Kenrik Industries Limited IPO Snapshot

IPO Dates: April 29 – May 6, 2025
Listing At: BSE SME
Face Value: ₹10 per share
Issue Price: ₹25 per share
Issue Size: 34.98L shares (₹8.75Cr)
Lot Size: 6,000 shares (Min: ₹1.5L)

Key Dates

Tentative Allotment: Wed, May 7, 2025
Refunds Initiation: Thu, May 8, 2025
Demat Credit: Thu, May 8, 2025
Tentative Listing Date: Fri, May 9, 2025

Business Overview

Kenrik Industries Limited is an Ahmedabad-based jewellery manufacturer specializing in

Traditional Indian jewellery (handmade gold pieces with diamonds/rubies/cubic zirconia)

Model serving retailers/wholesalers (98% revenue from Gujarat)

Product range: Bridal sets, rings, earrings, necklaces, luxury items

B2B business model

Certifications: BIS Hallmark for purity assurance

Manufacturing: Job-work basis at 600 sq. Ft Ahmedabad unit (9 employees)

Key Strength

Consistent revenue growth (FY22-FY24 CAGR: 47.5%)

Risks Involved

Geographic Concentration: 98% revenue from Gujarat (high dependency).

No Export Presence: Purely domestic B2B operations.

KIL is engaged in manufacturing and dealing in plain and studded jewelleries. Its major operation is done on job work basis; thus, it depends on third party.

Supplier/Customer Risk: Top 5 customers contribute 42% revenue; top 5 suppliers 44% procurement.

Financial Highlights (₹Cr)

Period	Oct-24	Mar-24	Mar-23
Revenue	42.19	70.97	52.04
PAT	0.78	1.08	0.47
Net Worth	13.37	12.59	11.50
Debt	0.99	0.78	0.57

IPO Objectives

To meet Working Capital Requirements – 65.63 (Millions)

 General Corporate Expenses – 18 (Millions)

Final Verdict

Listing Gains

Market Sentiment: Mixed for SME IPOs

There is hardly any listing gain for Kenrik Industries (May avoid)

Check GMP before bidding

Long-Term

Given Kenrik Industries job-work business model (dependent on third-party orders) is a concern.

There are other companies available with better position for long term.

Long-term investors should monitor scale-up

Disclaimer: This analysis is for informational purposes only. Consult your financial advisor before investing.

                                                                                                                                                       Chandan Pathak

                                                                                                                                                Equity Research Analyst