Ken Enterprises Limited, a leading textile company known for its high-quality fabrics on a global scale, is set to launch its IPO on February 5, 2025. This IPO, valued at ₹83.65 Crores, includes a fresh issue of 61.99 Lakh shares worth ₹58.27 Crores and an Offer for Sale (OFS) of 27.00 Lakh shares totaling ₹25.38 Crores. The subscription period for the Ken Enterprises IPO will close on February 7, 2025, and the shares are expected to be listed on the NSE SME on February 12, 2025.

The price for this fixed price issue has been set at ₹94 per equity share, bringing the Market Capitalisation of the company to ₹230.91 Crores at the IPO price. Retail investors need to apply for a minimum of 1,200 shares, which will amount to ₹1,12,800. High-net-worth individuals (HNIs) are required to invest a minimum of 2 lots (6,000 shares), totaling ₹2,25,600.

Objectives of the IPO Funds

Ken Enterprises plans to utilize the proceeds from the IPO for various growth initiatives, including:

1. Acquisitions both in India and abroad (₹625 Lakhs)
2. Purchase of new machinery (₹453.30 Lakhs)
3. Renovation of manufacturing facilities (₹376.54 Lakhs)
4. Meeting working capital requirements (₹2,500 Lakhs)

These steps are aimed at expanding operations and enhancing the company’s production capacity to cater to the growing demand for quality textiles globally.

Financial Performance

Ken Enterprises has shown steady growth in its financials over recent years. For the fiscal year ending November 30, 2024, the company reported revenue from operations of ₹33,285.11 Lakhs. The EBITDA for the same period stood at ₹2,368.53 Lakhs, reflecting solid operational efficiency. Profit after Tax (PAT) for FY 2024 was ₹952.63 Lakhs, showing an improvement compared to previous years.

The company has maintained a pre-issue earnings per share (EPS) of ₹4.86 and a post-issue EPS of ₹3.63 for FY 2024, which indicates strong potential for future earnings growth. The Return on Equity (ROE) for FY 2024 stands at 19.90%, which is an encouraging sign for potential investors.

Grey Market Premium (GMP) and Listing Outlook

Currently, the Grey Market Premium (GMP) for the Ken Enterprises IPO stands at ₹0, indicating that there may be neutral market sentiment towards this IPO. The GMP is indicative but not definitive, and actual performance can vary after the listing. It is important to note that trading based on GMP alone is not a recommended strategy for investors.

IPO Subscription and Allotment Process

The IPO subscription period will begin on February 5, 2025 and close on February 7, 2025. The allotment of shares is expected to be finalized on February 10, 2025, and investors can check their allotment status by visiting the registrar's website and entering their application number, PAN, or DP Client ID.

Ken Enterprises Leadership and Vision

Ken Enterprises is led by Nikunj Hariprasad Bagdiya and Bina Hariprasad Bagdiya, who bring over 26 and 20 years of experience in the textile industry, respectively. The company’s leadership, combined with its commitment to quality and ethics, positions it well to expand its footprint globally.

Investment Outlook and Recommendation

While Ken Enterprises shows promising financial metrics, including consistent revenue growth and solid profit margins, the neutral GMP signals cautious market expectations for listing gains. Based on the current financials and valuation of the IPO, investors may want to approach this IPO with caution and evaluate their investment goals before subscribing.

Investors seeking opportunities with a clearer outlook for listing gains might want to consider other IPOs, but those interested in long-term investments in the textile sector might find Ken Enterprises to be a good fit for their portfolio.

To make an informed decision, it is advised to keep an eye on updates from the Ken Enterprises IPO and seek advice from financial professionals if needed.

The Upcoming IPOs in this week and coming weeks are Chamunda Electricals.

The Current active IPO are Malpani Pipes And Fittings and Dr. Agarwal's Health Care.

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