Ken Enterprises Limited has made waves with its recently launched initial public offering (IPO), attracting significant attention from retail investors, who overweight the subscription rates compared to their institutional counterparts.
The IPO, which opened for public bidding on February 5, 2024, and closed on February 7, 2024, initially reported high levels of interest. It received bids for 1.85 crore shares through approximately 15,413 applications from retail investors alone. Non-institutional investors (NIIs) submitted about 41.11 lakh shares through 884 applications. Notably, qualified institutional buyers (QIBs) had not yet placed any bids, which could suggest varying levels of confidence compared to retail investors.
According to the latest updates from The Economic Times, by closing, the IPO had been subscribed 3.75 times, with retail investors contributing to nearly 6.17 times the shares allocated to their category. This high level of participation is reflective of the strong demand and market interest surrounding Ken Enterprises, particularly highlighting the vibrancy of the retail investment sector.
The IPO aims to raise Rs 83.65 crore, featuring both fresh issuance of 61,99,200 equity shares and the offering of 27 lakh shares by existing shareholders. The shares are priced at Rs 94 each, with the minimum bid set at 1,200 shares, resulting in a minimum investment amount of Rs 1,12,800 for retail investors. This significant capital infusion is earmarked for acquiring new machinery, renovating manufacturing facilities, and meeting working capital requirements.
Ken Enterprises is not just any newcomer to the market; it has over two decades of expertise within the textile manufacturing sector, specializing in producing both greige and finished fabrics. Serving markets domestically and internationally, the company boasts accreditation as ISO 9001:2015 and is recognized for its commitment to quality and innovation. The company collaborates with third-party manufacturers from Ichalkaranji, Maharashtra, which is known as a textile hub.
The financial performance of Ken Enterprises has shown promise. For FY24, the company reported revenues of Rs 409.13 crore, with profits after tax amounting to Rs 8.93 crore. The current fiscal year has continued on this positive note, indicating solid growth prospects as noted by ET Now which specified their EBITDA reaching Rs 1,975.42 lakh.
Investor interest has also been signaled by the latest grey market premium (GMP) for the IPO, which stood at Rs 5 as of the final bidding day. Prior to the offer, GMP figures indicated potential optimism, peaking at Rs 36 before the offering began, declining as the subscription concluded. Continued fluctuations are expected as the trading horizon approaches and speculative activity increases around listing.
The IPO's rout to the Emerge platform on NSE is anticipated, with the allotment of shares expected to finalize on February 10. Successful applicants will see credits of shares to their demat accounts on February 11, with the stocks likely to list on February 12, providing initial trading opportunities for early investors.
Overall, the IPO reflects Ken Enterprises’ strategic ambitions as it navigates through the competitive textile sector, poised for potential growth both domestically and globally. The preparation for this IPO showcases the company’s proactive approach to capitalizing on market conditions, seeking to reinforce its operational capabilities and expand its market reach.
With such dynamics at play, the forthcoming weeks are likely to be telling, not only for Ken Enterprises but for the overall market sentiment surrounding new listings and investor demand trends.