Ken Enterprises IPO is a fixed price issue valued at ₹83.65 crore. It is a combination of a fresh issue of 61.99 lakh shares aggregating to ₹58.27 crores and an offer for sale of 27.00 lakh shares aggregating to ₹25.38 crores. The IPO opens for subscription today and closes on February 7, 2025. The allotment is expected to be finalised on February 10, 2025, with a tentative listing date of February 12, 2025, on NSE SME.
The IPO price is set at a price band of ₹94 per share. Retail investors need a minimum investment of ₹1,12,800 for one lot of 1,200 shares, while HNI investors must invest in at least two lots, amounting to ₹2,25,600.
Corporate Makers Capital Limited is the book-running lead manager for this issue, while Skyline Financial Services Private Limited serves as the registrar. Giriraj Stock Broking Private Limited is the market maker.
For detailed financial and operational information, investors can refer to the Ken Enterprises IPO DRHP. This IPO presents an opportunity to invest in a growing enterprise listed on the SME platform.
Industry Outlook
- The Indian textile industry, employing over 45 million people, is a vital contributor to the economy, supporting a vast network of manufacturers and exporters. With rising domestic demand and government incentives, the sector is poised for significant expansion in the coming years.
- Government initiatives like the PLI scheme and ATUFS aim to modernise manufacturing and enhance global competitiveness. These schemes focus on increasing investment in man-made fibres (MMF) and technical textiles, driving innovation and efficiency.
Ken Enterprises IPO Objectives
The company proposes to utilise the net proceeds from the IPO for the following objectives:
- Funds will be allocated to expand and upgrade manufacturing facilities, improving efficiency and increasing production output to meet rising market demand.
- A portion of the proceeds will be utilised to repay outstanding borrowings, reducing the company's financial liabilities and enhancing its overall financial health.
- The proceeds will be used to modernise equipment and adopt advanced manufacturing technologies, improving quality, efficiency, and sustainability.
- The company will use part of the funds to meet its day-to-day operational expenses, ensuring smooth business operations and better cash flow management.
About Ken Enterprises Limited
Ken Enterprises Limited, originally incorporated as Ken Textiles Private Limited on June 5, 1998, has undergone multiple transformations, including a name change to Ken Enterprises Private Limited in 2013, before converting into a public limited company on August 5, 2024. The company is headquartered in Ichalkaranji, Maharashtra, and is engaged in textile manufacturing and trading.
Ken Enterprises specialises in the production of high-quality textile products, catering to both domestic and international markets. With a strong emphasis on modernisation and operational efficiency, the company has leveraged government schemes and incentives to enhance its manufacturing capabilities.
With a well-established B2B model, the company supplies its products to large-scale manufacturers and industrial clients, ensuring consistent quality, timely delivery, and competitive pricing. The company follows stringent quality control measures, adhering to industry regulations and certifications to maintain its reputation in the market.
Ken Enterprises is now seeking to expand its operations and strengthen its financial position through an Initial Public Offering (IPO), with a focus on capacity expansion, debt reduction, and infrastructure modernisation.
How To Check the Allotment Status of the Ken Enterprises IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Ken Enterprises IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Ken Enterprises IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Ken Enterprises IPO
Registered office: 9/621 Industrial Estate, Near Kalyan Kendra,
Ichalkaranji, Maharashtra - 416115, India
Phone: +91-0230-2438538
E-mail: cs@kenindia.in
Financial Performance of Ken Enterprises Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from operations (in ₹ lakh) | 40,220.78 | 36,396.26 |
| PAT (in ₹ lakh) | 892.73 | 394.85 |
| EBITDA (in ₹ lakh) | 1,975.42 | 481.85 |
| ROE (%) | 19.90 | 10.99 |
| ROCE (%) | 51.52 | 32.58 |
| Current Ratio (x) | 1.53 | 1.66 |
| EPS | 34.51 | 15.26 |
Know before investing
Strengths
8Ken Enterprises has over 25 years of experience in the textile manufacturing sector, giving it a strong market presence.
The company offers a diverse range of textile products catering to both domestic and international markets.
Its state-of-the-art manufacturing facilities are equipped with modern technology and advanced machinery for high-quality production.
Strong leadership from its promoters, Mr. Nikunj Hariprasad Bagdiya and Mrs. Bina Hariprasad Bagdiya, supports strategic decision-making and business growth.
The Indian textile industry is expected to grow significantly, driven by government incentives, rising exports, and increasing domestic demand.
The IPO proceeds will be used for capacity expansion, facility modernisation, and market reach enhancement, supporting long-term growth.
Government schemes like the Production Linked Incentive (PLI) and the Amended Technology Upgradation Fund Scheme (ATUFS) provide financial support for technology upgrades and business expansion.
Increasing global demand for Indian textile products presents opportunities for Ken Enterprises to strengthen its presence in international markets.
Risks
8The company operates in a highly competitive textile industry, where pricing pressure and market fluctuations can impact profitability.
Dependence on raw material availability and price volatility may affect production costs and margins.
Regulatory changes, including environmental and labour laws, could increase compliance costs and operational challenges.
Any disruptions in the supply chain, including logistics issues or delays in procurement, may impact production schedules and deliveries.
Economic downturns or changes in consumer demand could affect the company’s revenue and growth prospects.
Reliance on key customers for a significant portion of revenue poses a risk if any major client reduces or discontinues orders.
Currency fluctuations and global trade policies may impact export competitiveness and profitability.
The success of the IPO and future growth plans depend on effective fund utilisation and execution of expansion strategies.
Ken Enterprises Limited Peer Details Comparison
| Company Name | EBDITA (in ₹ lakh) | PAT (in ₹ lakh) | Return on Equity (%) | Return on Capital Employed (%) |
|---|---|---|---|---|
| Ken Enterprises Limited | 1,975.42 | 892.73 | 19.90 | 51.52 |
| Laxmi Cotspin Limited | 594.01 | (24.14) | (0.38) | 2.57 |
| Pashupati Cotspin Limited | 3,952.33 | 830.39 | 7.00 | 10.47 |
