Kenrik Industries, primarily engaged in manufacturing, wholesaling, and supplying plain and studded gold jewellery, is launching its IPO as a fixed-price issue. The company specializes in traditional Indian jewellery, offering products such as rings, earrings, pendants, necklaces, bangles, and watches. Their jewellery is crafted from gold and studded with precious stones, including diamonds, rubies, and cubic zirconia. The IPO aims to raise ₹ 8.74 Crores through the issuance of 34.98 Lakh shares at ₹ 25 per equity share. With a Market Capitalisation of ₹ 31.24 Crores at the IPO price, the lot size is set at 6,000 shares.

The subscription period for Kenrik Industries IPO will open on April 29, 2025, and close on May 6, 2025. The allotment is expected to be finalized on May 7, 2025, with shares listing on BSE SME on May 9, 2025. Investors are required to invest a minimum of ₹ 1,50,000 for retail investors and ₹ 3,00,000 for High-Net-Worth Individuals (HNIs).

Key Details of Kenrik Industries IPO:

1. Issue Type: Fixed Price Issue of ₹ 8.74 Crores

2. IPO Price: ₹ 25 per share

3. Market Capitalisation: ₹ 31.24 Crores

4. Subscription Period: April 29, 2025 - May 6, 2025

5. Lot Size: 6,000 shares

6. Listing Date: May 9, 2025

7. Lead Manager: TURNAROUND CORPORATE ADVISORS PRIVATE LIMITED

8. Registrar: SKYLINE FINANCIAL SERVICES PRIVATE LIMITED

9. Market Maker: MNM Stock Broking Private Limited

IPO Subscription and GMP:

As of May 2, 2025, Kenrik Industries IPO has been subscribed 0.67 times on its third day of the subscription period. The Grey Market Premium (GMP) for the IPO is ₹ 0, suggesting no immediate listing gain based on market conditions. The GMP may not reflect the actual performance of the shares, as trading in the grey market is largely unregulated.

Kenrik Industries IPO Objectives:

The proceeds from the IPO are planned to be used for:

1. ₹ 656.25 Lakh for working capital requirements

2. ₹ 180.00 Lakh for general corporate purposes

Financial Performance:

Kenrik Industries has shown steady financial growth over the years. The revenues for the period ending October 31, 2024, stood at ₹ 4,218.58 Lakh, with EBITDA of ₹ 105.47 Lakh and Profit After Tax (PAT) of ₹ 78.19 Lakh. The company has been consistently improving its financials, indicating a healthy growth trajectory. The pre-issue EPS stands at ₹ 1.21, with a post-issue EPS of ₹ 0.87 for FY24.

IPO Valuation and Performance Metrics:

The company’s pre-issue P/E ratio is 20.66x, and the post-issue P/E ratio is 28.81x, which is slightly above the industry average of 24x. The company’s return on capital employed (ROCE) for FY24 is 10.85%, while the return on equity (ROE) and return on net worth (RoNW) are 9.01% and 8.62%, respectively. While these financials suggest moderate performance, the company is priced fully based on its financial performance.

IPO Recommendation:

Given the current financial metrics and the Grey Market Premium indicating no listing gains, investors are advised to Avoid the Kenrik Industries IPO for short-term listing gains or long-term investments. The pricing of the IPO, combined with the company's performance, does not suggest significant immediate upside potential.

Check the IPO Subscription Status:
To track the latest subscription status and check your allotment, visit the official registrar's website on or after May 7, 2025.

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

The Current active IPO are Wagons Learning, Kenrik Industries, Arunaya Organics.

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