Wagons Learning IPO: A Comprehensive Overview...
30 Apr, 2025
Kenrik Industries IPO: A Detailed Investment Analysis
Kenrik Industries Limited, an Ahmedabad-based manufacturer specializing in traditional Indian jewelry, is set to launch its Initial Public Offering (IPO) on April 29, 2025. This SME IPO, listed on the BSE SME platform, presents an opportunity for investors to delve into the handcrafted jewelry market. In this comprehensive analysis, we will explore the company's background, IPO specifics, financial health, and provide insights into whether this investment aligns with your portfolio.â
The IPO is set to be listed on the BSE SME (Bombay Stock Exchange Small and Medium Enterprises) platform. This platform provides a dedicated space for small and medium-sized enterprises to raise capital and gain visibility in the financial markets. The listing is scheduled for May 9, 2025, under the script code KENRIK. Investors can track the company's performance and trading activity on the BSE SME platform post-listing.
Company Overview
Established in 2017, Kenrik Industries specializes in the design, manufacturing, and wholesale distribution of traditional Indian jewelry. Their product range includes handcrafted gold ornaments studded with precious and semi-precious stones such as diamonds, rubies, and cubic zirconia. The company operates on a Business-to-Business (B2B) model, catering to high-end, mid-market, and value market segments. All products are BIS Hallmark certified, ensuring quality and authenticity. Kenrik Industries maintains a strong presence in the market through its focus on customer specifications and solid relationships within the jewelry industry.â
Company History: From Private Roots to Public Offering
Kenrik Industries Limited was established on February 28, 2017, in Ahmedabad, Gujarat, under the name Kenrik Industries Private Limited. Initially operating as a private entity, the company specialized in the design, manufacturing, and wholesale distribution of traditional Indian jewelry, focusing on handcrafted gold ornaments studded with precious and semi-precious stones.â
In February 2018, the company transitioned to a public limited company, adopting its current name, Kenrik Industries Limited. This strategic move aimed to enhance its market presence and access capital for expansion. The company is registered with the Registrar of Companies, Ahmedabad, and is classified as a Non-Government Public Limited Company.
Over the years, Kenrik Industries has built a reputation for producing high-quality, BIS Hallmark certified jewelry, catering to various market segments, including high-end, mid-market, and value markets. The company's commitment to quality and customer satisfaction has been pivotal in its growth trajectory.â
As of now, Kenrik Industries is actively engaged in the fashion and accessories industry, with its registered office located at 171/FF/9, Bhawani Chambers, Hathi Khana, Ahmedabad, Gujarat, India. The company continues to operate with a focus on expanding its footprint in the handcrafted jewelry sector.â
WHAT IS GMP?
GMP (Grey Market Premium) is the difference between the IPO price and the grey market price. It is the premium amount paid for the traded IPO shares. It plays an important role in IPOs as it reflects how the IPO would react on the listing day.
A grey market is a place where shares/stocks are traded before being listed officially on the stock exchange.
Kenrik Industries IPO: A Detailed Investment Analysis
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| - | - | - | - |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Kenrik Industries IPO: A Detailed Investment Analysis Details
| Detail | Description |
|---|---|
| IPO Date | April 29, 2025 to May 6, 2025 |
| Listing Date | - |
| Face Value | ₹10 per share |
| Issue Price | ₹25 per share |
| Lot Size | 6,000 Shares |
| Total Issue Size | 34,98,000 shares (aggregating up to ₹8.75 Cr) |
| Fresh Issue | 34,98,000 shares (aggregating up to ₹8.75 Cr) |
| Issue Type | Fixed Price IPO |
| Listing At | BSE SME |
| Share Holding Pre Issue | 89,99,900 shares |
| Share Holding Post Issue | 1,24,97,900 shares |
Kenrik Industries IPO: A Detailed Investment Analysis Timeline
| Detail | Description |
|---|---|
| IPO Open Date | Tue, Apr 29, 2025 |
| IPO Close Date | Tue, May 6, 2025 |
| Tentative Allotment | Wed, May 7, 2025 |
| Initiation of Refunds | Thu, May 8, 2025 |
| Credit of Shares to Demat | Thu, May 8, 2025 |
| Tentative Listing Date | Tentative Listing Date |
| Cut-off time for UPI mandate confirmation | 5 PM on May 6, 2025 |
Kenrik Industries IPO: A Detailed Investment Analysis Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 6000 | ₹1,50,000 |
| Retail (Max) | 1 | 6000 | ₹1,50,000 |
| HNI (Min) | 2 | 12000 | ₹3,00,000 |
Kenrik Industries IPO: A Detailed Investment Analysis Promoter Holding
| Share Holding Pre Issue | Share Holding Post Issue |
|---|---|
| 99.99% | 72.01% |
Competitive Strength:
- 1. Established Market Presence
- 2. Robust Financial Performance
- 3. Commitment to Quality and Certification
- 4. Experienced Management Team
- 5. Strategic Use of IPO Proceeds
Kenrik Industries IPO: A Detailed Investment Analysis Financial Information
| Period Ended | Assets | Revenue | Profit After Tax | Net Worth | Total Borrowing | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31 Oct 2024 | 15.98 | 42.19 | 0.78 | 13.37 | 0.99 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2024 | 15.8 | 70.97 | 1.08 | 12.59 | 0.78 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2023 | 15.59 | 52.04 | 0.47 | 11.5 | 0.57 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2022 | 12.47 | 32.69 | 0.39 | 11.03 | 0.35 | |||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 9.01% |
| ROCE | 10.85% |
| Debt/Equity | 0.06 |
| RoNW | 8.62% |
| PAT Margin | 1.53 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 1.21 | 1.07 |
| P/E (x) | 20.74 | 23.31 |
Objectives of the IPO
Kenrik Industries Limited has outlined specific objectives for the funds raised through its Initial Public Offering (IPO). These objectives are designed to enhance the company's operational capabilities and support its growth trajectory:
- Meeting Working Capital Requirements: The company aims to ensure adequate liquidity to support day-to-day operations, manage inventory, and meet short-term financial obligations.â
- General Corporate Purposes: The funds will be utilized for various corporate activities that may include marketing, business development, and other initiatives to strengthen the company's market position.â
By addressing these areas, Kenrik Industries seeks to bolster its operational efficiency and position itself for sustained growth in the competitive jewelry market.
Conclusion: Evaluating the Investment Potential
Kenrik Industries Limited presents a compelling investment opportunity for those interested in the traditional Indian jewelry sector. The company's strong financial performance, characterized by consistent revenue growth and profitability, underscores its operational efficiency and market acceptance.
However, potential investors should consider the following factors:
- Market Competition: The jewelry industry is highly competitive, with numerous established players. Kenrik Industries' ability to differentiate itself through quality and design will be crucial.â
- Economic Sensitivity: Demand for luxury items like gold jewelry is sensitive to economic cycles. Economic downturns could impact consumer spending on such products.â
- Operational Risks: Dependence on skilled labor for handcrafted products poses operational challenges. Any disruptions in the supply of skilled labor could affect production timelines and costs.â
- Neutral Grey Market Premium (GMP): The absence of a significant GMP suggests limited speculative interest, indicating that the IPO may not offer immediate listing gains.â
In conclusion, while Kenrik Industries offers a strong value proposition with its established market presence and financial stability, investors should weigh the associated risks. A thorough assessment of the company's business model, market conditions, and individual investment goals is recommended before making investment decisions.
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Frequently asked Questions (FAQs )
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What is the issue size of the Kenrik Industries IPO?
The IPO aims to raise ₹8.75 crores through the issuance of 34,98,000 equity shares at ₹25 each.
-
When does the Kenrik Industries IPO open and close?
The IPO opens on April 29, 2025, and closes on May 6, 2025.
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What is the price band for the IPO?
The fixed price is ₹25 per equity share.
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What is the face value of the shares?
The face value is ₹10 per equity share.
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On which exchange will the shares be listed?
The shares will be listed on the BSE SME platform.
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When is the listing date?
The listing is scheduled for May 9, 2025.
-
What is the minimum lot size for the IPO?
The minimum lot size is 6,000 shares.
-
How much is the minimum investment required?
The minimum investment is ₹1,50,000 (6,000 shares × ₹25).
