Kenrik Industries Limited, a prominent player in the manufacturing, wholesaling, and supplying of plain and studded gold jewellery, is all set to launch its Initial Public Offering (IPO) in 2025. The company, primarily focused on traditional Indian jewellery, offers a wide range of products, including rings, earrings, armlets, pendants, nose rings, bracelets, chains, necklaces, bangles, watches, and luxury wedding jewellery.

The IPO is a Fixed Price Issue worth ₹8.74 Crores, entirely consisting of a fresh issue of 34.98 lakh shares. The issue opens for subscription on April 29, 2025, and closes on May 6, 2025. The allotment of shares is expected to be finalized on May 7, 2025, with the shares scheduled for listing on the BSE SME on May 9, 2025.

IPO Details:

• Price Per Share: ₹25

• Market Capitalization: ₹31.24 Crores (at ₹25 per share)

• Lot Size: 6,000 shares

• Retail Investment: Minimum of ₹1,50,000 (6,000 shares)

• HNIs: Minimum of ₹3,00,000 (12,000 shares)

The book running lead manager for the IPO is TURNAROUND CORPORATE ADVISORS PRIVATE LIMITED, while SKYLINE FINANCIAL SERVICES PRIVATE LIMITED acts as the registrar. The market maker for the issue is MNM Stock Broking Private Limited.

Kenrik Industries IPO Subscription Status:

As of May 2, 2025, the IPO has been subscribed 0.78 times on its third day of subscription. Investors are encouraged to track the live subscription status at the BSE website for the latest updates.

Grey Market Premium (GMP):

The Grey Market Premium for Kenrik Industries IPO stands at ₹0. Given the financials and the current market dynamics, the GMP does not indicate any significant listing gains. It is important to note that GMP is largely unregulated and based on informal market activities, with no guaranteed reflection of the actual listing price.

Kenrik Industries IPO Financial Overview:

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

• FY 2024: ₹4,218.58 Lakh

• FY 2023: ₹7,097.46 Lakh

• FY 2022: ₹5,204.14 Lakh

• FY 2021: ₹3,269.17 Lakh

The EBITDA for FY 2024 was ₹105.47 Lakh, with a Profit After Tax (PAT) of ₹78.19 Lakh, showcasing steady profitability. The company's pre-issue Earnings Per Share (EPS) stands at ₹1.21, while the post-issue EPS will be ₹0.87, indicating a potential dip in earnings post-IPO.

The Price-to-Earnings (P/E) Ratio pre-issue is 20.66x, and post-issue is 28.81x, compared to the industry average of 24x. The Return on Capital Employed (ROCE) is 10.85%, while the Return on Equity (ROE) is 9.01%, signaling moderate profitability and efficiency.

IPO Objective and Utilization of Proceeds:

Kenrik Industries plans to utilize the net proceeds from the IPO for the following purposes:

1. ₹656.25 Lakh for meeting working capital requirements.

2. ₹180.00 Lakh for general corporate purposes.

IPO Review and Conclusion:

While Kenrik Industries has a solid track record in traditional Indian jewellery manufacturing, the IPO valuation and financial metrics suggest that it may not offer substantial short-term gains or long-term investment potential at this stage. The P/E ratio is on the higher end, and the lack of Grey Market Premium further weakens the listing gain prospects.

Given the financials and the IPO's premium pricing, we recommend investors to avoid subscribing to the Kenrik Industries IPO for listing gains or long-term investment. However, retail investors with a keen interest in the gold jewellery sector may consider the IPO as a diversification tool, with a long-term perspective.

Investors should focus on Kenrik Industries' future growth trajectory, including its working capital requirements and its ability to expand within the competitive jewellery market.

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

The Current active IPO are Wagons Learning, Kenrik Industries.

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