CMP: ₹152.00 | IPO Price: ₹140 | Issue Size: ₹40 Cr | Date of IPO: Jan 22, 2025
💎 At a Glance
Kabra Jewels Ltd, which listed on the NSE SME platform in January 2025, has submitted its first SEBI Regulation 32 compliance report — and it’s as clean as a polished solitaire. No deviation, no misuse, no red flags. Except… they had some leftover change from IPO expenses — about ₹1.77 crore — which was creatively reallocated to “general corporate purposes.”
All legal, but definitely worth a closer look.
🏗️ Use of IPO Proceeds — The Original Plan
| Purpose | Allocated (₹ Lakhs) | Utilized till Mar 31, 2025 (₹ Lakhs) |
|---|---|---|
| Repayment of borrowings | 1,000.00 | 1,000.00 |
| Working capital | 2,200.00 | 2,200.00 |
| General corporate purposes | 398.68 | 576.37 |
| Issue expenses | 401.32 | 223.63 |
| Total | 4,000.00 | 4,000.00 |
➡️ Surplus from issue expenses: ₹177.69 lakh
➡️ Reallocated to general corporate purposes (within SEBI’s 25% cap limit)
📃 Key Disclosures from the Company
- No deviation from objects mentioned in the prospectus.
- Funds fully utilized as of March 31, 2025.
- Audit Committee and Board of Directors reviewed and approved the fund utilization statement on May 27, 2025.
- Monitoring Agency: Not applicable (since it’s an SME IPO).
🧠 EduInvesting Take
Kabra Jewels has played it safe — at least on paper. But here’s what we noticed:
💬 “Issue expenses were estimated at ₹401.32 lakh… actual was ₹223.63 lakh… the leftover ₹177.69 lakh was shifted to General Corporate Purposes.”
Nothing illegal. All within SEBI guidelines. But one can’t help but wonder:
- How was the original estimate overshot by 80%?
- Did the company always plan to shuffle surplus into discretionary use?
That said, kudos to them for transparency — most SME companies don’t even file the deviation statement.
🧮 Quick Maths — What This Means for Investors
- IPO funds weren’t misused ✅
- But the savings weren’t refunded or retained — just reallocated 🧐
- While allowed, such adjustments deserve more shareholder visibility
📉 Stock Check: CMP vs IPO Price
| IPO Price | ₹140 |
|---|---|
| Current Market Price (CMP) | ₹152 |
| Gain Since Listing | +8.6% |
The listing hasn’t exactly been a fireworks show, but the stock hasn’t tanked either — which, for an SME stock, is already a green flag.
🧵 EduInvesting Verdict
Kabra Jewels didn’t lie. They didn’t hide. But they did tuck away ₹177 lakh into a corner no one was watching.
And that’s the story with most SME IPOs — they’re technically clean, but you need a microscope to read between the lines. Thankfully, this one didn’t go the “pump-and-dump” route.
If they continue transparent disclosures with future filings — and avoid the usual “family-run siphon schemes” — this SME might actually deserve its jewellery tag.
🏁 Final Notes
- ✅ All IPO proceeds used
- ✅ No shareholder approvals required
- ✅ Deviation = None
- 🔍 Surplus from overestimated expense = quietly reallocated
- 📌 Watchlist this for Q1 growth traction and governance pattern
🗓️ Published: May 27, 2025
✍️ By: Prashant Marathe
Tags: Kabra Jewels IPO, SME Fund Utilization, Regulation 32 SEBI, Jewellery SME Stock, IPO Deviation Report, EduInvesting, NSE SME Watchlist
