KK Silk Mills, a prominent manufacturer specializing in fabric and garments, is poised to make its debut on the capital markets with its Initial Public Offering (IPO). The much-anticipated IPO is scheduled to open for subscription on November 26, offering investors a unique opportunity to participate in the company's growth trajectory. The company's strategic objective is to raise a substantial sum of ₹28. 50 crore through the issuance of 75 lakh new equity shares, while this particular issue is structured entirely as a fresh issue, meaning there will be no Offer for Sale (OFS) component. This implies that all the capital raised will directly flow into the. Company's coffers, providing a significant boost to its expansion plans and operational capabilities.
IPO Price Band and Lot Size Details
For prospective investors, the price band for the IPO has been meticulously set between ₹36 and ₹38 per equity share. This defined price range provides a clear valuation benchmark for. Potential investors, enabling them to formulate their investment strategies effectively. Complementing the price band, the lot size for bidding has been fixed at 3000 shares, while this means that retail investors will be required to bid for a minimum of 3000 shares, offering them an accessible entry point to acquire a stake in the company within a specified investment threshold. This lot size ensures broad participation, catering to both individual retail investors and larger institutional players.
Key Dates and Listing Timeline
The bidding window for the KK Silk Mills IPO will commence on November 26 and conclude on November 28. This three-day period offers ample opportunity for investors to place their bids and become part of the company's future. Following the closure of the bidding process, the allotment of shares is expected to be finalized by December 1. This streamlined allotment process ensures that successful bidders receive their shares in a timely manner. Subsequently, the company's shares are slated to be listed on the BSE SME platform on December 3. Listing on the BSE SME will provide KK Silk Mills with. Public market visibility, enhance its credibility, and offer liquidity to its shareholders.
Promoters and Share Allocation Structure
The driving forces behind KK Silk Mills are its visionary promoters: Manish Kantilal Shah, Nilesh Kantilal Jain, and Ashaben Manish Shah. These individuals have been instrumental in the company's inception and growth, guiding it to its current position. The public issue features a structured allocation of shares across various investor categories. Half of the issue, specifically 50 percent, has been reserved for Qualified Institutional Buyers (QIBs), encouraging participation from large institutional investors. A 15 percent portion has been earmarked for Non-Institutional Investors (NIIs), which includes high-net-worth individuals and corporate entities. The remaining 35 percent of the issue is reserved for retail investors, ensuring that the general public has a fair opportunity to invest in the company.
Strategic Utilization of IPO Proceeds
KK Silk Mills has outlined a clear and strategic plan for the utilization of the net proceeds from the IPO, after accounting for issue expenses. A sum of ₹3. 1 crore is designated for the replacement of plant and machinery. This investment is crucial for enhancing operational efficiency, upgrading technology, and boosting production capabilities, thereby enabling the company to meet evolving market demands. On top of that, a significant portion of ₹17. 86 crore will be allocated towards the repayment of certain existing borrowings. This move is expected to strengthen the company's balance sheet, reduce its financial use, and provide greater financial flexibility for future growth initiatives. The residual funds will be deployed for general corporate purposes, which may include working capital requirements,. Strategic expansion plans, and other initiatives that support the overall growth and sustainability of the company.
Overview of Financial Performance
KK Silk Mills has demonstrated a solid financial performance in recent periods, presenting an attractive proposition for investors. In the April-June 2025 quarter, the company reported a revenue of ₹54. 3 crore, showcasing its strong operational capabilities. During the same quarter, the profit stood at ₹1. 51 crore, highlighting its profitability, while for the full financial year 2025, the company witnessed its profit more than double, reaching ₹4. 68 crore, a testament to its strong growth trajectory, while concurrently, revenue for FY25 increased by 15. 9 percent, amounting to ₹220. 8 crore. In the preceding financial year 2024, KK Silk Mills recorded a profit of ₹2. 26 crore on a revenue of ₹190. 5 crore. These consistent figures underscore the company's sustained growth and financial stability, making it a compelling investment option.
Key Advisory Roles
To facilitate this IPO process, Axial Capital has been appointed as the book-running lead manager for the KK Silk Mills IPO, while their expertise and guidance are expected to ensure a smooth and efficient execution of the offering. Also, MUFG Intime India Pvt. Ltd. has been designated as the registrar for the IPO, responsible for managing the allotment process and other related administrative tasks. The involvement of these key advisors adds to the credibility. And transparency of the IPO, instilling confidence among potential investors.
