Kabra Jewels IPO listing: Shares hit 5% upper circuit after opening at 90% premium on NSE SME

Jewellery retailer Kabra Jewels Ltd made a stellar debut on the NSE SME platform on Wednesday, January 22, with its shares listing at a premium of 90%.

Shares of the Ahmedabad-based jewellery retailer company were listed at ₹243.2 apiece on the NSE Emerge platform against the issue price of ₹128 per share, reflecting a premium of 90%.

Soon after listing, the stock rallied as much as 5% to hit the upper circuit limit at ₹243.2 apiece on the NSE.

Within minutes after listing, as many as 11.42 lakh shares were traded on the stock exchange, taking the total trading value to ₹28.5 crore. The company’s market capitalisation stood at ₹265.85 crore.

At the listing price of ₹243.2 per share, the value of a single lot of shares bagged by investors in the IPO share allotment reached ₹2,43,200 (₹243.2 x 1,000). The IPO investors would have made listing gains of ₹1,15,200 per lot size against the minimum investment of ₹1,28,000 (₹128 x 1,000).

Kabra Jewels raises ₹40 crore through SME IPO

The Ahmedabad-based jeweller raised ₹40 crore through its initial public offering of 31.25 lakh shares. The issue was open for subscription from January 15 to January 17 on the NSE. The price band was fixed at ₹121 to ₹128 per share.

Driven by strong demand from non-institutional and retail investors, the public offer was booked more than 356 times. Applications for more than 70.73 crore shares were received against 19.86 lakh shares on offer. The issue generated demand for ₹9,050 crore worth shares against the issue size of ₹40 crore.

Among investor categories, the Non-Institutional Investors’ (NIIs) portion was booked 557 times, while the retail portion was booked over 385 times. The Qualified Institutional Buyers’ (QIBs) quota was booked 154 times.

The jewellery retailer owns and operates six outlets under the brand name of ‘KK Jewels’. The outlets are under the names of KK Jewels Diamond, KK Jewels Bridal, KK Jewels Gold, KK Jewels Silver, KK Jewels - Atarashi and KK Jewels - Silver Studio. It has three offices and an exhibition centre in Ahmedabad.

The company offers gold and silver coins, jewellery items of gold, diamond, and silver, utensils and other artefacts.

The company has proposed to utilise IPO funds mainly for repayment of its outstanding dues, in part or full and fund working capital requirements.

Kabra Jewels’ total outstanding secured fund-based borrowings as of November 30, 2024, was ₹43.97 crore and unsecured debt of ₹59.09 crore. It will utilise ₹10 crore for debt repayment. A sum of ₹22 crore will be utilised for meeting working capital requirements.

The jewellery retailer reported revenue from operations of ₹125.28 crore for the first eight months of 2024-25 (April-November). Its profit after tax was ₹8.8 crore in the period under review.

The company reported a net profit of ₹9.4 crore in the financial year ending March 31, 2024, over a revenue of ₹164.24 crore.