The initial public offering of Jinkushal Industries is witnessing remarkable interest from investors, with Day 2 subscription figures showing strong enthusiasm across retail and non-institutional categories.
Investors are clearly eyeing the IPO, driven by the company’s niche in customised and refurbished construction machines and its robust export-oriented model.
Market Response So Far
By midday on September 26, the IPO had received bids for over 2.46 crore shares, against an offer size of 67 lakh shares on the NSE. This represents nearly 4 times subscription on Day 2 alone.
- Retail investors: Subscribed 535% of their reserved portion
- Non-Institutional Investors (NII): Booked 459% of allocation
- Qualified Institutional Buyers (QIBs): Subscribed just 3%
The numbers indicate strong confidence from retail and mid-sized investors, highlighting the growing interest in IPOs that combine international exposure with a focused product niche.
Company and IPO Details
Jinkushal Industries is based in Chhattisgarh and specializes in exporting refurbished and customised construction machinery. Its IPO comprises:
- Fresh issue: Over 86 lakh shares
- Offer for Sale (OFS) by promoters: 9.6 lakh shares
- Price band: Rs 115–121 per share
- Upper valuation: Around Rs 464 crore
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Investors can apply for a minimum of 120 shares, amounting to Rs 14,520 at the top of the price band. Applications can be made in multiples of 120 shares beyond this minimum.
The allotment of shares is expected to be finalised by September 30, with listing scheduled for October 3.
Utilisation of IPO Proceeds
Funds raised through the fresh issue will be primarily used for:
- Meeting working capital requirements
- Supporting general corporate purposes
The offer-for-sale (OFS) proceeds will go directly to existing shareholders, without impacting the company’s operational cash flow.
Anchor Investors and Pre-IPO Support
Ahead of the public offering, Jinkushal Industries raised Rs 35 crore from anchor investors on September 24.
Key points:
- Number of shares allotted to anchor investors: 28.78 lakh
- Price per share for anchor book: Rs 121
- Anchor investors: Included international and domestic institutional players
This early backing helped create a positive sentiment for the IPO’s public subscription.
Financial Overview
The company’s recent financials reflect strong revenue growth and a healthy return profile:
- FY24 revenue: Rs 2,385.9 crore
- FY24 EBITDA: Rs 275.7 crore
- FY25 revenue (restated): Rs 3,805.6 crore
- FY25 EBITDA: Rs 286.0 crore (~7.5% operating margin)
- Net profit (post-bonus EPS): Rs 6.15
- Return on net worth: 21.2%
- Debt-to-equity ratio: ~0.01 (very low leverage)
- Revenue sources: Nearly 99% from exports
This highlights Jinkushal Industries’ asset-light, export-focused business model, backed by low debt and strong returns, reflecting a solid foundation for investors who value fundamental strength.
Key Takeaways
- Strong demand with retail portion oversubscribed 5x
- Asset-light, export-oriented business model
- Low debt and healthy return ratios
- IPO proceeds primarily for working capital and corporate use
- Listing expected on October 3, allotment by September 30
The IPO is shaping up to be one of the most closely watched offerings in the construction machinery export sector, drawing attention from both retail and institutional participants.
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