Jinkushal Industries Lists Shares at 3% Premium Above IPO Price

Shares of Jinkushal Industries debuted on the stock market this past Friday, opening with a slight premium over the IPO price. On the BSE, the stock began trading at Rs 125.05 per share, reflecting a 3.45% increase from its issue price of Rs 121. On the NSE, Jinkushal Industries shares opened at Rs 125, marking a 3.31% rise.

The listing aligned with market expectations for the unlisted shares. Prior to the debut, the stock was trading at a grey market premium of around 17%, which indicated a more subdued listing than initial speculative forecasts suggested.

Strong Investor Response

The IPO, worth Rs 116.15 crore, was available from September 25 to September 29 and attracted robust interest from all investor categories. Overall, the issue saw a subscription rate of 65 times, with non-institutional investors leading at 146 times. The retail portion was covered 47 times, while qualified institutional buyers subscribed 36 times. This offering included a fresh issue of Rs 104.54 crore and an offer for sale (OFS) of Rs 11.61 crore. The net proceeds will primarily be utilized for working capital and general corporate purposes.

About the Company

Jinkushal Industries specializes in exporting both new and refurbished construction machinery. The company supplies equipment to over 30 countries, including the UAE, Mexico, South Africa, the UK, and Australia.

Jinkushal operates through three main segments: exporting new machines tailored to specific customer requirements, exporting used and refurbished machines, and promoting its in-house “HexL” brand. The company has also invested in a refurbishment facility, employing skilled staff to ensure that machines meet global compliance standards.

As of December 2024, Jinkushal had delivered over 1,500 machines globally, with 900 new and 600 refurbished units.

Financials and Valuation

In FY25, Jinkushal recorded significant financial growth, posting a 59% increase in revenue, amounting to Rs 385.8 crore compared to Rs 242.8 crore in FY24. Net profit increased by 3% year-on-year to Rs 19.1 crore, while EBITDA saw a slight improvement to Rs 28.6 crore.

Given the strong subscription and favorable grey market premiums, Jinkushal is likely to experience modest gains upon listing. However, its long-term performance will heavily rely on maintaining export demand and successfully expanding its proprietary HexL brand.

What do you think about the debut performance of Jinkushal Industries?