Ken Enterprises shares started their trading journey with a weak debut on Wednesday, February 12, 2025, listing at ₹85 on the NSE SME platform. This represents a 9.57% discount from the IPO issue price of ₹94, signalling an underwhelming start for investors.
Ken Enterprises IPO Overview
Ken Enterprises' IPO, valued at ₹83.65 crore, was open for subscription from February 5 to February 7. The IPO offered a price of ₹94 per equity share. Despite the weak listing, the IPO had seen decent demand during its subscription period, receiving bids for 3.68 crore shares against 84.54 lakh shares on offer, achieving an overall subscription of 4.36 times.
Subscription Breakdown
- Retail Investors: Subscribed 6.86 times
- Non-Institutional Investors (NII): Subscribed 1.75 times
The demand from retail investors indicated strong interest, but it wasn't enough to sustain momentum into the listing day.
IPO Details and Fund Allocation
The IPO was a combination of:
Fresh Issue: 61.99 lakh shares, aggregating to ₹58.27 crore.
Offer for Sale (OFS): 27 lakh shares, aggregating to ₹25.38 crore.
Retail investors could participate in the IPO with a minimum lot size of 1,200 shares, requiring a minimum investment of ₹1.12 lakh.
Utilisation of Funds
Ken Enterprises plans to allocate the funds from the fresh issue for:
- Potential Acquisitions: Both in India and abroad.
- New Machinery: To enhance production capabilities.
- Capital Expenditure: For renovating manufacturing facilities.
- Working Capital: To meet operational needs.
The company will not receive any proceeds from the OFS.
Corporate and Market Support
Corporate Makers Capital Ltd., the book-running lead manager, managed the IPO, with Skyline Financial Services Private Ltd. serving as the registrar. Giriraj Stock Broking Private Limited acted as the market maker.
About Ken Enterprises
Established in 1998, Ken Enterprises Limited is a prominent player in the textile manufacturing industry. The company specialises in producing greige fabrics, along with dyed, printed, and ready-for-dyeing (RFD) fabrics, catering to diverse applications such as:
- Apparel
- Industrial use
- Home furnishings
- Technical textiles
Manufacturing and Operations
Ken Enterprises operates through third-party manufacturing on a job-work basis, leveraging its presence in Ichalkaranji, Maharashtra—a central fabric weaving hub. This business model allows the company to scale production efficiently while maintaining quality.
Key Takeaways
- Ken Enterprises shares debuted at ₹85, below the issue price of ₹94, reflecting a 9.57% discount.
- The IPO garnered decent demand, with a subscription of 4.36 times, driven by retail investors.
- Funds raised will be used for acquisitions, machinery, renovations, and working capital needs.
- The company operates in the textile sector
Investors will closely monitor the company's performance in the upcoming quarters to evaluate its capability to achieve growth targets and generate value.
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