Day 1 IPO Success for Jinkushal Industries: Key Details and Investment Insights

Jinkushal Industries has launched an initial public offering (IPO) valued at Rs 116.15 crore, which saw a strong response on its opening day, September 25. Within just hours, the issue was fully subscribed, with investors vying for 69.78 lakh shares compared to the 67.21 lakh shares available, as indicated by NSE data.

The IPO is priced between Rs 115 and Rs 121 per share, including a fresh issue of Rs 104 crore and an offer for sale amounting to Rs 11.61 crore.

IPO Subscription Status

As of noon, the IPO had reached a subscription rate of 1.04 times, according to data from the stock exchange.

• Non-Institutional Investors (NIIs): This category, which includes high-net-worth individuals, was subscribed 1.14 times.
• Retail Investors: Leading the charge, the retail segment was booked 1.6 times against the 33.59 lakh shares designated for this group.
• Qualified Institutional Buyers (QIBs): This segment saw only 1% subscription so far, with 19.21 lakh shares set aside for QIBs, who typically engage during the final day of the offering, September 29.

IPO Grey Market Premium (GMP)

Currently, this IPO has a grey market premium of approximately 17.36%, equivalent to Rs 21, signifying positive sentiment among investors. This premium suggests a potential listing price of about Rs 142 per share.

Note: The grey market premium (GMP) serves as an unofficial metric and can be unpredictable, so it should be approached with caution.

Key IPO Details

The subscription window will remain open for three days, from Thursday, September 25, 2025, to Monday, September 29, 2025. Tentative allotment is slated for Tuesday, September 30, with expected listing on Friday, October 3, 2025.

Company Overview

Jinkushal Industries has positioned itself as the largest Indian exporter of construction machinery outside the OEM ecosystem, holding nearly 7% market share. The company operates across over 30 countries, including the UAE, Mexico, Belgium, South Africa, and Australia. Its offerings encompass three key areas: customized new construction equipment, refurbished machines, and its proprietary ‘HexL’ brand of backhoe loaders. Recently, they have also ventured into logistics warehouse leasing and equipment rentals.

Financial Performance

In FY25, Jinkushal reported revenues of Rs 381 crore, reflecting a significant 59% increase from FY24. However, profit after tax stood at Rs 19 crore, and EBITDA margins dipped to 6.1% from 9.8% in the previous year.

Use of IPO Proceeds

Proceeds from the IPO will primarily fund working capital needs, with the remainder allocated for general corporate purposes.

Should You Bid?

At the upper price band, this IPO is valued at 30.1 times its FY25 earnings, with an EV/EBITDA ratio of 22x. Anand Rathi Research has issued a “Subscribe – Long Term” recommendation, underscoring Jinkushal’s status as a leading exporter of non-OEM construction equipment with a strong international presence. The company’s strategic pivot towards the HexL brand signifies a shift from mere trading to a more product-focused, customer-centric approach. Nonetheless, the IPO appears fully priced, suggesting that long-term subscription may be the wisest course of action.

(Disclaimer: The recommendations and opinions here are those of the experts and do not reflect the views of The Economic Times.)