Kabra Jewels, a prominent name in the retail jewellery sector, made a stellar debut on the NSE SME platform on January 22, 2025. The company's shares opened at ₹243, marking a 90% premium over its IPO price of ₹128, and surged to a high of ₹255.35, nearly doubling investors' wealth.

IPO Highlights

The Kabra Jewels IPO, a book-built issue, aimed to raise ₹40 crores through the issuance of 31.25 lakh fresh equity shares. The IPO was open for subscription from January 15 to January 17, 2025, with shares offered in a price band of ₹121-₹128 per share.

The issue saw an oversubscription of 356 times, driven by significant demand from non-institutional investors (NIIs) and retail investors. The anchor investors played a key role, contributing ₹10.86 crores by subscribing to 8,49,000 shares at the upper price band of ₹128.

Kabra Jewels' Business and Offerings

Kabra Jewels operates under the brand name KK Jewels, offering a diverse range of:

• Gold, diamond, and silver ornaments
• Gold and silver coins, utensils, and artifacts

The company's expertise lies in jewellery design and customized creations, catering to a growing customer base in Ahmedabad and beyond.

Financial Performance

Kabra Jewels has demonstrated consistent financial growth, as evident from its revenue and profit figures:

• Revenue for FY2024: ₹16,424.32 lakh
• EBITDA for FY2024: ₹2,206.61 lakh
• Profit after Tax for FY2024: ₹939.64 lakh

The company's Return on Equity (ROE) for FY2024 stands at 30.25%, and its pre-issue EPS is ₹12.77, highlighting its strong financial position.

Grey Market Premium (GMP) Trends

The Grey Market Premium (GMP) indicated a potential listing gain of 39.06%, with an expected listing price of ₹178 against the IPO price of ₹128. However, Kabra Jewels' actual listing surpassed expectations, rewarding investors with substantial gains.

Key Objectives of the IPO

The net proceeds from the IPO are earmarked for:

1. Repayment of borrowings: ₹10 crores
2. Working capital requirements: ₹22 crores
3. General corporate purposes

Subscription and Allotment Details

The IPO was divided into multiple investor categories:

• Retail Investors: Minimum investment of ₹1,28,000 for 1,000 shares.
• High-Net-Worth Individuals (HNIs): Minimum of ₹2,56,000 for 2,000 shares.

The allotment date was finalized on January 20, 2025, and investors could check their allotment status online via the registrar, Cameo Corporate Services Limited.

Market Debut

The strong listing of Kabra Jewels reflects the growing investor interest in the jewellery sector and confidence in the company’s potential. The oversubscription of 356 times underscores robust demand, while the listing premium highlights investor optimism.

Investors and market watchers can look forward to Kabra Jewels’ continued growth as it strengthens its foothold in the retail jewellery market under the leadership of its experienced promoters, Mr. Kailash Kabra and Mrs. Jyothi Kabra.

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