Kenrik Industries has officially launched its IPO for subscription today, April 29, and it will remain open until May 2. The company has set the price for its shares at ₹25 each, with a face value of ₹10. Investors can place bids for a minimum of 6,000 shares, and further bids must also be in multiples of this amount.
About Kenrik Industries
Founded in 2017, Kenrik Industries Limited is a prominent player in the design and distribution of exquisite traditional Indian jewellery. Their stunning collection features:
- Handmade gold jewellery
- Adornments with precious and semi-precious stones, including diamonds, rubies, and cubic zirconia
The company’s diverse range includes:
- Rings
- Earrings
- Armlets
- Pendants
- Nose rings
- Bracelets
- Chains
- Necklaces
- Bangles
- Watches
- Luxury items
- Wedding jewellery
These products are tailored to meet the unique preferences of customers and are crafted at their facility located in Ahmedabad, Gujarat.
Business Model and Market Position
Currently, Kenrik Industries operates on a Business-to-Business (B2B) model, serving clients across various market segments, including high-end, mid-market, and value sectors. The company prioritizes:
- Quality control
- Inventory management
- Business development
All jewellery produced is certified with the BIS Hallmark, ensuring compliance with quality standards.
Competitive Landscape
According to the red herring prospectus (RHP), Kenrik Industries competes with notable peers such as:
- Veerkrupa Jewellers Ltd (P/E: 4.06)
- Motisons Jewellers Ltd (P/E: 38.68)
- Khazanchi Jewellers Ltd (P/E: 28.15)
Subscription Status
As of now, the Kenrik Industries IPO has reached a subscription level of 21% on its first day. The retail segment alone has been subscribed 39%, while the Non-Institutional Investors (NII) portion stands at 2%. With bids for 690,000 shares received against an offer of 3,318,000 shares, the IPO is gaining traction.
IPO Details and Financial Plans
The Kenrik Industries IPO includes a fresh issue of 3,498,000 equity shares, amounting to a total of ₹8.75 crore. Importantly, there is no Offer for Sale (OFS) component in this IPO. The funds raised will be allocated for:
- Working capital requirements
- General corporate expenses
Turnaround Corporate Advisors Private Limited is acting as the lead manager for the IPO, while Skyline Financial Services Private Ltd serves as the registrar. Additionally, Mnm Stock Broking Private Limited is designated as the market maker for this offering.
Current Grey Market Conditions
As per the latest reports, the grey market premium (GMP) for the Kenrik Industries IPO is currently at ₹0, indicating that the shares are trading at their issue price of ₹25, showing no premium or discount in the grey market.
As the IPO progresses, investors are keenly watching the developments, especially with the upcoming Wagons Learning IPO set to open on May 2, with a price band ranging from ₹78 to ₹82 per share.
For those considering participation in the Kenrik Industries IPO, keep an eye on the evolving subscription status and market sentiment.
