Ken Enterprises Limited is set to launch its initial public offering (IPO) from February 5 to February 7, 2025, aiming to raise approximately ₹83.65 crores. The IPO will consist of up to 88,99,200 equity shares with a face value of ₹10 each, priced between ₹94. Specializing in the manufacturing and selling of cotton yarns, the company caters to various sectors within the textile industry. Proceeds from the IPO will be utilized for purchasing new machinery, renovating manufacturing facilities, and meeting working capital requirements.
₹5
₹94
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Expert Opinions
Market sentiment for the Ken Enterprises IPO is cautiously optimistic, reflecting growing investor interest in the textile sector, particularly in sustainable and high-quality fabric production. Ken Enterprises boasts over 20 years of experience in textile manufacturing and is ISO 9001:2015 certified, which enhances its credibility and operational efficiency. However, risks include fluctuations in raw material prices and reliance on a limited number of clients, which could impact revenue stability.
The valuation metrics indicate a return on equity (ROE) of 19.90%, return on capital employed (ROCE) of 51.52%, and a return on net worth (RoNW) also at 19.90%, suggesting robust financial health. From a long-term investment perspective, Ken Enterprises is well-positioned to capitalize on increasing demand for textile products.
Investor Considerations
Investors considering the Ken Enterprises Ltd. IPO should evaluate several key factors. Company performance and fundamentals show a positive trajectory, with revenue growth from ₹332.85 crores in FY2023 to ₹409.13 crores in FY2024, alongside a profit after tax of ₹9.53 crores, indicating effective operational management. The sector outlook is favorable, driven by increasing demand for textiles and sustainable fabric solutions.
The IPO valuation reveals a price-to-earnings (P/E) ratio of approximately 19.34, a price-to-book (P/B) ratio of 3.85, and a debt-to-equity ratio of 0.09, suggesting a strong financial position with low leverage. Growth prospects remain robust as the company plans to expand its production capacity and diversify its product offerings. However, potential risk factors include fluctuations in raw material prices and reliance on limited client contracts. A long-term investment horizon is advisable as Ken Enterprises aims to leverage favorable trends in the textile sector for sustained growth and profitability.
| Date | GMP | Trend |
|---|---|---|
| 11 Feb 2025 11.04 | ₹5 | --- |
| 10 Feb 2025 10.36 | ₹5 | --- |
| 09 Feb 2025 12.32 | ₹5 | --- |
| 08 Feb 2025 20.46 | ₹5 | --- |
| 07 Feb 2025 20.04 | ₹5 | --- |
| 06 Feb 2025 19.59 | ₹5 | Down |
| 05 Feb 2025 11.05 | ₹40 | Up |
| 04 Feb 2025 11.34 | ₹00 | --- |
| 03 Feb 2025 11.22 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Ken Enterprises’ listing performance. While the GMP of ₹5 predicted a positive premium of 5.32% over the issue price, the stock actually listed at a loss of 9.57%. With a substantial prediction error of 14.14%, the GMP not only failed to predict the magnitude but also completely misread the direction of the listing movement, demonstrating its unreliability as a price predictor in this case.
Ken Enterprises IPO Current GMP is ₹5.
Ken Enterprises IPO Expected Returns is 5.32%.
Ken Enterprises IPO estimated listing price is ₹99.