Ken Enterprises Limited, a leading player in the textile sector, has launched its IPO offering, marking an important milestone in the company's growth journey. The IPO opens on February 5, 2025, and is slated to close by February 7, 2025, with a final allotment expected on February 10, 2025. The shares will list on the NSE SME on or around February 12, 2025.

The Ken Enterprises IPO is set at a price of ₹94 per equity share, and with an offer size of ₹83.65 Crores, it consists of a fresh issue of 61.99 lakh shares worth ₹58.27 Crores and an Offer for Sale of 27 lakh shares valued at ₹25.38 Crores. The market capitalization at the IPO price stands at ₹230.91 Crores, reflecting the growing value of the company in the textile industry.

Lot Size and Investment Requirements:

Investors are required to invest a minimum of ₹1,12,800 for 1,200 shares in one lot. For High-Net-Worth Individuals (HNIs), the minimum investment is 2 lots, which amounts to ₹2,25,600. This structured pricing is designed to cater to both retail and institutional investors, allowing a broad spectrum of participation.

Ken Enterprises IPO Subscription and Allotment:

As of 11:00 AM on February 5, 2025, the IPO has been subscribed 0.40 times on its first day. Investors should stay updated with the live subscription status as the IPO progresses. The allotment status for Ken Enterprises is expected to be finalized by February 10, 2025, with investors able to check the allotment status using their application number, PAN, or DP Client ID.

Objectives and Use of IPO Proceeds:

Ken Enterprises intends to utilize the net proceeds from the IPO for several key purposes:

• ₹625 Lakhs for unidentified acquisitions in India and abroad.
• ₹453.30 Lakhs for the purchase of new machinery.
• ₹376.54 Lakhs for capital expenditure aimed at renovating manufacturing facilities.
• A significant portion of the funds, ₹2,500 Lakhs, will be dedicated to meeting the company's working capital requirements.

Company Overview and Financials:

Ken Enterprises, led by experienced promoters Mr. Nikunj Hariprasad Bagdiya and Ms. Bina Hariprasad Bagdiya, who bring over 46 years of combined experience, has demonstrated steady growth. The company reported a revenue of ₹33,285.11 Lakhs for the period ended November 30, 2024. Its EBITDA also showed a positive trend, reaching ₹2,368.53 Lakhs for the same period. The profit after tax has grown to ₹952.63 Lakhs for the period ending November 2024.

The company's EPS for FY24 is ₹4.86 pre-issue and ₹3.63 post-issue, with a P/E ratio of 19.34x pre-issue and 25.87x post-issue. These figures reflect the solid financial foundation of Ken Enterprises and indicate that the IPO is priced for stability and potential long-term growth.

Ken Enterprises IPO Grey Market Premium (GMP) and Listing Expectations:

Currently, the Grey Market Premium (GMP) for Ken Enterprises stands at ₹0, indicating that the shares are not seeing significant pre-listing trading. The GMP often fluctuates based on market demand and supply, but it should be noted that GMP is not a reliable indicator of actual listing performance. Investors should await the official listing for actual price discovery.

IPO Review and Recommendations:

Considering the company’s steady financial performance and the IPO's valuation metrics, experts have expressed a neutral view on the IPO. The pre-issue P/E ratio is relatively high, and the GMP indicates limited immediate listing gains. Investors are advised to avoid this IPO if they are looking for short-term listing gains, but it could still present long-term investment opportunities based on Ken Enterprises' growth trajectory in the textile sector.

The Upcoming IPOs in this week and coming weeks are  Readymix Construction, Solarium Green, Eleganz Interiors, PS Raj Steels, Chandan Healthcare, Ajax Engineering.

The Current active IPO are Ken Enterprises, Amwill Healthcare,Chamunda Electricals.

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