Kenrik Industries Limited IPO

Company Profile

Kenrik Industries Limited is an Indian company specializing in the design, manufacturing, and wholesale supply of traditional handmade gold jewellery. Established on February 28, 2017, the company is based in Ahmedabad, Gujarat. Its product portfolio includes rings, earrings, pendants, necklaces, bangles, bracelets, chains, watches, and wedding jewellery, often studded with precious and semi-precious stones like diamonds, rubies, and cubic zirconia .​

Company Overview

Kenrik Industries Limited is an Indian public company specializing in the manufacturing and wholesale supply of traditional handmade gold jewellery. Established on February 28, 2017, the company is headquartered in Ahmedabad, Gujarat.

Product Portfolio

Kenrik Industries Limited specializes in a wide range of traditional handmade gold jewellery, catering to various market segments. Their product offerings are meticulously crafted with an emphasis on quality, creativity, and precision.

1. Gold Jewellery

• Rings: A diverse collection of plain, designer, and studded rings for different occasions.
• Earrings: Available in various styles, from simple studs to elaborate dangling designs.
• Pendants & Necklaces: Elegant pendants and necklaces, perfect for formal and casual wear.
• Bracelets & Bangles: From daily wear to bridal pieces, their bracelets and bangles are designed to complement any outfit.

2. Watches

• High-quality watches with intricate designs that reflect a perfect blend of tradition and modernity.

3. Wedding Jewellery

• A dedicated range of bridal jewellery including necklaces, earrings, bangles, and wedding sets, designed to make every wedding special.

4. Luxury Items

• High-end jewellery pieces crafted with precision, often featuring precious stones like diamonds, rubies, and cubic zirconia.

5. Chains and Armlets

• Beautifully designed gold chains and armlets that appeal to both men and women, available in various lengths and styles.

6. Nose Rings

• Traditional and contemporary nose rings, designed to fit a range of preferences and cultural styles.

Kenrik Industries offers both classic and contemporary styles, ensuring that their jewellery meets the evolving needs of its customers.

All jewellery pieces are crafted to the highest standards of quality, with a focus on craftsmanship, durability, and elegance. The company also provides custom designs, catering to personal preferences and special occasions.

Financial Snapshot (as of March 31, 2024)

Initial Public Offering (IPO) Plans

Kenrik Industries Limited is preparing to launch its Initial Public Offering (IPO) with the goal of raising capital to fund its growth initiatives. The company is offering equity shares to the public as part of its move to be listed on the stock exchange.

IPO Details:

• Issue Open Date: April 29, 2025
• Issue Close Date: May 6, 2025
• Price Band: ₹25 per share (Fixed Price Issue)
• Face Value: ₹10 per share
• Lot Size: 6,000 shares (Minimum investment of ₹1,50,000)
• Total Issue Size: ₹8.75 crore (34,98,000 equity shares)
• Listing Date: May 9, 2025 (BSE SME)

Financial Snapshot (FY 2024):

• Revenue: ₹70.97 crore
• Profit After Tax (PAT): ₹1.08 crore
• Earnings Per Share (EPS): ₹1.21
• Price-to-Earnings (P/E) Ratio: 21.21x
• Return on Net Worth (RoNW): 8.62%
• Debt-to-Equity Ratio: 0.53

Objectives of the IPO:

The proceeds from the IPO will be used for:

• Working Capital Needs: Supporting daily operations and business expansion.
• General Corporate Purposes: To meet business requirements and strengthen the company’s financial position.

Important Dates:

• Basis of Allotment: May 7, 2025
• Refund Initiation: May 8, 2025
• Credit of Shares: May 8, 2025
• Listing Date: May 9, 2025

Other IPO Details:

Market Maker: MNM Stock Broking Pvt. Ltd.

Registrar to the Issue: Skyline Financial Services Pvt. Ltd.

Lead Manager: Turnaround Corporate Advisors Pvt. Ltd.

Key IPO Details:

• IPO Type: SME IPO (Book Built Issue)
• Exchange: NSE EMERGE
• Issue Size: ₹33.99 crore (Fresh Issue + Offer for Sale)
• Fresh Issue: 52.6 lakh equity shares (₹30.5 crore)
• Offer for Sale: 6 lakh equity shares (₹3.48 crore)
• Price Band: ₹55 to ₹58 per share
• Face Value: ₹10 per share
• Lot Size: 2,000 shares
• Minimum Investment: ₹1,16,000
• Retail Quota: 40% of the issue
• IPO Open Date: April 29, 2025
• IPO Close Date: May 2, 2025
• Allotment Finalization: May 5, 2025
• Refunds Initiation: May 6, 2025
• Shares Credited to Demat: May 6, 2025
• Listing Date: May 7, 2025
• Registrar: Bigshare Services Pvt Ltd
• Lead Manager: Unistone Capital Pvt Ltd

Important Dates:

• IPO Open Date: April 29, 2025
• IPO Close Date: May 2, 2025
• Allotment Finalization Date: May 5, 2025
• Refunds Initiation Date: May 6, 2025
• Shares Credited to Demat Accounts: May 6, 2025
• Listing Date: May 7, 2025

IPO Objectives:

Working Capital Requirements:

• The company plans to allocate a portion of the proceeds to support its day-to-day operations. This includes managing inventory, expanding business activities, and ensuring smooth functioning of its operations as it scales.

General Corporate Purposes:

A part of the funds will be used for general corporate needs, including strategic growth initiatives, potential acquisitions, and strengthening the company’s financial position for future endeavors.

Regulatory Compliance Highlights

Prospectus Filing:

• The company has filed the Draft Red Herring Prospectus (DRHP) and the Red Herring Prospectus (RHP), which provide essential information about the company’s operations, financials, and other material facts necessary for potential investors.

Compliance with SEBI Regulations:

• As part of the Securities and Exchange Board of India (SEBI) guidelines for the SME segment, Kenrik Industries is ensuring full compliance in terms of disclosures, corporate governance practices, and other related regulations. This includes meeting all transparency and investor protection norms.

Listing on BSE SME Platform:

The company plans to list its shares on the BSE SME platform, which is specifically designed for small and medium enterprises. The platform ensures a regulated and transparent trading environment for all stakeholders.

Potential Strategic Investments

1. Expansion of Production Facilities

• New Manufacturing Units: Kenrik Industries could invest in expanding its manufacturing capacity by setting up new production units or upgrading existing ones. This would allow the company to meet growing demand and improve efficiency.
• Automation and Technology: Investing in state-of-the-art machinery and technology for jewellery production could enhance precision, reduce costs, and increase production volume.

2. Product Diversification

• Expanding Product Range: The company might consider broadening its product portfolio to include other types of jewellery, such as silver, platinum, or gemstone-based collections, which would appeal to a wider market.
• Custom and Designer Jewellery: Strategic investments in design innovation and personalized jewellery services could attract high-end customers looking for exclusive products.

3. Retail Expansion and Brand Building

• Physical Retail Outlets: Expanding into new geographical regions by opening physical retail stores in high-demand markets would improve visibility and customer accessibility.
• Online Retail Expansion: Developing or enhancing an e-commerce platform could help tap into the growing online shopping trend, enabling the company to reach a broader audience.
• Brand Partnerships: Collaborating with well-known brands, influencers, or designers could elevate Kenrik Industries’ brand image and increase its market appeal.

4. Sustainability and Ethical Sourcing

• Sustainable Jewellery Production: Investments in sustainable practices, such as sourcing conflict-free gemstones and using eco-friendly materials, could attract environmentally conscious consumers.
• Fair Trade and Ethical Sourcing: Strengthening its commitment to ethical sourcing of raw materials and ensuring fair labor practices across its supply chain would enhance the company’s reputation among socially responsible investors and customers.

5. Acquisitions and Mergers

• Acquiring Smaller Competitors: Kenrik Industries could look into acquiring smaller jewellery companies or those in related sectors (such as precious metals or gems) to quickly expand market share and diversify operations.
• Strategic Mergers: Merging with other companies in the jewellery or fashion industries could provide access to new customer bases, innovative designs, or operational synergies.

6. Technology Investments

• AI and Data Analytics: Leveraging artificial intelligence for customer insights, predictive analytics, and inventory management could help optimize operations and provide personalized customer experiences.
• Blockchain for Transparency: Investing in blockchain technology to provide transparent and traceable records of the sourcing and authenticity of precious metals and gemstones could enhance customer trust.

7. Research and Development (R&D)

• Innovative Jewellery Designs: Investing in R&D for cutting-edge designs and techniques could allow Kenrik Industries to stay ahead of industry trends and offer unique products.
• Enhancing Product Quality: Constantly improving the quality and durability of their products through research on materials and crafting techniques would help maintain a competitive edge.

8. International Expansion

Global Market Entry: Investing in international expansion could provide access to new markets with high demand for luxury and handmade jewellery. This could involve setting up sales offices or production facilities in key markets like the US, Europe, and the Middle East.

Future Outlook

Future Outlook for Kenrik Industries Limited

Kenrik Industries Limited has a promising future, driven by its robust market positioning, planned strategic investments, and growth initiatives. The company is poised to expand and strengthen its position in the growing jewellery market.

Market Positioning and Growth Prospects

Kenrik Industries operates in the handmade jewellery sector, offering a range of gold jewellery pieces studded with both precious and semi-precious stones. The company caters to diverse market segments, ranging from premium to value-driven customers. This broad appeal positions the company to capitalize on the increasing demand for traditional and customizable jewellery in India.

In the upcoming years, Kenrik Industries is expected to continue its growth trajectory, building on its past performance, which saw revenues rise significantly in 2024, with a marked increase in profitability.

Strategic Focus Areas

The funds raised from the IPO will be strategically deployed to:

• Working Capital: To support day-to-day operations and facilitate business expansion.
• Corporate Growth: Enabling the company to diversify its product offerings, enhance production facilities, and explore new markets.

These investments will support the company’s objectives of scaling its operations and reinforcing its presence in both domestic and international markets.

Challenges to Consider

While Kenrik Industries is set to benefit from market growth, it must also navigate challenges common to the jewellery sector, such as:

• Price Volatility of Gold: Fluctuating gold prices can impact margins and inventory costs.
• Consumer Preferences: Changing fashion trends and evolving consumer preferences could affect product demand.
• Competitive Market: The jewellery industry is highly competitive, with both organized and unorganized players competing for market share.

Additionally, as an SME, the company must ensure it meets all regulatory and compliance standards, maintaining trust and transparency with investors.

Conclusion

Kenrik Industries Limited is on a strong growth path, supported by its strategic initiatives and solid market position. The company’s IPO represents an opportunity for investors to be part of its expansion and future success. However, potential investors should carefully evaluate the inherent risks in the jewellery industry and the SME segment.