The Kabra Jewels IPO opens for subscription on January 15, 2025, and closes on January 17, 2025. This IPO, which has a total issue size of ₹40 crores, offers investors the chance to be a part of a jewellery company with consistently strong financial and operational performance. This upcoming IPO is one of the important milestones for Kabra Jewels Limited, which has become one of the well-known players in the Indian jewelry market. Founded on July 21, 2010, Kabra Jewels Limited specialises in the manufacturing and trading of gold and diamond jewellery. In the last few years, the company has been able to increase its footprint through a strong retail presence across Gujarat.
Kabra Jewels IPO Date
The Kabra Jewels IPO dates are:
- Opening Date: January 15, 2025
- Closing Date: January 17, 2025
- Finalisation of Allotment: January 20, 2025
- Initiation of refund: January 21, 2025
- Shares credited into demat account: January 21, 2025
- Listing Date: January 22, 2025
- Listing on Exchange: NSE SME
Kabra Jewels IPO Issue Size
The Kabra Jewels IPO seeks to raise ₹40 crores through the issuance of 31.25 lakh equity shares, each at a face value of ₹10 (with only the fresh issue component). The price band for the IPO is ₹121 to ₹128 per equity share, which expresses a premium over the face value. The total size of the issue hints at the company’s future growth and expansion plans through public investment.
The shares will be listed on the NSE SME platform, thus making the issue visible and liquid for investors in the small and medium enterprise segment.
Kabra Jewels IPO Details: Proceeds Utilisation
The net proceeds from the issue are expected to be used for the following:
- Repayment of Certain Borrowings: A portion of the funds raised will go towards servicing certain outstanding loans; thereby, this will strengthen the balance sheet of the company, and the interest cost on that account will be saved as well.
- Working Capital Needs: Working capital enhancement will help Kabra Jewels in proper management of its day-to-day activities and facilitate inventory management and timely supply for its customers.
- General Corporate Objectives: This includes every business development and marketing-related expenses and other strategies designed to achieve an increased market presence through strategic operations.
Kabra Jewels IPO Lot Size
Regarding the size of the orders, investors could place bids of at least 1,000 units, with additional bids going higher in multiples. The table presented below gives some outline of the retail investor and the High-Net-Worth Individual based on the amount of shares he or she purchases and the investments made.
Here is a table depicting the minimum and maximum investment by retail investors and HNI in terms of shares and amount:
Investor Type | Minimum Investment | Maximum Investment |
---|---|---|
Retail (Min) | 1,000 shares | ₹1,28,000 |
Retail (Max) | 1,000 shares | ₹1,28,000 |
HNI (Min) | 2,000 shares | ₹2,56,000 |
Kabra Jewels IPO Reservations Details
The shares in Kabra Jewels IPO will be allocated to different categories of investors as discussed below:
- Qualified Institutional Buyers (QIB): A maximum of 50% of the issue will be reserved for QIBs, including mutual funds, foreign portfolio investors, and other institutional entities.
- Retail Individual Investors (RII): A minimum of 35% of the issue will be set aside for RIIs to enable small investors to participate in the company’s growth story.
- Non-Institutional Investors (NII): A minimum of 15% of the issue has been reserved for NIIs. This includes high net-worth individuals and entities investing in a larger amount.
Kabra Jewels IPO Details: Promoter Information
The Kabra Jewels IPO shareholder quota are:
- Kailash Kabra: Managing Director with 14 years of industry experience.
- Jyothi Kailash Kabra: Executive Director with 12 years of experience.
- Pre-IPO Promoter Holding: 89.12%
- Post-IPO Promoter Holding: 62.55%
Kabra Jewels Limited: Company Overview
Kabra Jewels Limited is situated in Gujarat and operates in the manufacturing and trading of jewelry. The company was known for superior craftsmanship and high quality; it was available under the umbrella brand names, “K.K. Jewels” and “Only Solitaires” and catered to a diverse list of customers while offering a myriad of products that range from great bridal jewelry all the way through to more fashion-forward, cutting-edge daily wear collections.
On two separate platforms, the business model works.
- Direct Procurement: Kabra Jewels gets different designs from the most trusted suppliers. These designs are filtered and passed to the target market, and through this process, it offers an extensive range of products that appeal to every pocket and taste.
- Customisation: As personalisation in the jewelry trade is the present requirement, Kabra Jewels also serves with customised designs and manufacturing activities. In doing so, specific customer requirements could be targeted through bespoke wedding jewelry or uniqueness in pieces.
Kabra Jewels has, through six retail showrooms strategically located in Gujarat, managed to create a strong local presence. All the showrooms have been designed with high customer footfall and have provided an excellent shopping experience to customers. A focus on quality control, design innovation, and customer service helped create long-term customer loyalty, which has further propelled its growth.
Kabra Jewels IPO: Financial Performance
The financial performance of Kabra Jewels Limited can be understood by analysing the growth and profitability of the company.
Particulars | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 | 30 Nov 2024 | % Change (Mar ’22 to Nov ’24) |
---|---|---|---|---|---|
Assets | 7,401.16 | 11,307.33 | 14,056.17 | 16,942.59 | +128.92% |
Revenue | 11,212.54 | 12,234.02 | 16,424.32 | 12,548.47 | +11.91% |
Profit After Tax | 540.46 | 440.58 | 939.64 | 880.89 | +63.00% |
Net Worth | 1,725.66 | 2,166.24 | 3,105.88 | 3,986.78 | +130.91% |
Reserves & Surplus | 1,679.66 | 2,120.24 | 3,059.88 | 3,250.78 | +93.54% |
Total Borrowing | 4,730.26 | 6,982.62 | 8,996.84 | 10,307.08 | +117.91% |
Analysis:
The Kabra Jewels Limited financials from March 2022 to November 2024 reflect the following growth trends:
- Asset Growth: Assets have increased by more than 128.92% from ₹7,401.16 Lakhs to ₹16,942.59 Lakhs, indicating significant investments in the business.
- Revenue Fluctuations: The revenues, though growing at 11.91% on the whole, had some volatility with growth of March 2023 to March 2024, then dipped by November 2024 due to some market or seasonal effect.
- Profitability: Profit After Tax was up by 63.00% which showed improved cost efficiency and profit margins, even in revenue volatility.
- Net Worth Growth: Net worth growth increased by 130.91% backed by a 93.54% increase in reserve that reflected the creation of shareholder value.
- Borrowing Increase: Borrowings increased by 117.91%, which may be debt funding for expansion purposes, so the financial viability needs to be watched closely.
Kabra Jewels IPO Risk Factors
The Kabra Jewels IPO risk factors that would interest investors include the risks involved in its investment;
- High Competition in the Market: The jewellery market is highly dominated by companies like Titan and PC Jeweller, which makes it difficult for small companies to capture a considerable market share.
- Economic Sensitivity: Jewelry sales are closely associated with consumer disposable income and, generally, economic conditions. Reduced consumer spending or any form of economic downturn would affect the revenues of the company.
- Gold Price Fluctuations: Being one of the foundational raw materials, fluctuations in gold prices directly relate to instant margins, pricing, and inventory valuation for the company.
- Dependency on fashion trends: The jewellery business depends much on knowing and responding to consumer preferences and directions of fashion. Failure to innovate and find direction in the market may be hurtful to its sales.
- SME Listing Risks: Due to listing on the SME platform, trading volumes are usually low and liquidity is low in comparison with that of the mainboard listings which may have some impacts on shareholder return.
Kabra Jewels IPO Details: Contact Information
Registered Office Contact Details
- Address: 6, Ground Floor, Iscon Center, Near Tanishq, Shivranjani Cross Road, Satellite, Ahmedabad – 380015, Gujarat, India.
- Contact Person: Hiral Ishan Dave (Company Secretary and Compliance Officer)
- Email: cs.kkjewels@gmail.com
- Phone: +91 93288 71207
- Website: https://kkjewels.org
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Frequently Asked Questions – FAQs
1. Kabra Jewels IPO Date?
Kabra Jewels IPO opens on January 15, 2025, and closes on January 17, 2025.
2. Kabra Jewels IPO Lot Size?
The minimum lot size is 1,000 shares with an investment of at least ₹1,28,000.
3. On which the Kabra Jewels IPO shall get listed?
The listing would be on NSE SME.
References:
https://www.sebi.gov.in/filings/public-issues/jan-2025/kabra-jewels-limited_90667.html