Kabra Jewels Limited specializes in retail jewellery, offering a broad range of gold, diamond, and silver ornaments, along with gold and silver coins, utensils, and other unique artifacts. The company's primary strength lies in jewellery design, and they market their exclusive creations under the brand name "KK Jewels".

Kabra Jewels IPO Overview

The Kabra Jewels IPO is a Book Built Issue worth ₹40.00 Crores, consisting entirely of a Fresh Issue of 31.25 Lakh shares. The IPO opens on January 15, 2025, and closes on January 17, 2025. The shares are expected to be listed on the NSE SME on or about January 22, 2025.

• Price Band: ₹121 to ₹128 per share
• Market Capitalization: ₹134.20 Crores at the upper price band of ₹128
• Lot Size: 1,000 shares
• Minimum Investment: ₹1,28,000 for retail investors
• HNI Minimum Investment: ₹2,56,000 (2 lots)

The lead manager for the IPO is Marwadi Chandarana Intermediaries Brokers Private Limited, while Cameo Corporate Services Limited is the registrar. Giriraj Stock Broking Private Limited is the designated market maker for the issue.

Grey Market Premium (GMP) & Subscription Trend

The Grey Market Premium (GMP) for Kabra Jewels IPO has shown notable momentum. As of January 14, 2025, the GMP stood at ₹50, indicating an expected listing gain of approximately 39.06%. However, it is important to remember that GMP reflects unregulated market sentiment and should not be solely relied upon for price discovery.

Day-Wise GMP Trend:

• 14 Jan 2025: GMP ₹50, expected listing price ₹178 (+39.06%)
• 09 Jan 2025: GMP ₹20, expected listing price ₹148 (+15.63%)

Kabra Jewels IPO Subscription Status

As of 11:00 AM on January 17, 2025, the Kabra Jewels IPO has been subscribed 70.15 times on its final subscription day, showing strong investor interest.

Kabra Jewels IPO Allotment Status

The allotment date for the Kabra Jewels IPO is January 20, 2025. To check the allotment status, follow these steps:

1. Visit the Registrar’s website (Link: Registrar Website).
2. Select Kabra Jewels Limited IPO from the dropdown list.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to check your allotment status.

Objectives of the Kabra Jewels IPO

Kabra Jewels intends to utilize the net proceeds from the IPO for:

1. Repayment of borrowings: ₹1,000 Lakh
2. Working Capital requirements: ₹2,200 Lakh
3. General Corporate Purposes: Additional funds for business growth

Kabra Jewels IPO Review

Financial Performance:

• Revenue for FY24 (till Nov 30): ₹12,584.47 Lakh (Growth from ₹1,178.55 Lakh in FY22)
• EBITDA: ₹2,021.11 Lakh (up from ₹1,178.55 Lakh in FY22)
• Profit After Tax (PAT): ₹880.89 Lakh (Growth from ₹540.46 Lakh in FY22)

The pre-issue P/E ratio of the company is 10.02x, and the post-issue P/E ratio is 14.28x, which is considerably lower than the industry average of 37x.

Recommendation

Based on the company's strong financial performance, reasonable IPO pricing, and significant GMP, the Kabra Jewels IPO holds potential for listing gains. However, given the nature of the jewellery sector, it is suited for risk-taking investors who are looking for growth in the retail and jewellery space.

Final Thoughts: Investors seeking listing gains and those with a high-risk tolerance may consider applying for the Kabra Jewels IPO. The company’s consistent growth trajectory and valuable market position make it a promising opportunity in the retail jewellery sector.

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