Jinkushal Industries IPO Sees Solid Response, Grey Market Premium Signals Strong Listing

The initial public offering (IPO) of Jinkushal Industries, which opened for subscription on September 25, is closing on Monday. The issue has received solid demand from retail investors and high-net-worth individuals.

By 10:15 a.m. on the final day, the IPO had been subscribed 6.46 times, with investors bidding for more than 4.34 crore shares against 67.21 lakh on offer. The retail category was subscribed 8.91 times, while the non-institutional segment drew 9.32 times bids. The qualified institutional buyer (QIB) portion was subscribed 0.04 times so far.

Grey Market Signals Healthy Listing

In the unlisted market, Jinkushal's shares are changing hands at a premium of ₹17 per share. Based on the upper price band of ₹121, the stock could list at around ₹138 - translating to gains of roughly 14% on listing day.

Issue Details And Timeline

The IPO consists of a fresh issue of 86.36 lakh equity shares and an OFS (Offer-For-Sale) of 9.59 lakh shares. The company will use the net proceeds for meeting long-term working capital requirements and for general corporate purposes, among others, as outlined in the red herring prospectus.

GYR Capital Advisors is the book-running lead manager to the issue, while Bigshare Services is the registrar to the issue.

Retail investors can apply for a minimum of 120 shares. At the upper price band, this amounts to ₹14,520 per lot and up to ₹1.9 lakh for 13 lots.

The share allotment is likely to be finalized on Tuesday. Successful applicants are expected to receive shares in their demat accounts on Wednesday. The stock is expected to make its debut on the NSE and BSE on Friday.

Analyst View

SEBI-registered analyst Aditya Hujband has given an 'Apply' rating on the Jinkushal Industries IPO.

Hujband said Jinkushal's key strengths include its recognition as a Three-Star Export House by the Government of India, a diversified business model that spans machinery exports, mining services, and logistics, and a strong global footprint across more than 30 countries. 

He also highlighted the company's own proprietary HexL brand, which gives the product lines additional strength and positions the company even more favourably in the marketplace.

At the same time, he highlighted several risks associated with the business, including high working capital requirements, exposure to global demand fluctuations for construction and mining machinery, dependence on third-party suppliers, vulnerability to changes in international trade policies, and competition from both domestic and international players.

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