Jinkushal Industries IPO Day 3: GMP, Subscription Status, and Investment Insights

Jinkushal Industries has launched its Rs 116.15-crore IPO, entering its final day of bidding on Monday. The response from investors has been strong, as evidenced by the substantial subscriptions recorded in the first two days. By the end of Day 2, the total subscription reached 5.11 times, with bids totaling 3.43 crore shares compared to the 67.21 lakh shares available, according to data from BSE.

In the grey market, Jinkushal Industries shares are currently trading at a premium of about Rs 17 over the issue price, suggesting a possible 14.6% gain at the upper price band. While this is a decrease from the earlier premium of 16.5%, the overall sentiment among investors remains positive.

The IPO is priced between Rs 115 and Rs 121 per share. This offering includes a fresh issue worth Rs 104 crore and an offer for sale (OFS) of Rs 11.61 crore.

Jinkushal Industries IPO GMP

At present, Jinkushal Industries’ IPO has a grey market premium (GMP) of approximately Rs 17, indicating a potential listing gain of around 14.6%. Based on this premium, the stock is expected to debut at roughly Rs 138 per share.

Note: The Grey Market Premium serves as an unofficial gauge for a stock’s anticipated listing price. Because it operates outside regulated trading environments, GMP can be highly volatile and should be approached with caution.

Jinkushal Industries IPO Subscription Status

As per the latest information from the stock exchanges, the Jinkushal Industries IPO was subscribed 5.11 times by the end of Day 2.

• Retail Investors: This segment showed the highest demand, with subscriptions reaching 7.28 times the 33.59 lakh shares allocated for retail investors.

• Non-Institutional Investors (NIIs): Subscriptions in this category—comprising high-net-worth individuals—stood at 6.79 times the 14.39 lakh shares available.

• Qualified Institutional Buyers (QIBs): Interest from institutional buyers was limited, with only 4% of the 19.21 lakh shares reserved for them being subscribed.

IPO Timeline: Key Dates to Watch

The Jinkushal Industries IPO is open for subscriptions from September 25, 2025, to September 29, 2025, providing investors with a three-day window. The basis of allotment is expected to be finalized on September 30, with shares likely to be listed on the stock exchanges by October 3, 2025.

About the Company

Jinkushal Industries stands out as India’s largest exporter of construction machinery outside the OEM (Original Equipment Manufacturer) sector, capturing an estimated 7% of the market share. With operations across 30 countries, the company has a significant global presence, including key markets like the UAE, Mexico, Belgium, South Africa, and Australia.

The business model is divided into three main segments. First, Jinkushal offers customized new construction machinery tailored to client specifications. Second, it provides refurbished and used equipment targeted at cost-conscious customers. Third, the company markets its own ‘HexL’ brand of backhoe loaders.

In addition to manufacturing and exports, Jinkushal has diversified its revenue by entering the equipment rental sector and leasing logistics warehouses.

Financial Performance

In FY25, Jinkushal Industries reported revenue of Rs 381 crore, a 59% growth compared to the previous fiscal year. However, profitability has faced challenges, with EBITDA margins shrinking from 9.8% in FY24 to 6.1% in FY25. Despite this margin pressure, the company managed to maintain a net profit of Rs 19 crore, supported by its expanding operations.

IPO Objectives: Strategic Use of Funds

The funds raised from the IPO will primarily aim to bolster the company’s working capital, facilitating smoother operations and scalability. Additional funds will also support general corporate needs, contributing to Jinkushal’s growth and expansion strategies in both domestic and international markets.

Should You Consider Bidding?

At the maximum price band, the IPO is set at a price-to-earnings (P/E) ratio of 30.1 based on FY25 earnings, while the enterprise value to EBITDA (EV/EBITDA) multiple stands at 22x.

Anand Rathi Research has given the IPO a “Subscribe – Long Term” rating, identifying Jinkushal as a leader in the non-OEM construction equipment export sector, with a solid presence in markets such as the UAE and the USA. The company’s strategic move towards promoting its HexL brand shifts its focus from trading to a more product-centered approach. Although the IPO seems fully valued, long-term investors might find it worth subscribing.

What are your thoughts on participating in this IPO?