Kenrik Industries Limited is coming up with an IPO with a fresh issue of 34,98,000 shares worth INR 8.75 crores. The company aims to utilise the funds to meet working capital requirements and general corporate purposes.

Kenrik Industries IPO – Important Dates

Kenrik Industries Limited IPO – Company Profile

Kenrik Industries Limited manufactures and supplies traditional Indian jewellery, including rings, earrings, necklaces, bangles, and wedding ornaments. The company caters to high-end, mid-market, and value segments through a B2B business model.

Kenrik Industries Limited operates a manufacturing unit in Ahmedabad, Gujarat, producing customer-specific designs. They source gold flexibly without fixed supplier contracts, ensuring competitive pricing and quality. 

Through direct client engagement, referrals, and a strong industry network, Kenrik Industries drives business growth, focusing on quality control, inventory management, and customer preference-based products.

Kenrik Industries Ltd IPO Fundamental Analysis 

• Revenue Trend: The revenue increased from ₹5,204.14 lakhs in March 2023 to ₹7,097.46 lakhs in March 2024. The revenue for the 7 months period ended 31 October 2024 is ₹4,218.58 lakhs. 

• Profitability: The profit after tax (PAT) has significantly increased from ₹47.44 lakhs in March 2023 to ₹108.46 lakhs in March 2024, boosting investor confidence. The profit for the 7 months period ended in October 2024 is ₹78.19 lakhs.

• Earnings per Share (EPS): The diluted EPS increased from ₹0.53 in March 2023 to ₹1.21 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the period ending October 2024 is ₹1.49. 

• Return on Net Worth (RoNW): The RoNW has risen from 4.13% to 8.62%, indicating an increase in the company’s ability to generate returns on shareholder equity. 

• Financial Position: Total assets have decreased, indicating a potential contraction in business size. However, the current ratio has increased, suggesting improved liquidity and a stronger ability to meet short-term obligations.

• Inventory Turnover Ratio: There’s a decrease in the Inventory Turnover Ratio, which might indicate slower sales or less efficient inventory management. 

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Kenrik Industries IPO Financial Analysis

Kenrik Industries Limited IPO Peer Comparison

Kenrik Industries Limited and Veerkrupa Jewellers Limited show consistent results, Motisons Jewellers Limited shows strength in P/E ratio, and Khazanchi Jewellers Limited leads in revenue and RoNW. 

Kenrik Industries Ltd IPO Objective

The main objective of Kenrik Industries Limited is to fund working capital requirements and general corporate expenses. 

1. Working Capital Requirement: The company intends to utilise INR 656.25 lakhs from the Net Proceeds to meet working capital requirements, including expansion of their business operations, future growth requirements and other strategic business purposes. 

2. General corporate purposes: The company will deploy INR 180.00 lakhs from the Net Proceeds for general corporate purposes. 

Kenrik Industries IPO Risks And Challenges

Kenrik Industries Limited’s risks include limited regional presence or expansion, any adverse developments affecting the current region and any negative publicity or concerns regarding the purity can impact their business. Past negative cash flows also pose a risk.

• The company’s major business is in Gujarat; any adverse development affecting such a region may have an adverse effect on their business, prospects, financial condition, and results of operations.

• Any customer complaints, negative publicity, or concerns regarding the purity and quality of their gold/silver jewellery, or any lapses in quality control processes, could significantly impact their business, brand reputation, and financial performance.

• The company has incurred negative cash flows in the past. Sustained negative cash flow could negatively impact the growth and business of the company. 

Kenrik Industries Ltd IPO – Industry & Market Potential

India’s gold and diamond trade contributed ~7% to India’s GDP as of January 2022. The gems and jewellery sector employs ~5 million people and has been declared a focus area for export promotion by the Government, with 100% FDI permitted under the automatic route.

India’s gems and jewellery market size stood at US$ 78.50 billion in FY21. Total gems and jewellery exports reached US$ 37.73 billion in FY23, while exports during April 2023 to January 2024 were at US$ 26.35 billion, marking a 16.03% decline year-over-year.

India is the leading exporter of cut and polished diamonds and ranks second in gold, silver, and lab-grown diamond exports. Growth drivers include duty reductions, SEZ incentives, FTAs with UAE and Australia, and increasing gold demand expected to reach 800-900 tonnes in 2024.

Kenrik Industries Limited IPO – Type of Offer

Kenrik Industries Limited is coming up with an IPO with a fresh issue of 34,98,000 shares worth INR 8.75 crores. The company aims to meet working capital requirements and general corporate purposes.

Kenrik Industries IPO Offer Size

The offer size of Kenrik Industries Limited is INR 8.75 crores, consisting of a fresh issue of 34,98,000 shares. The company aims to utilise the funds to meet working capital requirements and general corporate purposes.

Kenrik Industries Limited IPO Allotment Structure

Kenrik Industries Limited’s allotment structure includes categories for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of shares for Market Makers.

• Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than ₹2 lakhs. The company has set aside 16,62,000 shares for RII at a price of ₹25 per share, aggregating to ₹415.50 Lakhs.
  
• Other than retail individual investors: These are applications where the value exceeds ₹2 lakhs. For this category, 15,66,000 shares are set aside at a price of ₹25 per share, aggregating to ₹414.00 Lakhs.
  
• Market Makers Reservation: A certain number of shares are reserved for market makers. The company has reserved 1,80,000 shares for this purpose at a price of ₹25 per share, totaling ₹45.00 Lakhs.

How to apply for the Kenrik Industries IPO?

To apply for the Kenrik Industries Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Kenrik Industries Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Kenrik Industries Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Kenrik Industries IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Kenrik Industries Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Kenrik Industries Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Kenrik Industries Limited IPO:

● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Kenrik Industries Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes. 

Kenrik Industries Ltd IPO Offer Registrar

The registrar for the Kenrik Industries Limited IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Skyline Financial Services Private Limited

D-153 A, 1st Floor, Okhla Industrial Area, 

Phase – I, New Delhi-110020 

Email: [email protected] 

Website: www.skylinerta.com

Kenrik Industries IPO – FAQs