Ken Enterprises is a prominent name in the textile industry, specializing in manufacturing high-quality fabrics. With a proven track record of providing exceptional customer service and ethical practices, the company has made a mark both in India and internationally. The company is now seeking to raise ₹83.65 Crores via a Fixed Price Issue, which includes a fresh issue of 61.99 lakh shares and an Offer for Sale of 27.00 lakh shares.

The price band for the IPO has been set at ₹94 per equity share, making it an attractive entry point for potential investors. With a market capitalization of ₹230.91 Crores at the IPO price, Ken Enterprises plans to utilize the funds raised for several business expansions and working capital needs.

IPO Details:

• Subscription Period: February 5, 2025 – February 7, 2025
• IPO Price: ₹94 per share
• Market Capitalization: ₹230.91 Crores
• Lot Size: 1,200 shares (₹1,12,800 for retail investors)
• Minimum Investment: ₹1,12,800 for retail investors, ₹2,25,600 for High Net-Worth Individuals (HNIs)
• Listing Date: Expected on February 12, 2025

Grey Market Premium (GMP) and Subscription Status
As of February 6, 2025, the IPO has been 2.45 times subscribed on its second day of the subscription period, indicating healthy demand for the shares. However, the Grey Market Premium (GMP) is ₹0, reflecting that no significant premium is expected on listing, making this IPO less appealing for listing gains.

IPO Allotment and How to Check Allotment Status
The allotment of shares is expected to be finalized by February 10, 2025, and investors can check their status on the registrar’s website. To check, follow these simple steps:

1. Visit the IPO allotment status page.
2. Select Ken Enterprises IPO from the dropdown menu.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to view your allotment status.

Objectives of the IPO
The funds raised from the IPO will be utilized for various business purposes:

1. ₹625 Lakhs for acquisitions in India and abroad.
2. ₹453.30 Lakhs to purchase new machinery for the business.
3. ₹376.54 Lakhs for capital expenditure to renovate manufacturing facilities.
4. ₹2,500 Lakhs will be used to meet working capital requirements.

Financial Performance and Analysis
Ken Enterprises has demonstrated steady growth in revenue and profit over the years, with the most recent figures indicating ₹33,285.11 Lakh in revenue for the period ending November 30, 2024. The EBITDA has been consistent at around ₹2,368.53 Lakh, reflecting operational efficiency. The Profit After Tax (PAT) has grown steadily, indicating a sound financial position.

With a pre-issue EPS of ₹4.86 and a post-issue EPS of ₹3.63, the company has a P/E ratio of 19.34x (pre-issue) and 25.87x (post-issue), suggesting the IPO is fairly priced. The ROCE of 51.52% and ROE of 19.90% further add to the company's positive financial outlook.

Investment Recommendations
While the IPO is not priced at a significant premium, Ken Enterprises presents itself as a stable investment option for those looking for long-term growth in the textile sector. Given the GMP of ₹0, investors seeking immediate listing gains may want to reconsider. However, for long-term investors, this IPO could provide steady returns as the company expands and improves its operations.

We recommend cautious participation in the Ken Enterprises IPO, especially for those who are looking beyond short-term gains and have a long-term investment strategy.

The Upcoming IPOs in this week and coming weeks are Eleganz Interiors, PS Raj Steels, Chandan Healthcare, Ajax Engineering, Hexaware Technologies.

The Current active IPO are Readymix Construction, Solarium Green, Ken Enterprises, Amwill Healthcare,Chamunda Electricals.

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