Source: The Economic Times
Jinkushal Industries Ltd. shares are selling at a premium in the grey market, where the company’s IPO closes subscriptions today.
High Subscription Rate
The IPO opened on Thursday, September 25, and was completely subscribed on day one. On Friday, September 26, the issue was subscribed 5.11 times and received applications for 3.43 crore shares versus the 67.21 lakh shares available. Retail investors demonstrated solid demand by putting in bids worth more than seven times their reserved portion.
Grey Market Premium (GMP) Today
The grey market premium (GMP) for September 29 is currently at ₹17 per share. With an IPO price band of ₹115–₹121, it is expected to list at ₹138. This is a potential gain of approximately 14.05% from the issue price.
IPO Information
- Issue Size – ₹ 116.15 crore
- Fresh Issue – 8.6 million shares (₹ 104.54 crore)
- Offer for Sale (OFS) – 1 million shares (₹ 11.61 crore)
- Price Band – ₹ 115 – ₹ 121 per share
- Minimum Lot – 120 shares (₹ 14,520 at the top band)
- Lead Manager – GYR Capital Advisors Pvt. Ltd.
- Registrar – Bigshare Services Pvt. Ltd.
Important Dates:
- Allotment Date – September 30
- Refunds/Demat Credit – October 1
- Listing on BSE & NSE – October 3
- Intentions for Utilization of Proceeds
The company intends to use the cash raised from the IPO for working capital purposes and for general corporate purposes.
Company Background
Jinkushal Industries was founded in 2007 and is in the construction machinery business. The company:
- Designs bespoke new equipment
- Deals in used refurbished equipment
- Distributes equipment with its own HexL brand
It operates on a global scale, in over 30 countries worldwide, which include the UAE, Mexico, the Netherlands, Belgium, South Africa, Australia, and the UK.
Finances
For the year ending March 31, 2025:
- Revenue: ₹385.81 crore (59% growth from ₹242.80 crore last year)
- Profit after tax (PAT): ₹19.14 crore (3% growth from ₹18.64 crore last year)
The IPO is being viewed positively, and the grey market is suggesting a 14% listing gain with a ₹17 GMP. However, experts point out that the grey market is purely speculative and the price of the IPO may differ from the grey market.
Conclusion:
The IPO of Jinkushal Industries has evoked an enthusiastic response with good subscription numbers and a range of grey market premiums. Traders in the grey market indicated around a 14% potential gain at listing, although generally speaking, grey market indicators have less reliability in reflecting evolving shifts in real market activity. The company’s revenues are increasing, it operates on a global scale, and its interests are expanding. While uncertainties remain, it is useful to toggle risk with fundamentals when considering investing in this IPO.
