Kabra Jewels IPO Overview Kabra Jewels, a prominent name in the retail jewellery sector, is set to launch its IPO on January 15, 2025, with the subscription period concluding on January 17, 2025. The IPO is a fresh issue of 31.25 lakh shares, amounting to ₹40 crore. The price band for this offering has been set at ₹121 to ₹128 per share. Kabra Jewels operates under the brand KK Jewels, offering a diverse range of gold, diamond, and silver ornaments, along with coins, utensils, and other artefacts.

The company is well known for its jewellery design expertise, a key factor in attracting attention from investors. Its financials indicate growth, with revenues from operations in FY 2024 showing steady performance. Kabra Jewels has successfully raised ₹10.86 crores from anchor investors at ₹128 per share, signaling strong interest from institutional buyers.

Grey Market Premium and Listing Expectations The Grey Market Premium (GMP) of Kabra Jewels IPO is currently pegged at ₹50, indicating a 39.06% premium over the top end of the price band. This suggests that the market anticipates a strong listing for the company on the NSE SME platform. Investors looking for short-term gains may find this IPO appealing based on its GMP trends.

Despite this, it is important to note that GMP is based on the demand and supply of shares in the unregulated market and may not represent the true listing price. Nonetheless, the GMP gives an early indication of how the stock may perform on listing day.

Subscription and Allotment Process The Kabra Jewels IPO has received an overwhelming response from investors. As of January 17, 2025, the IPO was subscribed 310.79 times, signaling strong demand among retail and institutional investors. The lot size for retail investors is 1,000 shares, and they are required to invest a minimum of ₹1,28,000. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,56,000 for two lots (2,000 shares).

The IPO allotment will be finalized on January 20, 2025, and investors can check the allotment status on the registrar’s website. The listing date is tentatively set for January 22, 2025.

Kabra Jewels Financials and Performance The company has shown impressive financial growth in recent years. Revenues from operations for FY 2024 stood at ₹16,424.32 lakh, with an EBITDA of ₹2,206.61 lakh, reflecting efficient management and profitability. Kabra Jewels also reported a Profit After Tax (PAT) of ₹939.64 lakh in FY 2024.

The pre-issue earnings per share (EPS) is ₹12.77, while the post-issue EPS is expected to be ₹8.96, indicating a slightly lower EPS post-issue. The company's P/E ratio pre-issue is 10.02x, and post-issue it stands at 14.28x, which is well below the industry P/E ratio of 37x. This makes the IPO attractively priced for investors seeking value-based investments.

Investment Recommendation The financial stability, solid track record, and growth prospects make the Kabra Jewels IPO an appealing choice for risk-tolerant investors. Given the company's strong product offerings, experienced management, and a healthy GMP, Kabra Jewels has the potential to generate listing gains.

For investors seeking to maximize returns from the IPO market, the Kabra Jewels IPO presents an opportunity to enter a rapidly growing sector with robust fundamentals. Retail investors and HNIs alike should consider applying for the IPO, but they must do so with an understanding of the risks associated with market fluctuations post-listing.

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