Kenrik Industries, known for manufacturing, wholesaling, and supplying traditional Indian gold jewellery, has announced its IPO, offering fresh shares worth ₹8.74 Crores. With a focus on high-quality gold jewellery studded with diamonds, rubies, and cubic zirconia, the company’s product portfolio includes rings, earrings, armlets, pendants, nose rings, bangles, watches, and wedding jewellery. The IPO is poised to raise funds to meet the company’s working capital needs and for general corporate purposes.

IPO Details

• Issue Size: ₹8.74 Crores (Fresh Issue)

• Issue Price: ₹25 per equity share

• Lot Size: 6,000 shares

• Market Capitalization: ₹31.24 Crores at IPO price

• Retail Minimum Investment: ₹1,50,000

• HNIs Minimum Investment: ₹3,00,000 for 12,000 shares

Kenrik Industries is primarily targeting retail investors and high-net-worth individuals (HNIs) through its IPO. The IPO is being managed by TURNAROUND CORPORATE ADVISORS PRIVATE LIMITED as the book running lead manager, and SKYLINE FINANCIAL SERVICES PRIVATE LIMITED is the registrar for the issue. Additionally, MNM Stock Broking Private Limited will act as the Market Maker for the IPO.

Key Dates

• IPO Opens: April 29, 2025

• IPO Closes: May 06, 2025

• Allotment Date: May 07, 2025

• Listing Date: May 09, 2025 (tentative)

Kenrik Industries IPO GMP (Grey Market Premium)

As of April 25, 2025, the Grey Market Premium (GMP) for Kenrik Industries IPO is ₹0, reflecting a neutral sentiment in the market. The lack of significant trading in the grey market means that the discovery of the IPO’s price is mainly dependent on investor demand once the shares are listed on the exchange.

Objectives of the IPO

The company plans to use the proceeds from the IPO for two key purposes:

1. Working Capital: ₹656.25 Lakh

2. General Corporate Purposes: ₹180.00 Lakh

Financial Performance

Kenrik Industries has shown steady growth in its revenues over the past few years:

• FY2024 Revenue: ₹7,097.46 Lakh

• FY2023 Revenue: ₹5,204.14 Lakh

• FY2022 Revenue: ₹3,269.17 Lakh

In terms of profitability:

• EBITDA for FY2024: ₹146.43 Lakh

• Profit after Tax (PAT) for FY2024: ₹108.46 Lakh

With an increasing revenue stream and a positive financial trajectory, the company’s performance suggests stable growth in the jewellery industry.

Valuation & Ratios

The company's pre-issue P/E ratio stands at 20.66x, while the post-issue P/E ratio will be 28.81x. The industry average P/E ratio is 24x. These figures indicate that the IPO is priced slightly higher compared to the industry average. The ROCE for FY24 is 10.85%, and the ROE for FY24 stands at 9.01%, indicating decent returns on capital and equity.

Investment Recommendation

Given the company’s solid financial performance and market presence, Kenrik Industries presents a stable but fully-priced IPO. The lack of any significant Grey Market Premium (GMP) suggests limited listing gains. Investors looking for short-term gains or long-term growth may want to proceed cautiously. Based on the current financials and valuation, we recommend avoiding the IPO for listing gain purposes. However, long-term investors with a specific interest in traditional Indian jewellery may consider it after a careful evaluation of post-listing performance.

IPO Allotment Status Check

The allotment status of the Kenrik Industries IPO will be available on the registrar’s website from May 7, 2025. Investors can check their allotment status by entering their application number or PAN on the IPO allotment page. This will help investors stay updated on their share allocation.

In conclusion, Kenrik Industries offers an intriguing opportunity for investors with an interest in the gold jewellery market. However, given the IPO's fully-priced nature and the absence of significant Grey Market Premium, investors may want to weigh their options carefully before subscribing.

The Upcoming IPOs in this week and coming weeks are Arunaya Organics,Kenrik Industries,Wagons Learning,Srigee DLM.

The Current active IPO are Ather Energy, Iware Supplychain Services.

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