Overview of Kabra Jewels Ltd. IPO

The details of the upcoming IPO are as follows:

Objectives Of The Kabra Jewels Ltd IPO

The main objective of the IPO is to raise Rs. 40 cr with the sale of 31,25,000 fresh equity shares of face value of Rs. 10/- . The amounts will  be utilized for the repayment of certain borrowings availed by the company, meet capital working requirements and expand its corporate strategic initiatives.

 Also Learn: What is an IPO?

Financial Performance of Kabra Jewels Ltd IPO

The table below summarises the financial performance of Kabra Jewels Ltd

Amount is  in ₹ Lakhs

Industry Outlook

• The company is in the gems and jewellery business which is considered as one of the most important sectors which contributes about 7% GDP to the Indian economy. This industry is projected to grow to $100 billion by 2027 in India. The industry is also one of the biggest employment generating sectors, employing over 5 million people in different part of country.
• This company manufactures and designs artifacts and jewellery of  gold, silver, diamond and precious stones which relies heavily on foreign exchange earnings contributing to about 15% in exports. The Government of India has set a target to US$ 2 trillion by 2030 in exports so this sector is also going to get various initiatives that will further improve the business prospectus.

Strengths and Risks of the Kabra Jewels Ltd iPO

The company Kabra Jewels has strengths that should serve as an incentive for potential investors. Some of these include;

• The company has 6 six operative showrooms in Ahmadabad, India under the brand names KK Jewels Bridal, KK Jewels Diamond, KK Jewels Silver, KK Jewels Gold, KK Jewels - Atarashi and KK Jewels - Silver Studio, 3 offices and 1 exhibition centre. Which shows its good presence and varieties of jewels it can offer to its growing clients.
• The company provides hallmarked quality and purity jewels with robust and advanced technologically offering a wide varieties of products..
• The company has shown primary growth in revenue over the last 3 fiscal years.
• The company has garnered quite a few recognitions in the past few years, some notable awards conferred to the company are, “Prominent Jeweller - 2023 in Finesh & Largest Bridal Jewellery Collection” by Divya Bhaskar Group and “The Best Bridal Jewellery in Gujarat – 2022” by Divya Bhaskar Group.

Weakness

The major weaknesses that might be attributed to Kabra Jewels Ltd include:

• The Jewelry business is increasing with many big players in this filed of business. The company has to be consistent and maintain its quality and purity in its products in order to show more growth in this line of industry.
• The Company, with respect to operation is only concentrated in Ahmadabad, India with all of its 6 showrooms and offices located here and the company’s revenue is majorly generated from the these retail stores  any disruptions in these regions can result to effect the business, financial condition and results of operations.
• One of the company’s showroom KK Jewels – Gandhidham has not been operative since April 1, 2024
• The company is in a high debt ratio which may affect the financial flexibility if any financial crisis comes in its way.
• There are certain outstanding legal proceedings which the Company, Subsidiaries, Promoters, and Directors are involved in, This could also have an adverse effect on the business, financial condition and results of operations.

Kabra Jewels IPO Subscription Details

With a lot size of 1000 equity shares, The pricing range for the IPO is set between Rs. 121/ - Rs. 128 per-share, The bidding begins from January 15, 2025 and ends on January 17, 2025. The IPO can be applied as a regular and invest up-to Rs. 2,00,000/- and can also be applied as a High Network Individual and invest from Rs. 2,00,000/-  upto Rs. 5,00,000/-. The IPO is set to list on NSE (SME).

Expert Recommendations

The IPO has a high risk factor as it is only operative from one location i.e Ahmadabad, India and the company is at debt and is aiming to raise funds through this IPO but the company’s performance in the past years has shown positive results with profits which in the long run can be fruitful considering the growth of the the industry in India in the coming years. Prospective Investors should carefully compare the aspects given in the IPO draft before investing. All the information must be well read, analysed before making any investments.

Key Takeawys

The company with the help of this IPO is looking to implement strategic initiatives by utilizing the proceeds of this issue in repayment of certain borrowings, meeting working capital requirements and to expand the company's operation further. The gems and jewel industry is also set to expand further which is a positive sign for the company growth.

FAQ:

1. When is the listing date of Kabra Jewels IPO?

The Listing date of the Kabra Jewels Small and Medium enterprises (SME)(IPO) begins from January 15, 2025 and ends on January 17, 2025. 

2. Is the IPO of Company Name fairly Priced?

Offering a lot size of 1000 equity shares, The IPO price range is between Rs. 121 - Rs. 128 which seems to be comfortably priced.

3. Where else we can get more information about the Kabra Jewels IPO?

You can find more information about the Kabra Jewels IPO, at

1. IBEF on Gems & Jewellery

2. https://kkjewels.org/investors/

3. RHP Of Kabra Jewels