Jinkushal Industries IPO day 3 live: GMP, subscription status, review. Should you apply?
As Jinkushal Industries' IPO approaches its close, retail investors are keenly interested. With strong subscription numbers and promising grey market trends indicating potential listing gains, is it time to dive in?
Jinkushal Industries IPO day 3: The initial public offering (IPO) of Jinkushal Industries, which opened for subscription on Thursday, September 25, and is to conclude today, i.e., Monday, September 29, is witnessing decent buying interest from retail and non-institutional investors (NIIs). While the mainboard IPO has already been subscribed for than 18 times, the grey market trends suggest the stock could be listed at a healthy premium on the NSE and the BSE.
Jinkushal Industries IPO subscription status
By 5 pm on day 3 of bidding on Monday, the public issue had been booked 65.10 times, receiving bids for 43,75,65,240 shares against 67,21,048 offered. The retail portion had been subscribed to 47.10 times, whereas its NII segment had been filled 146.39 times. The QIB portion of the book build issue had been subscribed to 35.66 times.
Jinkushal Industries IPO GMP today
According to grey market observers, the shares of Jinkushal Industries are available at a premium of ₹17 per equity share. Considering the upper price band of the issue at ₹121, the stock is expected to be listed at ₹138, a premium of 14 per cent.
Jinkushal Industries IPO details
Jinkushal Industries IPO combines a fresh issue of 86,35,935 shares and an OFS portion of 9,59,548 shares.
According to the company's RHP, it wants to utilise the proceeds from the fresh issue to meet the long-term incremental working capital requirements and for general corporate purposes.
GYR Capital Advisors is the book-running lead manager, and Bigshare Services is the issue's registrar.
The minimum lot size for an application is 120 Shares. With the issue's upper price band at ₹121, the minimum amount of investment required by retail investors is ₹14,520, and the maximum amount is ₹1,88,760 for 13 lots.
Share allotment is likely to be finalised on Tuesday, September 30. Successful bidders can expect shares credited to their demat accounts on Wednesday, October 1, while those who fail to receive the subscription will receive a refund on the same day.
The company's shares will be listed on the BSE and the NSE on Friday, October 3.
Jinkushal Industries IPO review
Jinkushal Industries exports and trades new, customised, used, and refurbished construction machines to global markets.
The company's revenue from operations for FY23 stood at ₹233.45 crore, which rose to ₹238.60 crore in FY24 and ₹380.6 crore in FY25. Profit for FY23 was ₹10.12 crore, which increased to ₹18.64 crore in FY24 and to ₹19.14 crore in FY25.
According to brokerage firm Anand Rathi, Jinkushal Industries is among the largest exporters of non-OEM construction equipment. Through its subsidiaries, it has an international presence in the UAE and the USA.
The brokerage firm underscored that at the upper price band, the company is valued at a P/E of 24 times its FY25 earnings, with EV/EBITDA of 22 times and a market cap of ₹464.4 crore after the issue of equity shares.
Jinkushal Industries IPO: Should you apply?
Anand Rathi believes that the Jinkushal Industries IPO is fully priced, and the brokerage firm recommends a “subscribe for long term” rating for it.
Brokerage firm Ventura said the company plans to consolidate international market share, expand into new geographies, and strengthen in-house brand offerings.
"Consistent recognition, such as 'India’s top exporter of the year – service' and 'top SME business of the year 2024,' positions the company for sustainable long-term growth," said Ventura.
According to Arun Kejriwal, Founder of Kejriwal Research and Investment Services, the company is making a profit, and due to the small size, the public issue is expected to sail through the Indian primary market with ease.
However, Kejriwal underscored that the secondary market mood is expected to work as hitherto.
"The company's business model doesn't provide definite comfort for the long term. Hence, high-risk investors may apply for the public issue for listing gains only," said Kejriwal.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.