Jewellery retailer Kabra Jewels Limited is preparing for its market debut with an initial public offering (IPO) valued at ₹40 crores, offering 31.25 lakh fresh shares. The subscription window will open on January 15, 2025, and close on January 17, 2025. Investors will have the opportunity to track the company’s progress as it prepares for its listing on the NSE SME platform, set for Wednesday, January 22, 2025.
The IPO offers equity shares with a face value of ₹10 each, priced between ₹121 and ₹128 per share, with a lot size of 1,000 shares. Retail investors can participate with a minimum investment of ₹128,000 for one lot, while High Net-worth Individuals (HNIs) can subscribe with a minimum of ₹256,000 for two lots. Following the subscription period, share allotments will be announced by January 20, 2025, and the company will make its debut on the NSE SME platform on January 22, 2025. As Kabra Jewels embarks on its public market journey, this IPO presents a promising opportunity for investors looking to tap into India’s flourishing jewellery sector.
Kabra Jewels Limited IPO is a fundraise worth ₹40 crores, purely a fresh issue of 31.25 lakh shares, with 290,000 shares reserved for the market maker Giriraj Stock Broking Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from January 15, 2025, to January 17, 2025, providing an opportunity for investors looking to gain a stake in the jewellery segment.
| Kabra Jewels IPO date | January 15, 2025 - January 17, 2025 |
| Price band / Fixed price | ₹121 to ₹128 per share |
| Face value | ₹10 per share |
| Lot size | 1,000 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 31,25,000 shares amounting to ₹40 crores |
| Total issue size | 31,25,000 shares amounting to ₹40 crores |
| Listing at | NSE SME |
| Market maker portion | 290,000 - Giriraj Stock Broking Pvt Ltd |
| Shareholding post-issue | 1,04,85,000 |
| Shareholding pre-issue | 73,60,000 |
The Kabra Jewels Limited IPO opens for subscription on January 15, 2025, and closes on January 17, 2025, with allotment scheduled for January 20, 2025.
| IPO open date | January 15, 2025 (Wednesday) |
| IPO close date | January 17, 2025 (Friday) |
| Basis of allotment | January 20, 2025 (Monday) |
| Initiation of refunds | January 21, 2025 (Tuesday) |
| Credit of shares to Demat account | January 21, 2025 (Tuesday) |
| Listing date on BSE / NSE SME | January 22, 2025 (Wednesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on January 17, 2025 (Friday) |
Kabra Jewels Limited, established in 2010, is a prominent player in the retail jewelry industry, offering a wide array of gold, diamond, and silver ornaments. The company designs, manufactures, and sells various jewelry products, catering to different price points. Its primary offerings include special occasion jewelry, particularly wedding pieces, which are the best-sellers, as well as everyday wear jewelry.
Operating six showrooms in Ahmedabad under various brands, including KK Jewels Bridal and KK Jewels Diamond, Kabra Jewels follows a dual business model. The first model involves procuring ready-made products like chains, rings, and earrings from vendors. The second model focuses on custom jewelry designed in-house or based on customer orders, working with specialized vendors and artisans. As of November 30, 2024, the company employs 121 people and offers an extensive range of jewelry, including rings, earrings, necklaces, bangles, and more.
The company intends to utilize the proceeds from the issue for several purposes, including the repayment of a portion or all of its existing borrowings. Additionally, the funds will be used to meet the company’s working capital requirements and for general corporate purposes.
The Kabra Jewels Limited IPO with the key performance indicators, as of March 31, 2024, reflect the company's financial health with a Return on Equity of 30.25%, Return on Capital Employed (ROCE) at 18.23% and a Debt-to-Equity ratio of 2.90. The Return on Net-Worth (RoNW) stands at 30.25%, and the PAT Margin was 5.73%. The Price to Book Value was 3.03. The company’s market capitalisation is ₹134.21 crore.
| Period Ended | November 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 12,548.47 | 16,424.32 | 12,234.02 | 11,212.54 |
| Assets | 16,942.59 | 14,056.17 | 11,307.33 | 7,401.16 |
| Profit After Tax | 880.89 | 939.64 | 440.58 | 540.46 |
| Net Worth | 3,986.78 | 3,105.88 | 2,166.24 | 1,725.66 |
| Reserves & Surplus | 3,250.78 | 3,059.88 | 2,120.24 | 1,679.66 |
| Total Borrowing | 10,307.08 | 8,996.84 | 6,982.62 | 4,730.26 |
Amount in ₹ lakhs
Kabra Jewels Limited has established itself as a trusted and recognized brand in Ahmedabad, known for its high-quality gold, diamond, and silver jewelry. With a decade-long track record of excellence, the company benefits from a strong customer base and a well-established presence in the market. Its extensive product portfolio caters to various customer needs, from special occasion jewelry like wedding pieces to daily wear options. Additionally, the company ensures product quality through BIS hallmarks and a two-stage quality control process, enhancing customer trust in its offerings.
The company is backed by an experienced management team and promoters with a proven track record in the jewelry retail industry. Strong relationships with artisans ensure exceptional craftsmanship, while ongoing product innovation and design updates keep the offerings fresh and appealing. With multiple showrooms in Ahmedabad and a dedicated workforce, Kabra Jewels enjoys both broad market visibility and a reputation for delivering high-quality products. The brand’s commitment to quality and customer satisfaction has helped establish it as a popular name in the region.
Kabra Jewels faces several challenges, including ongoing legal proceedings involving the company and its promoters. These legal matters, if resolved unfavorably, could adversely affect the company’s business, financial health, and reputation. Additionally, the company’s heavy reliance on working capital for continued growth poses a risk. Difficulty in securing favourable terms for capital could hinder its expansion plans and operational flexibility.
The company’s limited geographic presence, confined to Ahmedabad, exposes it to regional risks such as economic downturns or political instability. This lack of geographic diversification could stifle growth opportunities outside of its current market. Moreover, the company’s dependence on external vendors and artisans for production increases vulnerability to supply chain disruptions. Operational challenges, such as a lack of formal agreements with vendors and workers, could further impact its ability to meet customer demand and maintain timely deliveries, posing a potential threat to profitability and business continuity.
Investing early in Kabra Jewels Limited could offer a unique opportunity to be part of the company’s exciting journey in the growing jewellery market. However, it’s essential for investors to take a comprehensive approach—evaluating key factors such as the company’s operational history, financial stability, market trends, and growth plans. It's also important to align the investment with your personal goals and risk tolerance. Before committing, make sure to carefully review the offer document and, if needed, consult with a professional advisor to make a well-informed decision about this IPO.
What is the Kabra Jewels Limited IPO?
The Kabra Jewels Limited IPO is an NSE SME offering consisting of 31.25 lakh equity shares with a face value of ₹10 per share, aiming to raise ₹40 crore. The price band has been set between ₹121 to ₹128 per share, with a minimum order quantity of 1,000 shares. This IPO will be open for subscription from January 15, 2025, to January 17, 2025. Marwadi Chandarana Intermediaries Brokers Private Limited is the book-running lead manager, Cameo Corporate Services Limited is the registrar while Giriraj Stock Broking Private Limited is the market maker.
When will the Kabra Jewels IPO open?
The Kabra Jewels Limited IPO will open for subscription on January 15, 2025, and will close on January 17, 2025.
When is the Kabra Jewels IPO listing date?
The tentative listing date for the Kabra Jewels Limited IPO is Wednesday, January 22, 2025.
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