Kenrik Industries’ IPO aims to raise ₹8.75 crores through a fresh issue priced at ₹25 per share, listing on BSE SME. Proceeds will fund working capital (74.97%) and corporate needs (20.57%). With a focus on craftsmanship and a nine-employee operational structure, the company targets growth in India’s jewellery market, leveraging its competitive pricing and inventory efficiency. Kenrik Industries Limited, founded in 2017 and based in Ahmedabad, operates as a B2B manufacturer of traditional handmade gold jewellery, including rings, necklaces, and bridal collections, enhanced with precious stones like diamonds and rubies.
₹00
₹25
₹25.01
Expert Opinions
Kenrik Industries IPO enters the market with cautious optimism, reflecting mixed sentiment due to its niche focus and regional concentration. The company’s strengths lie in its BIS-certified jewelry portfolio, B2B model ensuring steady bulk orders, and diversified offerings across traditional and contemporary segments, aligning with India’s growing jewelry demand. However, risks include geographic dependence on Gujarat (98% revenue), vulnerability to gold price volatility, and customer concentration, with past negative cash flows highlighting liquidity concerns.
Valuation metrics like FY2024 shows a ROE of 9.01% and ROCE of 10.85%. Long-term prospects hinge on expanding beyond Gujarat, managing raw material costs, and improving cash flows. While the IPO offers exposure to India’s jewelry sector, its regional constraints and operational risks warrant a selective approach, making it suitable only for investors with high risk tolerance and a multi-year horizon.
Investor Considerations
Kenrik Industries IPO has demonstrated robust financial performance, with revenue rising by 36.37% from ₹52.04 crore in FY23 to ₹70.97 crore in FY24. The jewelry sector benefits from rising disposable incomes and cultural demand in India, particularly for BIS-certified products. Kenrik’s B2B focus on traditional, bridal, and men’s jewelry aligns with market diversification trends, though regional concentration in Gujarat poses exposure risks.
IPO Valuation for At ₹25 per share, the IPO’s pricing hinges on growth expectations. Despite low margins, the valuation appears modest relative to recent financial improvements, though industry experts advise caution due to scalability concerns. Expansion into new markets and product categories could drive growth, supported by ethical sourcing practices and inventory management. Key risks include geographical concentration, gold price volatility, high inventory costs, and customer concentration. Past negative cash flows and lease-dependent operations further amplify operational risks. Short-term investors might face volatility due to sector-specific risks and thin margins, while long-term success depends on market expansion and client diversification.
| Date | GMP | Trend |
|---|---|---|
| 08 May 2025 10.55 | ₹00 | --- |
| 07 May 2025 11.16 | ₹00 | --- |
| 06 May 2025 11.45 | ₹00 | --- |
| 05 May 2025 18.26 | ₹00 | --- |
| 04 May 2025 12.06 | ₹00 | --- |
| 03 May 2025 15.09 | ₹00 | --- |
| 02 May 2025 11.04 | ₹00 | --- |
| 01 May 2025 11.21 | ₹00 | --- |
| 30 Apr 2025 10.30 | ₹00 | --- |
| 29 Apr 2025 10.14 | ₹00 | --- |
| 28 Apr 2025 20.49 | ₹00 | --- |
FAQs
The Grey Market Premium showed perfect accuracy in predicting Kenrik Industries’ listing performance. The GMP of ₹0 predicted a flat listing at the issue price, and the stock listed with only a negligible gain of 0.04%. With a virtually non-existent prediction error of 0.04%, the GMP perfectly captured the flat listing sentiment, demonstrating exceptional precision in this case.
Kenrik Industries IPO Current GMP is ₹00.
Kenrik Industries IPO Expected Returns is 0.00%.
Kenrik Industries IPO estimated listing price is ₹25.