Kenrik Industries Ltd

About Kenrik Industries Limited IPO

Kenrik Industries Limited IPO is an IPO aggregating to ₹8.745 crores. It consists of a fresh issue of 3,498,000 equity shares aggregating to ₹8.745 crores. The shares will be allotted on Wednesday, May 7, 2025. The credit of shares to the demat account will take place on Thursday, May 8, 2025. The initiation of refunds will also take place on Thursday, May 8, 2025.

Objective of Kenrik Industries Limited IPO

• To meet working capital requirements.

• General corporate expenses.

Industry Outlook

As of January 2022, India’s gold and diamond trade contributed approximately 7% to India’s Gross Domestic Product (GDP). The gems and jewellery sector employs around 50,00,000 people. Based on its potential for growth and value addition, the Government declared the gems and jewellery sector a focus area for export promotion. According to the Gem and Jewellery Export Promotion Council, between April and January 2024, imports of gold bars stood at US$ 236.712 crores, while gold jewellery imports stood at US$ 73.882 crores. India’s gold demand reached 747.50 tonnes in 2023. Total foreign direct investment (FDI) inflows in the gems and jewellery sector during April 2000 to December 2023 stood at US$ 127 crores. The Government of India has permitted 100% FDI in the sector through the automatic route. With the allowance of 100% FDI and improvements in the ease of stablishing businesses in India, foreign investors in the jewellery industry are likely to find favourable conditions to expand their presence within the country. This presents an opportunity for luxury jewellery brands to establish flagship stores locally. Notably, the renowned US luxury jewellery brand Tiffany & Co. recently inaugurated its first store in India. Demand for jewellery is expected to be significantly supported by the recent positive developments in the industry. India’s gems and jewellery industry is expected to reach US$ 10,000 crores by 2027.

Company Information

Kenrik Industries Limited commenced their business in the manufacture, wholesale, and supply of plain and studded gold jewellery and ornaments. They are mainly focused on traditional Indian jewellery. Their products include handmade gold jewellery studded with precious and semi-precious stones such as diamonds, rubies, cubic zirconia, etc. Their product portfolio includes rings, earrings, armlets, pendants, nose rings, bracelets, chains, necklaces, bangles, watches, luxury items, and other wedding jewellery. Their products cater to customers across the high-end, mid-market, and value market segments. The jewellery is made according to customers' specific requirements and is manufactured on a job-work basis at their manufacturing unit situated in Ahmedabad, Gujarat.

Risks of Kenrik Industries Limited IPO

• Heavy reliance on a limited number of suppliers for raw materials.

• Limited geographical reach and presence in only a few markets.

• Fluctuating prices of raw materials and precious metals.

Anchor Investor Information

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Turnaround Corporate Advisors Private Limited

Registrar for the IPO is Skyline Financial Services Private Limited

Business Model

The company earns its revenue through manufacturing, wholesaling, and supplying plain and studded gold jewellery and ornaments.

Company Growth Trajectory

Their total income for the financial years ended March 31, 2022; March 31, 2023; March 31, 2024, and October 31, 2024, was ₹32.59 crores, ₹51.88 crores, ₹70.77 crores, and ₹42.18 crores, respectively. The company's revenue increased at a CAGR of 29.50%. Their restated profit after tax for the financial years ended March 31, 2022; March 31, 2023; March 31, 2024; and October 31, 2024, was ₹0.39 crore, ₹0.47 crore, ₹1.08 crores, and ₹0.78 crore, respectively. The profit after tax increased at a CAGR of 39.77%.

Company Market Position

Leveraging their commitment to delivering superior products with distinctive designs, Kenrik Industries Limited not only competes but thrives in this challenging environment, continually expanding its footprint in the market.

Despite the company’s high standards of quality, it maintains competitive pricing. Its efficient manufacturing processes and strategic sourcing of materials allow it to minimise costs without compromising on craftsmanship. It leverages economies of scale and continuous process improvements to offer its customers the best value for their investment. Its pricing strategy enables it to attract a broad customer base and maintain a strong market position. The company’s commitment to excellence, innovation, and sustainability drives its success and ensures that it continues to deliver value to our customers and stakeholders. The company’s marketing strategy is designed to build on its strong reputation and expand its customer base. It believes that its marketing strategies will enable it to reach new customers and maintain its position as a leading jewellery manufacturer and wholesaler in India.

How To Check Allotment Status of Kenrik Industries Limited IPO?

You can check the allotment status of shares either on the website of the Bomaby Stock Exchange (BSE) or on the website of the registrar Skyline Financial Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Kenrik Industries Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Skyline Financial Services Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Kenrik Industries Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

Click on Submit to check the status

How to Apply for Dr Agarwal’s Health Care Ltd IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI