Kenrik Industries Limited, engaged in manufacturing, wholesaling, and supplying traditional gold jewellery, is set to offer its IPO with a fixed price issue amounting to ₹ 8.74 Crores. The company focuses primarily on handmade gold jewellery, studded with precious and semi-precious stones, including diamonds, rubies, and cubic zirconia. Kenrik Industries’ product portfolio is vast, including rings, earrings, pendants, necklaces, bracelets, bangles, watches, and wedding jewellery.

IPO Details:

• IPO Issue Type: Fixed Price

• Issue Size: ₹ 8.74 Crores

• Fresh Issue: 34.98 Lakh shares

• IPO Price: ₹ 25 per equity share

• Market Capitalisation: ₹ 31.24 Crores

• Subscription Period: April 29, 2025 to May 06, 2025

• Allotment Date: May 07, 2025

• Listing Date: May 09, 2025 (tentative)

• Lot Size: 6,000 shares

• Minimum Investment: ₹ 1,50,000 (Retail), ₹ 3,00,000 (HNIs)

IPO Subscription and GMP:

As of April 30, 2025, the Kenrik Industries IPO has been subscribed 0.41 times on its second day of the subscription period. The IPO is expected to list at ₹ 25, and the Grey Market Premium (GMP) for the Kenrik Industries IPO remains at ₹ 0, suggesting no significant premium in the grey market.

Financials and IPO Valuation:

Kenrik Industries has demonstrated consistent revenue growth over the past few years:

• Revenue from operations: ₹ 4,218.58 Lakh (FY24), ₹ 7,097.46 Lakh (FY23), ₹ 5,204.14 Lakh (FY22)

• EBITDA: ₹ 105.47 Lakh (FY24), ₹ 146.43 Lakh (FY23), ₹ 69.91 Lakh (FY22)

• Profit After Tax: ₹ 78.19 Lakh (FY24), ₹ 108.46 Lakh (FY23), ₹ 47.44 Lakh (FY22)

The company’s pre-issue EPS stands at ₹ 1.21, and post-issue EPS is ₹ 0.87 for FY24. The pre-issue P/E ratio is 20.66x, while the post-issue P/E ratio is 28.81x. The industry P/E ratio is 24x, which indicates that the IPO is fully priced. Key performance metrics also include a ROCE of 10.85% and ROE of 9.01%, suggesting stable returns, but at a more modest rate.

Objectives of the IPO:

Kenrik Industries intends to use the proceeds from the IPO for the following purposes:

1. ₹ 656.25 Lakh for working capital requirements.

2. ₹ 180.00 Lakh for general corporate purposes.

Kenrik Industries IPO - Review and Recommendations:

Given Kenrik Industries' financial performance and the valuation metrics, the IPO appears to be priced fully based on the company's current financial standing. The Grey Market Premium of ₹ 0 indicates that there is no immediate listing gain expectation, and the P/E ratio is higher than the industry average.

While Kenrik Industries has demonstrated steady revenue and profit growth, the valuation appears to be slightly on the higher end, considering its financial metrics. Investors looking for short-term listing gains may want to avoid this IPO, as the Grey Market Premium does not suggest significant upside. For long-term investment, the company’s steady performance in the jewellery sector could still make it a reasonable choice, but the relatively higher valuation compared to industry peers calls for cautious consideration.

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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