Kabra Jewels IPO : GMP, Dates, Price & Key Details

Kabra Jewels IPO-Complete Overview

Kabra Jewels IPO under the SME IPO category is a book-built issue of Rs.40 Cr (31.25 lac Shares) by Kabra Jewels Limited established in 2010. The company is engaged in the retail jewelry business and offers a diverse collection of gold, diamond, and silver ornaments. 

The company’s product range extends to a gamut of gold, studded, and a variety of other jewelry items, including wedding jewelry, which is their top-selling category, for special occasions, as well as ordinary wear. 

The firm has a total of 6 Showrooms in Ahmedabad under the various brands of KK Jewels Bridal, KK Jewels Diamond, KK Jewels Silver, KK Jewels Gold, KK Jewels - Atarashi, KK Jewels - Silver Studio, 3 offices, and one exhibition hall. 

Business Model: 

Model 1: Where the company procures goods directly from vendors (General Designs) such as Chains, Rings, Pendants, and Ear Rings. 

Model 2: Where the company customizes jewelry according to client orders or its own specific in-house designs. It appoints vendors or karigars with expertise in jewelry design and manufacturing like necklaces, Mang tikka, earrings, and Bracelets.

Products: Earrings, Pendants, Rings, Bracelets, Nose, Chains, Necklaces, and Bangles.

Kabra Jewels IPO Overview

This Kabra Jewels IPO date is 15 January, and its ‘initial public offering’ will end on 17 January 2025. 

This Rs.40 crore new SME IPO comprises a wholly fresh issue of 31.25 lac Shares.

This upcoming IPO date is on 15 Jan 2025. The Kabra Jewels IPO Price is Rs.121 to Rs.128 for each Share. 

The expected IPO listing date is 22 Jan 2025, and the listing at NSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

(Amount in Lac)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown  

(Amount in lac)

(Source: RHP)

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Partial or complete repayment of some loans that the business has taken out.

• To fulfill the criteria for working capital.

• General Corporate purposes.

 

Peers of Kabra Jewels Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

Evaluation

The Kabra IPO share price is Rs.121 to Rs.128 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 March 2024 with an EPS of Rs.67.93 from the last year, the resulting P/E ratio is 1.88x.

Considering the weighted EPS of Rs.51.09 for the last three years, the P/E ratio is 2.50x.

IPO's Strengths

• A popular brand.

• A strong offering’s quality.

• Depicted promoters have proven managerial experience.

• Proven long-term ties with the craftsmen.

• Product line extension and change in the design. 

• The management team is experienced and there is a competent and enthusiastic workforce. 

 IPO’s Weaknesses

• Lawsuits: The company and its promoters in addition to the directors are faced with multiple lawsuits. Such cases may either have an inherent potential of tarnishing reputation or improving it, or have a financial or operational effect on the company’s business.

• Reliance on Few Suppliers: The Company is quite dependent on limited suppliers. Any disruption in the supply would significantly impact the company’s business operations.

• Geographical Dominance: Ahmedabad, Gujarat is the only location in which the company conducts its business. The said geographical area’s economic slowdown, drastic changes in rules, and other political violence can result in an adverse impact on the company’s business and economic condition.

• Competitive Market: The jewelry market is competitive with organized and unqualified players alongside already established large competitors. This kind of competition is particularly challenging concerning market share and profitability.

Kabra Jewels IPO GMP Today

Kabra Jewels IPO GMP has not started yet as of 09 January 2025.

IPO Timetable (Tentative)

The IPO opening date is January 15, with allotment on January 20, refund initiation on January 21, and listing on January 22, 2025.

Kabra Jewels IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 31,25,000 Shares (Rs.40 Cr).

Kabra Jewels Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.1,28,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.2,56,000.

 

IPO Reservation (% of Net Issue)

Promoters And Management of Kabra Jewels Ltd.

• Kailash Kabra

• Jyothi Kailash Kabra
  
  

IPO Lead Managers

Marwadi Chandarana Intermediaries Brokers Pvt. Ltd.

Dividend Policy

The company has not paid any dividends in the last three FYs.

Conclusion

Kabra Jewels Limited is a reputed brand name in the world of jewelry with a vast array of products in its portfolio and a strong presence in Ahmedabad, Gujarat. The upcoming Kabra Jewels IPO allows the investor to be part of the growth story of a company. Financially the company seems to be on a growth curve and has the potential to grow in the market; however, there are risks such as pending litigation, dependence on limited suppliers, and concentrated geography.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company  Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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