Upcoming IPO: Ken Enterprises IPO opens on February 5; issue price band set at ₹94 apiece; check GMP | Stock Market News

Upcoming IPO: Ken Enterprises Ltd IPO will open for subscription on Wednesday, February 5, and close on Friday, February 7. Ken Enterprises IPO price band has been fixed at ₹94 per equity share of face value of ₹10 each. Bids can be made for a minimum of 1,200 equity shares and in multiples of 1,200 equity shares thereafter.

Established in 1998, Ken Enterprises Limited specializes in textile manufacturing. The company produces fabrics for a variety of applications, such as clothing, industrial uses, technical textiles, shirting, and home decor.

They focus on the production of greige fabrics and engage third-party manufacturers for greige fabric production on a job-work basis, primarily located in and around Ichalkaranji, Maharashtra, which is a significant region for fabric weaving, thereby improving their manufacturing capacity. The business model prioritizes quality and customer satisfaction, offering regular and sustainable greige and finished fabrics based on specific orders. Their product assortment includes greige, dyed (with third-party support), printed, and RFD/PFD fabrics.

As per the prospectus, the company’s listed peers are Laxmi Cotspin Ltd, and Pashupati Cotspin Ltd (with a P/E of 113.44).

In FY24, the company generated a revenue of ₹40,220.78 lakhs, an EBITDA of ₹1,975.42 lakhs, and a PAT of ₹892.73 lakhs.

Ken Enterprises IPO details

Ken Enterprises IPO consists of a fresh issue of 61,99,200 equity shares, aggregating to ₹58.27 crore, and the offer for sale (OFS) component includes 27,00,000 shares of ₹10 totalling to ₹25.38 crore.

The use of funds encompasses unidentified acquisitions both domestically and internationally; acquisition of new machinery; capital expenditure for updating both manufacturing sites; requirements for working capital; and general corporate purposes.

“The launch of our IPO is a defining moment in Ken Enterprises Limited’s journey of over two decades in the textile industry. We have worked hard to build a reputation for delivering high-quality, sustainable fabrics to renowned global brands like ZARA, Target, and Primark. Our asset-light business model, coupled with strong partnerships with third-party manufacturers, has enabled us to grow efficiently while maintaining a steadfast focus on quality and customer satisfaction.

The funds raised through this offering will drive growth, improve efficiency, and strengthen our position in the textile industry. Specifically, the proceeds will be utilized for acquisitions in India and abroad, the purchase of new machinery, capital expenditure for the renovation of our manufacturing facilities, and to meet working capital requirements. We are excited about the future and look forward to the opportunities ahead with the continued support of our employees and clients as we begin this exciting new chapter,” said Nikunj Hariprasad Bagdiya, Managing Director & Chairman of Ken Enterprises.

Corporate Makers Capital Limited is the lead manager for the issue, while Skyline Financial Services Private Limited serves as the registrar for the issue.

Ken Enterprises IPO GMP today

Ken Enterprises IPO GMP today or grey market premium was ₹0, which meant shares were trading at their issue price of ₹94 with no premium or discount in the grey market according to investorgain.com

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

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