Kenrik Industries Limited, known for its craftsmanship in traditional Indian gold jewellery, has launched its IPO (Initial Public Offering), aiming to raise ₹ 8.74 Crores through a Fixed Price Issue. This IPO consists entirely of a fresh issue of 34.98 lakh shares. The offering opens on April 29, 2025, and closes on May 06, 2025, with allotment expected by May 07, 2025, and shares likely to be listed on May 09, 2025, on the BSE SME.

The share price for Kenrik Industries IPO is set at ₹ 25 per equity share, placing its market capitalisation at ₹ 31.24 Crores. Investors will need to invest in minimum lot sizes: 6,000 shares (₹ 1,50,000 for retail investors) and 12,000 shares (₹ 3,00,000 for High-Net-Worth Individuals or HNIs).

The Grey Market Premium (GMP), as of the latest update, is ₹ 0, indicating that no significant market action has yet been observed for this offering. The IPO’s GMP reflects no real trading of shares, as the price discovery process can only be effectively carried out post-listing on the stock exchange. The GMP is a speculative value, dependent on supply and demand factors in the unofficial market.

As of April 29, 2025, the live subscription status of the Kenrik Industries IPO stands at 0.09x on its first day, signaling relatively low demand initially. Investors can check the real-time subscription status on the BSE website as the IPO period progresses.

Financial Overview and Key Metrics

Kenrik Industries’ financials indicate a steady growth trajectory. For the fiscal years ended 2024, 2023, and 2022, the company reported revenues of ₹ 7,097.46 lakh, ₹ 5,204.14 lakh, and ₹ 3,269.17 lakh, respectively. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the same periods stood at ₹ 146.43 lakh, ₹ 69.91 lakh, and ₹ 54.62 lakh, respectively, showing a consistent increase in profitability. The Profit After Tax (PAT) for FY24 was ₹ 108.46 lakh, demonstrating the company’s ability to generate returns.

For the FY24, the company’s pre-issue EPS (Earnings Per Share) is ₹ 1.21, and the post-issue EPS is expected to be ₹ 0.87. The pre-issue P/E ratio stands at 20.66x, and the post-issue ratio is 28.81x, which is higher than the industry P/E ratio of 24x, suggesting a fully priced offering.

IPO Objectives and Use of Funds

Kenrik Industries has outlined clear objectives for the utilization of the IPO proceeds:

1. ₹ 656.25 Lakh to meet its working capital requirements.

2. ₹ 180.00 Lakh for general corporate purposes.

IPO Review and Investment Recommendation

Based on the financial data and IPO metrics, Kenrik Industries shows a steady growth pattern, but the valuation appears fully priced at the current levels. The EPS is modest, and while there is profitability, the company’s GMP suggests limited upside in the short term. The P/E ratio and financials do not indicate exceptional growth potential for listing gains. Given the high valuation and low demand signals from the GMP and subscription status, investors may consider avoiding this IPO for short-term listing gains.

In conclusion, investors looking for long-term investment in a company with strong fundamentals in the gold jewellery sector should closely watch the post-listing performance. Retail investors may find the current valuation a bit high, and it is advisable to wait for further developments in the company’s post-listing stock performance. However, for those interested in traditional Indian jewellery, this IPO could still be a viable option depending on their investment horizon and risk appetite.

This analysis should help investors make an informed decision about the Kenrik Industries IPO, but always remember to consider professional advice and market trends before making any investment.

The Upcoming IPOs in this week and coming weeks are  Wagons Learning, Srigee DLM, Manoj Jewellers.

The Current active IPO are Kenrik Industries,Arunaya Organics, Ather Energy, Iware Supplychain Services.

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