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Ken Enterprises Ltd IPO

Status: Closed

Overview

IPO date
05 Feb 2025 to 07 Feb 2025
Face value
₹ 10 per share
Price
₹ 94 per share
Issue Size
8,899,200 shares
(aggregating up to ₹ 83.65 Cr)
Allotment Date
10 Feb 2025
Listing at
NSE
Issue type
Fixed Price - SME
Sector
Textiles

Objectives of Ken Enterprises Ltd IPO

Initial public issue of up to 88,99,200 equity shares of face value of Rs. 10/- each of Ken Enterprises Limited for cash at a issue price of Rs. 94/- per equity share (including a premium of Rs. 84/- per equity share) ("Issue Price") aggregating up to Rs. 83.65 crores comprising of fresh issue of up to 61,99,200 equity shares aggregating to Rs. 58.28 crores ("Fresh Issue") and an offer for sale of upto 27,00,000 equity shares by Nikunj Hariprasad Bagdyia and Bina Hariprasad Bagdiya ("Selling Shareholders") aggregating to Rs. 25.37 crores ("Offer for Sale") ("The Issue") and upto 4,45,200 equity shares at an issue price of Rs. 94 per share aggregating to Rs. 4.18 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of up to 84,54,000 equity shares of face value of Rs. 10/- each at an issue price of Rs. 94 per equity share aggregating to Rs. 79.47 croress ("Net Issue"). The issue and the net issue will constitute 36.23% and 34.41% of the post-issue paid-up equity share capital of the company. The face value of the equity shares is Rs. 10/- each and the issue price is 9.4 times of the face value

Ken Enterprises Ltd IPO Strategy

  • Blending Organic Innovation and Brownfield Excellence.
  • Approach global brands.
  • Focus on consistently meeting quality standards.
  • Maintaining cordial relationship with our Suppliers, Customer and employees.
  • Expanding our geographical reach.
  • Product Portfolio.

About Ken Enterprises Ltd

Ken Enterprises Limited was originally incorporated as 'Ken Textiles Private Limited' on June 05, 1998, vide Certification of Incorporation issued by the Registrar of Companies, Pune. Further, the name of Company was changed from 'Ken Textiles Private limited' to Shri Ken Enterprise Private limited, dated March 06, 2004 and again changed from 'Shri Ken Enterprises Private Limited' to 'Ken Enterprise Private Limited', on June 28, 2013, issued by the Registrar of Companies, RoC- Pune. Thereafter, the status of the Company converted into a Public Limited , and the name of the Company was changed from 'Ken Enterprises Private Limited' to 'Ken Enterprises Private Limited' and a fresh Certificate of Incorporation dated August 05, 2024 was issued to the Company by the RoC, Pune. The Company started manufacturing facility for weaving of fabrics in year 2004. It opened Factory II which was fitted with 12 imported Sulzer Projectile machinery in 2010. The production capacity was expanded by adding Picanol Air Jet weaving machines at Factory I in 2013. The Company started with production of fabric exports in 2014, started finished fabric exports to Latin America and Thailand in 2021. Ken Enterprises Limited is a a distinguished textile company, which operates into Fabric Business and Apparel Division, providing end-to-end solutions. It is engaged in manufacturing of regular and sustainable greige and finished fabrics for domestic and international markets. It works two manufacturing units and they are both located at Shirol Taluka in the Ichalkaranji District of Maharashtra. The Company is an approved vendors for leading international brands such as ZARA (Inditex Group), Target and Primark. It provide diverse fabrics such as structures, seer suckers, double layer, three layer, four layer, chambrays, fashion fabrics with metallic yarns etc, catering to various applications such as women fashion wear, men and kids shirts, home textiles, embroidery, light canvas etc amongst others. The ISO 9001:2015 certified company further make exports to 20+ countries, holds certifications like GOTS and BCI, and embraces sustainability. The Company is planning an IPO upto 89,00,000 Equity Shares comprising a Fresh Issue of 62,00,000 Equity Shares and 27,00,000 Equity Shares through Offer for Sale.

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T&C*

Strengths vs Risks of Ken Enterprises Ltd

Know the pros & cons

Strengths

  • arrowDiversified range of services offered.
  • arrowStrong Client base.
  • arrowExperience of our Promoter and core management team.
  • arrowQuality Assurance.
  • arrowCost competitiveness and time bound delivery.

Risks

  • arrowThe company is dependent on third party manufacturers to manufacture its products on job work basis. The company's business is therefore dependent to a large extent on expected performance and operation of such manufacturers.
  • arrowThere have been certain instances of non- compliances in respect of ROC filing or payments. Any penalty or action taken by any regulatory authorities in future for non-compliance with provisions of all applicable law and other law could impact on the financial position of the Company to that extent. Further, few form are not available in the company records.
  • arrow"Its logo and Trade Mark "ken" and "KEN" are not registered yet with Registrar of Trademark; any infringement of its brand name or failures to get it registered may adversely affect the company business.
  • arrowThe company has experienced negative cash flows in the past and may continue to do so in the future and the same may adversely affect its cash flow requirements, which in turn may adversely affect its ability to operate the company business and implement the company growth plans, thereby affecting its financial condition.
  • arrowIts operations are geographically located in one area i.e. Ichalkaranji, Kolhapur, Maharashtra and any localized social unrest, natural calamities, etc. could have material adverse effect on business and financial operations.
  • arrowThe company business is vulnerable to variations in demand and changes in consumer preferences, which could have an adverse effect on its business, results of operations and financial condition.
  • arrowIf the company is unable to procure raw material of the required quality and quantity, at competitive prices and in absence of any long term contract or agreement with its suppliers, the company business, results of operations and financial condition may be adversely affected.
  • arrowIts Promoters and Directors have extended mortgage over their properties along with personal guarantees with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.
  • arrowThe company Registered Office, a part of its factory I and warehouse from where the company operates are not owned by the Company. Any adverse impact on the title /ownership rights of the owner, from who's premises the company operate its registered office, part of its Factory I and warehouse or breach of the terms / non-renewal of the rent agreements, may cause disruption in its corporate affairs and business and impede the company effective operations and thus adversely affect its profitability.
  • arrowThe company industry is labour intensive and its business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by the company employees or those of its suppliers.
  • arrowThe company has entered into related party transactions in the past and may continue to do so in the future. The company has entered into certain transactions with related parties. These transactions or any future transactions with its related parties could potentially involve conflicts of interest.
  • arrowIts Promoter of the Company are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before the court and regulatory authority. Any adverse decision may make it liable to liabilities/ penalties and may adversely affect its reputation, business, and financial status.
  • arrowThe company business is dependent on its manufacturing activities and the company is subject to all risks associated with manufacturing processes. Any disruptions caused in its manufacturing activities could materially and adversely affect the company business, financial condition, cash flows and results of operations.
  • arrowThe company has entered into related party transactions in the past and may continue to do so in the future.
  • arrowThe company export is products in various international markets which make its operations subject to risks and uncertainties of various international markets. Further, its revenue from operations is significantly dependent on export sales and there is no assurance that its may be able to continue the company export sales going forward.
  • arrowChanging regulations in India could lead to new compliance requirements that are uncertain. The regulatory environment in which the company operates is evolving and is subject to change.
  • arrowIts business is operating under various laws which require the company to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and its inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely affect the compay business, prospects, results of operations and financial condition.
  • arrowIf any industrial accident, loss of human life or environmental damage were to occur the company could be subject to significant penalties, other actionable claims and, in some instances, criminal prosecution.
  • arrowThe company has not entered into any long-term contracts with any of its customers and operate on the basis of purchase orders, which could adversely impact its revenues and profitability.
  • arrowThe company faces competition in its business from organized and unorganized players, which may adversely affect the company business operations and financial condition.
  • arrowIts insurance coverage may not be adequate to protect the company against all losses, which could adversely affect business, results of operations and financial condition.
  • arrowThe objects of the Issue include funding working capital requirements of the Company, which is based on certain assumptions and estimates.
  • arrowThe company currently derive its revenue solely from the sale of regular and sustainable greige fabrics, if its products are not wellreceived by the markets or there is a shift in customers buying pattern, its business could be adversely affected.
  • arrowThe company does not have any international office or business place to look after its Export Operations.
  • arrowThe company is highly dependent on third party logistics services for the delivery of its raw materials/ finished products and any disruption in their operations or a decrease in the quality of their services could affect the Company's reputation and results of operations.
  • arrowIts operations are subject to high working capital requirements. If the company is unable to generate sufficient cash flows to allow it to make required payments, there may be an adverse effect on the company operations.
  • arrowIn addition to normal remuneration, other benefits and reimbursement of expenses some of its Directors (including the company Promoter) and Key Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.
  • arrowReliance has been placed on information furnished by its certain Directors and Key Managerial Personnel for details of their profiles included in this Prospectus.
  • arrowIts success depends largely upon the services of the company Management and other Key Managerial Personnel and its ability to not to retain them may adversely affect the operations of the Company.
  • arrowIts operations are subject to environmental, health and safety laws and regulations.
  • arrowThe company has no contingent liabilities and capital commitments pending as of date. Its financial condition could be adversely affected if any of these contingent liabilities or capital commitments materialize in future.
  • arrowSignificant security breaches in its computer systems and network infrastructure, fraud, systems failures and calamities would adversely impact the company business.
  • arrowUpon completion of the Issue, its Promoter / Promoter Group may continue to retain significant control, which will allow them to influence the outcome of matters submitted to the shareholders for approval.
  • arrowThe deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
  • arrowIts ability to pay dividends in the future will depends upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
  • arrowAny future issuance of Equity Shares may dilute its shareholdings, and the sale of the Equity Shares by the company major shareholders may adversely affect the trading price of its Equity Shares.
  • arrowThe Issue Price of the company Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the company Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
  • arrowThe company is subject to the risk of failure of, or a material weakness in, its internal control systems.
  • arrowIts may not succeed in continuing to establish, maintain and strengthen the company reputation and it could be harmed by complaints and negative publicity due to inferior product quality, delayed deliveries etc which could materially and adversely affect customer acceptance of its products and the company business revenue and future prospects.
  • arrowIts may faces some delays in implementation of the company proposed objects.
  • arrowThe Company has not yet placed orders for new machineries required by it for expansion of the company manufacturing facility. Any delay in placing the orders or supply of new machineries may result in time and cost overruns, and may affect its profitability.
  • arrowIts insurance coverage may not be adequate to protect the company against all losses, which could adversely affect business, results of operations and financial condition.
  • arrowIts majority of directors does not possess experience of any listed company.
  • arrowThe company may not be successful in implementing its business strategies.
  • arrowIf the company does not obtain, renew, or maintain the statutory and regulatory permits and approvals required to operate its business, it could have a material adverse effect on the company business.

Ken Enterprises Ltd Peer Comparison

Understand the company’s industry standing

Ken Enterprises Ltd
Laxmi Cotspin Ltd
Pashupati Cotspin Ltd
Face Value
10
10
10
Standalone / Consolidated
Standalone
Standalone
Standalone
Total Income Rs. Cr.
402.2078
144.0221
658.3768
EPS-Basis
4.86
-0.14
5.43
EPS-Diluted
---
---
---
NAV Per Share
24.42
30.88
77.57
P/E-Basic EPS
19.34
---
113.44
P/E-Diluted EPS
---
---
---
RONW(%)
19.9
-0.38
7
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 05 Feb 2025 & closes on 07 Feb 2025.

Ken Enterprises Limited was originally incorporated as 'Ken Textiles Private Limited' on June 05, 1998, vide Certification of Incorporation issued by the Registrar of Companies, Pune. Further, the name of Company was changed from 'Ken Textiles Private limited' to Shri Ken Enterprise Private limited, dated March 06, 2004 and again changed from 'Shri Ken Enterprises Private Limited' to 'Ken Enterprise Private Limited', on June 28, 2013, issued by the Registrar of Companies, RoC- Pune. Thereafter, the status of the Company converted into a Public Limited , and the name of the Company was changed from 'Ken Enterprises Private Limited' to 'Ken Enterprises Private Limited' and a fresh Certificate of Incorporation dated August 05, 2024 was issued to the Company by the RoC, Pune. The Company started manufacturing facility for weaving of fabrics in year 2004. It opened Factory II which was fitted with 12 imported Sulzer Projectile machinery in 2010. The production capacity was expanded by adding Picanol Air Jet weaving machines at Factory I in 2013. The Company started with production of fabric exports in 2014, started finished fabric exports to Latin America and Thailand in 2021. Ken Enterprises Limited is a a distinguished textile company, which operates into Fabric Business and Apparel Division, providing end-to-end solutions. It is engaged in manufacturing of regular and sustainable greige and finished fabrics for domestic and international markets. It works two manufacturing units and they are both located at Shirol Taluka in the Ichalkaranji District of Maharashtra. The Company is an approved vendors for leading international brands such as ZARA (Inditex Group), Target and Primark. It provide diverse fabrics such as structures, seer suckers, double layer, three layer, four layer, chambrays, fashion fabrics with metallic yarns etc, catering to various applications such as women fashion wear, men and kids shirts, home textiles, embroidery, light canvas etc amongst others. The ISO 9001:2015 certified company further make exports to 20+ countries, holds certifications like GOTS and BCI, and embraces sustainability. The Company is planning an IPO upto 89,00,000 Equity Shares comprising a Fresh Issue of 62,00,000 Equity Shares and 27,00,000 Equity Shares through Offer for Sale.

Ken Enterprises Ltd IPO will close on 07 Feb 2025.

  • Diversified range of services offered.
  • Strong Client base.
  • Experience of our Promoter and core management team.
  • Quality Assurance.
  • Cost competitiveness and time bound delivery.

S.No Promoters Name Pre Issue Shares Pre Issue Percentage Post Issue Shares Post Issue Percentage
1 Nikunj Hariprasad Bagdiya 8879580 48.35 7529580 30.65
2 Bina Hariprasad Bagdiya 5325000 28.99 3975000 16.18
3 Krishnakumar Hariprasad Bagdiy 710000 3.87 710000 2.89

  • The company is dependent on third party manufacturers to manufacture its products on job work basis. The company's business is therefore dependent to a large extent on expected performance and operation of such manufacturers.
  • There have been certain instances of non- compliances in respect of ROC filing or payments. Any penalty or action taken by any regulatory authorities in future for non-compliance with provisions of all applicable law and other law could impact on the financial position of the Company to that extent. Further, few form are not available in the company records.
  • "Its logo and Trade Mark "ken" and "KEN" are not registered yet with Registrar of Trademark; any infringement of its brand name or failures to get it registered may adversely affect the company business.
  • The company has experienced negative cash flows in the past and may continue to do so in the future and the same may adversely affect its cash flow requirements, which in turn may adversely affect its ability to operate the company business and implement the company growth plans, thereby affecting its financial condition.
  • Its operations are geographically located in one area i.e. Ichalkaranji, Kolhapur, Maharashtra and any localized social unrest, natural calamities, etc. could have material adverse effect on business and financial operations.
  • The company business is vulnerable to variations in demand and changes in consumer preferences, which could have an adverse effect on its business, results of operations and financial condition.
  • If the company is unable to procure raw material of the required quality and quantity, at competitive prices and in absence of any long term contract or agreement with its suppliers, the company business, results of operations and financial condition may be adversely affected.
  • Its Promoters and Directors have extended mortgage over their properties along with personal guarantees with respect to various loan facilities availed by the Company. Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.
  • The company Registered Office, a part of its factory I and warehouse from where the company operates are not owned by the Company. Any adverse impact on the title /ownership rights of the owner, from who's premises the company operate its registered office, part of its Factory I and warehouse or breach of the terms / non-renewal of the rent agreements, may cause disruption in its corporate affairs and business and impede the company effective operations and thus adversely affect its profitability.
  • The company industry is labour intensive and its business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by the company employees or those of its suppliers.
  • The company has entered into related party transactions in the past and may continue to do so in the future. The company has entered into certain transactions with related parties. These transactions or any future transactions with its related parties could potentially involve conflicts of interest.
  • Its Promoter of the Company are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before the court and regulatory authority. Any adverse decision may make it liable to liabilities/ penalties and may adversely affect its reputation, business, and financial status.
  • The company business is dependent on its manufacturing activities and the company is subject to all risks associated with manufacturing processes. Any disruptions caused in its manufacturing activities could materially and adversely affect the company business, financial condition, cash flows and results of operations.
  • The company has entered into related party transactions in the past and may continue to do so in the future.
  • The company export is products in various international markets which make its operations subject to risks and uncertainties of various international markets. Further, its revenue from operations is significantly dependent on export sales and there is no assurance that its may be able to continue the company export sales going forward.
  • Changing regulations in India could lead to new compliance requirements that are uncertain. The regulatory environment in which the company operates is evolving and is subject to change.
  • Its business is operating under various laws which require the company to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and its inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely affect the compay business, prospects, results of operations and financial condition.
  • If any industrial accident, loss of human life or environmental damage were to occur the company could be subject to significant penalties, other actionable claims and, in some instances, criminal prosecution.
  • The company has not entered into any long-term contracts with any of its customers and operate on the basis of purchase orders, which could adversely impact its revenues and profitability.
  • The company faces competition in its business from organized and unorganized players, which may adversely affect the company business operations and financial condition.
  • Its insurance coverage may not be adequate to protect the company against all losses, which could adversely affect business, results of operations and financial condition.
  • The objects of the Issue include funding working capital requirements of the Company, which is based on certain assumptions and estimates.
  • The company currently derive its revenue solely from the sale of regular and sustainable greige fabrics, if its products are not wellreceived by the markets or there is a shift in customers buying pattern, its business could be adversely affected.
  • The company does not have any international office or business place to look after its Export Operations.
  • The company is highly dependent on third party logistics services for the delivery of its raw materials/ finished products and any disruption in their operations or a decrease in the quality of their services could affect the Company's reputation and results of operations.
  • Its operations are subject to high working capital requirements. If the company is unable to generate sufficient cash flows to allow it to make required payments, there may be an adverse effect on the company operations.
  • In addition to normal remuneration, other benefits and reimbursement of expenses some of its Directors (including the company Promoter) and Key Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company.
  • Reliance has been placed on information furnished by its certain Directors and Key Managerial Personnel for details of their profiles included in this Prospectus.
  • Its success depends largely upon the services of the company Management and other Key Managerial Personnel and its ability to not to retain them may adversely affect the operations of the Company.
  • Its operations are subject to environmental, health and safety laws and regulations.
  • The company has no contingent liabilities and capital commitments pending as of date. Its financial condition could be adversely affected if any of these contingent liabilities or capital commitments materialize in future.
  • Significant security breaches in its computer systems and network infrastructure, fraud, systems failures and calamities would adversely impact the company business.
  • Upon completion of the Issue, its Promoter / Promoter Group may continue to retain significant control, which will allow them to influence the outcome of matters submitted to the shareholders for approval.
  • The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
  • Its ability to pay dividends in the future will depends upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.
  • Any future issuance of Equity Shares may dilute its shareholdings, and the sale of the Equity Shares by the company major shareholders may adversely affect the trading price of its Equity Shares.
  • The Issue Price of the company Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the company Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
  • The company is subject to the risk of failure of, or a material weakness in, its internal control systems.
  • Its may not succeed in continuing to establish, maintain and strengthen the company reputation and it could be harmed by complaints and negative publicity due to inferior product quality, delayed deliveries etc which could materially and adversely affect customer acceptance of its products and the company business revenue and future prospects.
  • Its may faces some delays in implementation of the company proposed objects.
  • The Company has not yet placed orders for new machineries required by it for expansion of the company manufacturing facility. Any delay in placing the orders or supply of new machineries may result in time and cost overruns, and may affect its profitability.
  • Its insurance coverage may not be adequate to protect the company against all losses, which could adversely affect business, results of operations and financial condition.
  • Its majority of directors does not possess experience of any listed company.
  • The company may not be successful in implementing its business strategies.
  • If the company does not obtain, renew, or maintain the statutory and regulatory permits and approvals required to operate its business, it could have a material adverse effect on the company business.

The Issue type of Ken Enterprises Ltd is Fixed Price - SME.

The minimum application for shares of Ken Enterprises Ltd is 1200.

The total shares issue of Ken Enterprises Ltd is 8899200.

Initial public issue of up to 88,99,200 equity shares of face value of Rs. 10/- each of Ken Enterprises Limited for cash at a issue price of Rs. 94/- per equity share (including a premium of Rs. 84/- per equity share) ("Issue Price") aggregating up to Rs. 83.65 crores comprising of fresh issue of up to 61,99,200 equity shares aggregating to Rs. 58.28 crores ("Fresh Issue") and an offer for sale of upto 27,00,000 equity shares by Nikunj Hariprasad Bagdyia and Bina Hariprasad Bagdiya ("Selling Shareholders") aggregating to Rs. 25.37 crores ("Offer for Sale") ("The Issue") and upto 4,45,200 equity shares at an issue price of Rs. 94 per share aggregating to Rs. 4.18 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of up to 84,54,000 equity shares of face value of Rs. 10/- each at an issue price of Rs. 94 per equity share aggregating to Rs. 79.47 croress ("Net Issue"). The issue and the net issue will constitute 36.23% and 34.41% of the post-issue paid-up equity share capital of the company. The face value of the equity shares is Rs. 10/- each and the issue price is 9.4 times of the face value