Kenrik Industries, a company specializing in the manufacturing, wholesaling, and supplying of plain and studded gold jewellery, made its debut on the BSE SME platform with a relatively flat listing. However, the shares quickly surged and were locked in the 5% upper circuit at ₹26.26 per share on Friday, following their initial listing at ₹25 per share. The company, known for its focus on traditional Indian jewellery, offers an extensive range of products, including rings, earrings, pendants, nose rings, bracelets, chains, necklaces, bangles, watches, and wedding jewellery, often studded with diamonds, rubies, cubic zirconia, and other precious stones.

Kenrik Industries had launched a Fixed Price IPO, aiming to raise ₹8.74 Crore, by issuing 34.98 Lakh fresh equity shares. The subscription period for the IPO began on April 29, 2025, and ended on May 06, 2025. The IPO price was fixed at ₹25 per share, and the expected market capitalization of the company post-IPO was ₹31.24 Crores. The lot size for the IPO was 6,000 shares, with retail investors required to invest a minimum of ₹1,50,000.

The IPO attracted substantial interest, with the subscription being oversubscribed by 1.95 times by the last day of the subscription. Despite the flat listing, the strong demand was evident from the shares locking into the upper circuit soon after listing.

The Grey Market Premium (GMP) of the Kenrik Industries IPO remained at ₹0, signaling no significant speculative trading in the unorganized grey market before the listing. GMPs are highly speculative and unreliable, so they do not offer a true indication of the stock’s potential market price after listing.

The Kenrik Industries IPO was managed by TURNAROUND CORPORATE ADVISORS PRIVATE LIMITED as the book running lead manager, with SKYLINE FINANCIAL SERVICES PRIVATE LIMITED acting as the registrar. The market-making services were handled by MNM Stock Broking Private Limited.

IPO Allotment Status

The IPO allotment date for Kenrik Industries is set for May 07, 2025. Investors can check their allotment status by visiting the registrar's website. The process involves submitting application details such as the application number, PAN, or DP Client ID.

Objectives of the IPO

The funds raised from the IPO are intended to be utilized for working capital requirements (₹656.25 Lakh) and general corporate purposes (₹180.00 Lakh).

About Kenrik Industries

Kenrik Industries Limited, founded in Ahmedabad, Gujarat, specializes in crafting high-quality gold jewellery with an emphasis on traditional Indian designs. The company operates on a B2B business model, catering to both high-end and mid-market segments. The company sources raw materials from various vendors, ensuring competitive pricing and flexibility. All jewellery is BIS Hallmark certified, reflecting its commitment to quality and authenticity.

Industry Overview

India's gems and jewellery industry holds a significant position in the economy, contributing around 7% to the GDP. The sector is supported by the government’s initiatives to encourage investment and technological advancements, including 100% Foreign Direct Investment (FDI). As a key player, Kenrik Industries is positioned to benefit from the growing demand for high-quality jewellery, both domestically and internationally.

Risks and Challenges

Kenrik Industries faces several risks, including regional concentration, quality control concerns, price volatility in raw materials, and reliance on discretionary consumer spending. These risks must be managed effectively to ensure long-term stability and growth in the competitive jewellery market.

The company has made significant strides in building a robust business model and expanding its product portfolio. However, maintaining high-quality standards and expanding its market reach will be key to its future success. The IPO proceeds will help the company address working capital needs and strengthen its operations for sustainable growth.

The Upcoming IPOs in this week and coming weeks are Integrity Belrise Industries, Integrity Infrabuild Developers, Accretion Pharmaceuticals, Wagons Learning.

The Current active IPO are Virtual Galaxy Infotech.

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