Kenrik Industries IPO Listing at ₹25.01 with a 0.04% premium

Kenrik Industries Limited is launching its IPO on the BSE SME platform from 29 April to 6 May 2025. The company deals with handmade gold jewellery studded with diamonds, rubies, and cubic zirconia. It seeks to raise ₹8.75 crores from the fixed price issue of 34.98 lakh equity shares. The money will go towards working capital requirements and furthering business growth operations.

Kenrik Industries Listing Details

The IPO price for Kenrik Industries was fixed at ₹25 per share, with a minimum application size of 6,000 shares, resulting in a retail investment threshold of ₹1,50,000. High net-worth individuals were required to apply for a minimum of 2 lots (12,000 shares) amounting to ₹3,00,000.
 

• Listing Price: Kenrik Industries IPO share price opened at ₹25.01 on the BSE SME platform on May 9, 2025, estimated to command an OTC post-issue market capitalisation of ₹31.24 crore. An efficient listing is expected to further boost the investor confidence in India’s burgeoning traditional and designer jewellery sector, and particularly in the SME eco-system.
• Investor Sentiment: Kenrik Industries' IPO has consistently attracted retail investors interested in long-term investments in niche jewellery manufacturing. Valuation notwithstanding, Kenrik has generated interest in the SME investment space on account of its certified product line, B2B setup, and well-planned expansion proposals.

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First-Day Trading Performance Outlook

Kenrik Industries is expected to have a stable debut on the BSE SME platform on May 9, 2025. While its niche in handcrafted jewellery and steady revenues may attract buyers, analysts caution that the post-issue P/E of 23.31 appears high, which could limit strong listing-day gains.

Market Sentiment and Analysis

Kenrik Industries, started in 2017, is slowly making a name in the traditional jewellery business. The company makes handcrafted gold jewellery in Ahmedabad and sells it to other businesses across different price segments. Its products include bangles, rings, necklaces, and wedding jewellery.

• Investor Response: The IPO got a fair response, with overall subscription at 1.19 times. Retail investors showed more interest, as the retail portion was subscribed 2.24 times, which shows trust in the company’s products and steady sales.
• Listing Expectations: On its first day on the BSE SME platform, Kenrik may see a slow but stable listing. Even though the company is growing and works in a popular sector, some investors may wait before buying due to its higher valuation (P/E 23.31) and dependence on third-party manufacturing.

Growth Drivers and Challenges

Kenrik Industries has growth potential due to its wide jewellery range, certified quality, and rising demand in the B2B market. However, it faces challenges like high competition, limited in-house production, and a high valuation that may impact investor confidence and future scalability.

Growth Drivers:

• Diverse Product Range: Offers various types of traditional jewellery like rings, bangles, necklaces, and bridal sets to suit different markets.
• Certified Quality: All products are BIS Hallmarked, which increases trust among buyers.
• B2B Business Model: Supplies to other jewellery businesses across high-end, mid-range, and budget segments.
• Growing Demand: Jewellery demand in India remains strong, especially for weddings and festivals.
   

Challenges:

• High Competition: Operates in a crowded market with many local and established jewellery brands.
• Limited In-House Manufacturing: This depends on the job-work model, which limits full control over production.
• Small Team Size: Has only 9 employees, which could limit scaling up quickly.
• Valuation Concerns: Post-IPO P/E of 23.31 is considered high for an SME, which might affect investor confidence.
   

Utilisation of IPO Proceeds 

The funds raised from the IPO will be used by Kenrik Industries to support its working capital needs and overall business operations.

• Working Capital: ₹6.563 crore will be allocated to meet day-to-day expenses, improve cash flow, and support inventory and operational needs.
• General Corporate Purposes: ₹1.8 crore will be used for branding, business development, and other strategic and administrative activities.
   

Financial Performance of Kenrik Industries 

The company, in the past several years, has always presented steady growth in terms of profitability along with a strong financial position.

• Revenue: ₹42.19 crores as of 31 October 2024, indicating a healthy traction in business on account of demand from main sectors consisting of chemicals, textiles, and plastics.
• Net Profit: ₹0.78 crore as on 31st October 2024, reflecting some degree of profitability and being able to keep operating costs under control under a very competitive market.
• Net Worth: The company had improved its capital management through retained earnings, resulting in an increase of net worth from ₹11.03 crores in FY22 to ₹13.37 crores in October 2024.

Entering the BSE SME platform was a landmark event for Kenrik Industries. Over time, it has been able to make forays into the traditional jewellery market oriented toward handmade items with certification. While Kenrik Industries offers opportunities for stock investment for the retail investor, the market is full of competition with a reliance on job-work and a high price for the shares. Investors need to watch the stock very carefully once it gets quoted because only after that will longer-term investors, who are willing to take a bit more risk, make their investment decision.