What's covered under the Article:

Kenrik Industries, an established player in the manufacturing and wholesaling of traditional Indian gold jewellery, is launching its Initial Public Offering (IPO) as a Fixed Price Issue for ₹8.74 Crores. The IPO comprises 34.98 lakh shares being offered by the company, priced at ₹25 per equity share. This article provides comprehensive details about the Kenrik Industries IPO, including subscription details, allotment process, financial performance, and Grey Market Premium (GMP), helping investors make informed decisions.

About Kenrik Industries:

Kenrik Industries is primarily focused on the production and supply of handmade gold jewellery, which is studded with precious and semi-precious stones like diamonds, rubies, and cubic zirconia. Their product portfolio includes a wide range of items such as rings, earrings, bracelets, chains, pendants, and luxury items, with a special emphasis on traditional Indian jewellery. The company’s customer base includes individuals seeking luxury wedding jewellery, as well as those looking for elegant fashion ornaments.

Kenrik Industries IPO Subscription Details:

The subscription period for the Kenrik Industries IPO will open on April 29, 2025, and close on May 06, 2025. The IPO price band is set at ₹25 per share, and the market capitalization of Kenrik Industries at the IPO price will be ₹31.24 Crores.

The lot size for the IPO is 6,000 shares, meaning that retail investors will need to invest a minimum of ₹1,50,000. High-Net-Worth Individuals (HNIs) will need to apply for at least 2 lots, equating to 12,000 shares, which would cost ₹3,00,000. Kenrik Industries is listing its shares on the BSE SME platform, with a tentative listing date of May 09, 2025.

Kenrik Industries IPO Grey Market Premium (GMP):

As of April 25, 2025, the Grey Market Premium (GMP) for Kenrik Industries IPO is reported to be ₹0, indicating no premium or discount. This suggests that the demand and supply of the shares in the Grey Market is balanced and there are no significant expectations of immediate listing gains. It's important to note that the GMP is only an indicative measure and does not influence the actual listing price determined by the exchange.

Kenrik Industries IPO Allotment and Subscription Status:

The IPO allotment date is scheduled for May 07, 2025, and investors can check the allotment status on the registrar’s website. Here's how to check your status:

1. Visit the registrar's website.

2. Select Kenrik Industries IPO from the dropdown.

3. Enter your application number, PAN, or DP Client ID.

4. Submit the details to view your allotment status.

Objectives of the IPO:

Kenrik Industries plans to utilize the proceeds from the IPO for:

1. ₹656.25 Lakh towards working capital requirements.

2. ₹180.00 Lakh for general corporate purposes.

Kenrik Industries IPO Financial Review:

The company has shown steady growth over the past few years. The revenues for the fiscal years 2024, 2023, and 2022 were ₹7,097.46 Lakh, ₹5,204.14 Lakh, and ₹3,269.17 Lakh, respectively, indicating positive growth. The EBITDA and Profit After Tax (PAT) figures have also seen consistent growth, with the company reporting a PAT of ₹108.46 Lakh for FY 2024.

Despite these positive financials, the company’s Pre-Issue EPS stands at ₹1.21 and Post-Issue EPS at ₹0.87 for FY 2024, with the P/E ratio of 28.81x post-issue, which is higher than the industry P/E ratio of 24x. This suggests the IPO may be priced at a premium compared to industry standards.

Expert Opinion:

While the company has shown solid growth in terms of revenue and profits, the Grey Market Premium of ₹0 and the higher P/E ratio indicate that the IPO is fully priced. Investors seeking immediate listing gains might find the Kenrik Industries IPO less attractive due to the absence of a significant GMP. Based on the financial performance and the pricing of the IPO, experts recommend avoiding the Kenrik Industries IPO for listing gains or long-term investment purposes.

Conclusion:

The Kenrik Industries IPO offers an opportunity to invest in a traditional gold jewellery company with a strong product portfolio and steady financial performance. However, given the lack of premium in the Grey Market, investors may want to evaluate other options if they are looking for a short-term listing gain. For long-term investors, the company's pricing and growth prospects may warrant closer consideration, but caution is advised due to the current market conditions.

The Upcoming IPOs in this week and coming weeks are Ather Energy, Iware Supplychain Services, Arunaya Organics,Kenrik Industries.

The Closed IPOs are Tankup Engineers.

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