Jinkushal Industries' IPO opened with a price band of ₹115-121 per share and was fully subscribed within two hours. Retail investors showed the most interest, while the Grey Market Premium (GMP) also indicated a b listing. The funds raised from the company's IPO will be used for working capital and corporate purposes.
Jinkushal Industries IPO: Jinkushal Industries' IPO opened on September 25 and was fully subscribed within two hours. The IPO's price band is ₹115-121 per share, and the minimum investment is ₹14,520. The company's issue consists of a fresh issue of 86 lakh shares and an Offer for Sale of 9.6 lakh shares. Based on b investor interest and the Grey Market Premium (GMP), a good return on listing is expected.
IPO Price Band and Investment Details
The price band for Jinkushal Industries has been set at ₹115 to ₹121 per share. Investors can bid for a minimum of 120 shares, requiring an investment of ₹14,520 at the upper price band. The company's estimated market capitalization at the upper price band is approximately ₹464 crore. The IPO includes a fresh issue of 86 lakh shares and an Offer for Sale of 9.6 lakh shares by the promoters.
The allotment of shares is expected to be finalized by September 30. Subsequently, the company's shares will be listed on stock exchanges from October 3. The proceeds from the fresh issue will be utilized by the company for working capital requirements and general corporate purposes. GYR Capital Advisors are the book-running lead managers for this IPO, and Bigshare Services is acting as the registrar.
Anchor Investors and Their Participation
One day before the IPO opened, on September 24, anchor investors invested ₹35 crore in the company. Nomura Singapore, HDFC Bank, Vini Growth Fund, StepTrade Revolution Fund, Santosh Industries, and Swayom India Alpha Fund were the main anchor investors. These investors were allotted 28.78 lakh equity shares at ₹121 per share.
Financial Performance and Figures
According to Harshal Dasani, Business Head of INVAsset PMS, the company recorded revenue of ₹2,385.9 crore and an EBITDA of ₹275.7 crore in FY24. For FY25, revenue increased to ₹3,805.6 crore, while EBITDA stood at ₹286 crore. The operating margin was recorded at 7.5 percent. Net profit per share after bonus stood at ₹6.15.
In FY25, Return on Net Worth was 21.2 percent, while the debt-to-equity ratio was merely 0.01. Approximately 99 percent of the revenue was generated from outside India, indicating the company's export-oriented model. The market cap at the upper price band is ₹464 crore, based on a 19.7x P/E multiple of FY25 earnings.
Grey Market Premium and Listing Indications
Prior to the IPO, Jinkushal Industries' unlisted shares were trading at a Grey Market Premium of approximately 17-18 percent. According to these indications, investors are likely to receive good returns on listing. Although this is lower compared to the previously established Grey Market Premium of 42 percent, enthusiasm among investors is still evident.
The IPO being subscribed within the first two hours of its opening reflects enthusiasm and confidence among investors. Retail investors showed the most interest, which indicates that the company's shares are popular among small and medium investors. Non-institutional investors and qualified institutional buyers also showed a good response to the investment.
