Ken Enterprises Ltd an established name in the textile sector will soon make its market debut with the help of an Initial Public Offering. The company has been in textile manufacturing for quite some time and has steadily improved in recent years. This blog explores Ken Enterprises, financials, sector outlook, and IPO details.
Company Overview
Ken Enterprises Ltd was founded in 1998 as a textile company. Its specialty is in fabric manufacturing. The company has developed from a small operation to a known entity in the marketplace. Ken Enterprises has its central setup in Maharashtra. It has a solid distribution network that caters to both domestic and international markets.
Promoters and Their Experience
The promoters are Mr. Nikunj Hariprasad Bagdiya and Mrs. Bina Hariprasad Bagdiya, who have extensive experience in textile manufacturing and managing the business. Under their leadership, Ken Enterprises has expanded its operations and strengthened its position in the market.
Sector Overview
The Indian textile industry is one of the largest in the world, providing a significant source of employment and export earnings. The sector is also likely to see good growth on account of government initiatives like the Production Linked Incentive scheme and rising demand for quality textiles. Ken Enterprises, with its established manufacturing capabilities, is well-positioned to benefit from these favorable industry trends.
India’s textile industry is one of the oldest industries in the country, which has remained deeply rooted in the country’s heritage. It contributes about 2% to the country’s GDP and stands for 7% of industrial output. With 4% of the international textile and apparel trade, the Indian textile sector remains a very important industry for the export economy of India. Out of the total export basket, textiles have contributed 10.33% in the period 2021-22.
The Indian textile and apparel market size was estimated at approximately USD 165 billion in 2023, where the domestic market accounted for USD 125 billion and exports were valued at USD 40 billion. This growth is driven by increasing domestic demand, government incentives, and the rising trend of sustainable and ethical textiles, which makes India a significant player in the global textile industry.
Objectives of the IPO
The amount raised through the IPO would be used for.
- Unidentified Acquisitions in India and abroad – ₹6.25 Cr
- Purchase of New Machinery – ₹4.53 Cr
- Capital Expenditure for renovation of both manufacturing facilities
- To meet working capital requirements – ₹25.00 Cr
- General Corporate Expenses
Financial Performance Overview
Ken Enterprises has shown consistent revenue growth, with a notable increase in profitability and margins in the last three years. Below is a breakdown of the financial performance:
Financials (₹ in Crores)
| Particulars | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|
| Revenue from Operations | ₹402.21 Cr | ₹363.96 Cr | ₹354.80 Cr |
| EBITDA | ₹19.75 Cr | ₹4.82 Cr | ₹9.50 Cr |
| Profit After Tax (PAT) | ₹8.93 Cr | ₹3.95 Cr | ₹2.36 Cr |
| Net Worth | ₹44.85 Cr | ₹35.93 Cr | ₹31.98 Cr |
Key Financial Ratios
| Ratios | FY 2024 | FY 2023 | FY 2022 |
| EBITDA Margin (%) | 4.91% | 1.32% | 2.68% |
| PAT Margin (%) | 2.22% | 1.08% | 0.67% |
| Return on Net Worth (RoNW) | 19.90% | 10.99% | 7.39% |
| P/E Ratio (Basic & Diluted EPS) | 34.51 | – | – |
| P/E Ratio (Weighted Average EPS) | 23.87 | – | – |
| Earnings Per Share (EPS) | ₹34.51 | ₹15.26 | ₹9.14 |
Peer Comparison
Ken Enterprises operates in a competitive space. Below is a peer comparison based on available data:
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | RoNW (%) |
| Ken Enterprises Ltd | 402.21 | 8.93 | 19.90% |
| Laxmi Cotspin Limited | 144.02 | -0.14 | -0.38% |
| Pashupati Cotspin Limited | 653.87 | 5.43 | 7.00% |
IPO Details
| IPO Name | Ken Enterprises |
| IPO Start Date | February 5, 2025 |
| IPO End Date | February 7, 2025 |
| Price Band | ₹ 94 per share |
| Lot Size | 1200 shares per lot |
| Issue Type | Fresh Issue & OFS |
| Issue Size | 83.65 crores |
| Basis of Allotment | February 10, 2025 |
| Listing Date | February 12, 2025 |
| Retail Investors Min lot & Amount | 1 lot & ₹1,12,800 |
| Retail Investors Max lot & Amount | 1 lot & ₹1,12,800 |
| HNI Min lot & Amount | 2 lots & ₹2,25,600 |
Conclusion – Ken Enterprises IPO
Ken Enterprises Ltd’s IPO provides an investment opportunity for those looking to participate in a growing textile company with a solid financial profile and defined growth strategy. The company has exhibited consistent revenue growth, improvement in margins, and efficient use of capital. However, investors need to consider all the risks involved before making an investment decision.
With a solid business model and expansion plans in place, Ken Enterprises is well-positioned for future growth in the textile industry. Whether you are a retail investor or an institutional participant, this IPO is worth a detailed evaluation!
Frequently Asked Questions (FAQs)
1. What is the start and end date for Ken Enterprises IPO?
The IPO will open on February 5, 2025, and close on February 7, 2025.
2. What is the price band of the Ken Enterprises IPO?
The price is set at ₹94 per share.
3. What is the minimum and maximum investment for retail investors in Ken Enterprises IPO?
Retail investors can apply for a minimum of 1 lot (₹1,12,800) and a maximum of 1 lot (₹1,12,800).
4. What is the lot size for Ken Enterprises IPO?
The lot size is 1200 shares per lot.
5. When will the IPO allotment be finalized for Ken Enterprises IPO?
The basis of allotment will be finalized on February 10, 2025.
6. When is the listing date for Ken Enterprises IPO?
The IPO is expected to be listed on February 12, 2025.
7. What is the minimum investment amount for High Net-worth Individuals (HNI) for Ken Enterprises IPO?
HNIs need to apply for at least 2 lots, which amounts to ₹2,25,600.
8. What is the total issue size of Ken Enterprises IPO?
The total issue size of Ken Enterprises IPO is ₹83.65 crores.
9. What is the GMP of Ken Enterprises IPO?
The GMP of Ken Enterprises IPO is Rs 30
10. What is the subscription status of Ken Enterprises IPO?
The IPO has been subscribed 2.01 times on its first day of subscription. In the retail category, the IPO has been subscribed 3.25 times, 0 times in QIB, and 0.77 times in the NII category.
11. How to Check the allotment status of Ken Enterprises IPO?
The IPO allotment status of Ken Enterprises IPO can be checked on the official registrar website Skyline Financial Services Private Ltd.
Related Information
For current & upcoming IPOs, refer to the following link.