Kenrik Industries, a traditional jewellery manufacturer specialising in plain and studded gold ornaments, recently concluded its Initial Public Offering (IPO) on a promising note. The company, focused on handcrafted gold jewellery studded with diamonds, rubies, cubic zirconia, and other precious and semi-precious stones, offers a wide range of products including rings, necklaces, bangles, pendants, bracelets, and wedding ornaments. Their traditional designs appeal largely to the Indian market, especially during festive and wedding seasons.

The Kenrik Industries IPO, launched as a Fixed Price Issue, aimed to raise ₹8.74 crores entirely through a fresh issue of 34.98 lakh equity shares. The subscription window opened on April 29, 2025, and closed on May 6, 2025. The IPO price was set at ₹25 per share, with a market capitalisation of ₹31.24 crores at issue price. The minimum lot size was 6,000 shares, translating to a minimum investment of ₹1,50,000 for retail investors, while HNIs had to invest in at least 2 lots worth ₹3,00,000.

The IPO was managed by TURNAROUND CORPORATE ADVISORS PRIVATE LIMITED as the Book Running Lead Manager, with SKYLINE FINANCIAL SERVICES PRIVATE LIMITED acting as the Registrar. MNM Stock Broking Private Limited was appointed as the Market Maker for this SME IPO.

Despite being a niche player in the traditional gold jewellery industry, the IPO saw moderate investor interest, getting subscribed 1.95 times on its final day. This reflects cautious optimism among investors, especially given that the Grey Market Premium (GMP) for the issue remained ₹0 throughout the subscription period, indicating no speculative activity or demand premium in the unorganised market.

The expected listing date for the Kenrik Industries IPO is May 9, 2025, on the BSE SME platform, with the allotment finalisation scheduled for May 7, 2025. Investors will be able to check their allotment status by visiting the registrar's website. They can check their allotment by selecting Kenrik Industries Limited from the dropdown, entering their PAN number, application ID, or DP Client ID, and submitting the form to view their status.

The proceeds from the IPO will be used as follows:

• ₹656.25 lakh will be utilised to meet working capital requirements.

• ₹180.00 lakh will be allocated towards general corporate purposes.

This allocation suggests the company is preparing for operational scalability and liquidity enhancement rather than asset expansion or R&D.

Financial Overview and Performance Review

Kenrik Industries has shown steady financial growth over the last few years. The revenue from operations for the financial years ending 2022, 2023, and 2024, and for the period ending October 31, 2024, were ₹3,269.17 lakh, ₹5,204.14 lakh, ₹7,097.46 lakh, and ₹4,218.58 lakh, respectively. The EBITDA for the same periods stood at ₹54.62 lakh, ₹69.91 lakh, ₹146.43 lakh, and ₹105.47 lakh, showing a clear upward trajectory in profitability and efficiency.

The Profit After Tax (PAT) also increased gradually:

• FY22: ₹38.12 lakh

• FY23: ₹47.44 lakh

• FY24: ₹108.46 lakh

• Oct FY25 (half-year): ₹78.19 lakh

These numbers indicate consistent financial improvement, which might make the company attractive from a long-term stability perspective.

Valuation and Investment Metrics

The pre-issue EPS for FY24 is ₹1.21, while the post-issue EPS drops to ₹0.87 due to equity dilution. The pre-issue P/E ratio is 20.66x, and post-issue P/E is 28.81x, which is higher than the industry average P/E of 24x, suggesting that the IPO may be fully priced or slightly expensive.

The Return on Capital Employed (ROCE) stands at 10.85%, and the Return on Equity (ROE) is 9.01%, with Return on Net Worth (RoNW) at 8.62%. These are decent but not extraordinary figures, and combined with the P/E ratios, they suggest limited upside potential at the current valuation.

Moreover, based on the most recent financials, the annualised EPS is ₹2.55, translating to a P/E ratio of 9.78x, which is more attractive, but only if those earnings are sustainable and consistent.

Grey Market Premium (GMP) Analysis

Throughout the subscription period, the Grey Market Premium of Kenrik Industries IPO remained at ₹0, indicating no unofficial premium being offered for shares in the grey market. This shows limited speculative interest or potential listing gains, which is a key metric for retail investors seeking short-term profits.

However, it is essential to note that Grey Market activity is unregulated, and investors are always advised to make decisions based on fundamentals rather than speculative trends.

Expert Review and Recommendations

While Kenrik Industries Limited does show promise in terms of traditional product offerings and stable financials, several red flags limit its attractiveness as an investment opportunity:

• Fully priced IPO, with a P/E higher than the industry average.

• Zero GMP, which signals no listing gains.

• Small issue size, which often leads to low liquidity post-listing.

• Focus only on traditional jewellery, with limited diversification in product strategy or digital push.

Thus, experts suggest that investors avoid subscribing to the Kenrik Industries IPO either for listing gains or long-term holding. Despite the decent operational track record, the valuation concerns and lack of grey market buzz reduce the IPO's appeal.

Conclusion

To sum up, Kenrik Industries IPO attracted modest investor interest, with a subscription of 1.95 times, but lacks the spark needed to draw enthusiastic participation. The company does well in terms of financial consistency and niche focus, but is weighed down by pricing concerns, muted GMP, and limited scalability.

Investors are advised to tread cautiously and avoid this IPO for both short-term and long-term investment goals, unless there is substantial post-listing performance or strategic expansion plans that come to light.

Stay updated with the latest on Kenrik Industries IPO allotment status, listing date, and other SME IPO news for April and May 2025.

The Upcoming IPOs in this week and coming weeks are Integrity Belrise Industries,Infrabuild Developers, Virtual Galaxy Infotech, Accretion Pharmaceuticals, Wagons Learning.

The Closed IPOs are Srigee DLM, Manoj Jewellers.

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