Ken Enterprises shares hit 5% lower circuit after listing at 9.5% discount to the IPO price on NSE SME

Ken Enterprises Ltd shares opened at a loss of more than 9% on the NSE SME platform on Wednesday, February 12, marking a weak trading debut.

The company's shares opened at ₹85 apiece on the NSE against the issue price of ₹94 per piece, reflecting a loss of 9.57% over the issue price.

More than 4 lakh equity shares changed hands on the bourse. The total turnover stood at ₹3.71 crore. The market valuation of the company reached ₹198 crore.

After listing at a discount, the stock declined as much as 5% to hit the lower circuit at ₹80.75 per share due to increased selling and weak broader markets.

At the listing price of ₹85 per share, the value of a single lot of equity shares bagged by IPO investors stood at ₹1,02,000 (₹85 x 1,200). The IPO investors faced a potential loss of ₹10,800 per lot as the minimum investment in the IPO for a single lot size was ₹1,12,800 (₹94 x 1,200).

Textile manufacturer Ken Enterprises last week raised ₹83.65 crore through its initial public offer. The issue was open for subscription from February 5 to February 7.

The SME public offer closed the IPO with an overall subscription of 4.35 times as bids for more than 3.68 crore shares were received compared to 84.54 lakh shares on offer.

Retail investors placed bids for more than 2.9 crore equity shares compared to 42.27 lakh shares on offer, leading to a subscription of 6.86 times. Non-institutional investors (NIIs) applied for 73.54 lakh shares against 42.27 lakh shares on offer, overbooking the quota 1.73 times. Qualified Institutional Buyers (QIBs) placed bids for 4.69 lakh shares.

Ken Enterprises is a textile manufacturer and design-to-delivery solutions provider for greige and finished fabrics. It serves both domestic and international markets and exports products to more than 10 countries. Global brands such as Target, ZARA, and Primark are among its customers. The company owns two manufacturing units in Ichalkaranji, Maharashtra.

Ken Enterprises has proposed to utilise IPO funds for meeting working capital needs, buying new machinery and meeting capex for the renovation of both manufacturing facilities as well as funding unidentified acquisitions in India and abroad.

Ken Enterprises posted a profit after tax of ₹9.52 crore for the first eight months of 2024-25 (April-November) over a revenue of ₹332.85 crore.

Its profit after tax was ₹8.92 crore in FY 2023-24 compared to ₹3.94 crore in FY 2022-23. The company’s total income increased to ₹409.12 crore in FY24 compared to ₹375.22 crore in FY23.