Market Performance
Jainik Power Cables' share price made a disappointing entry into the stock market on Tuesday, June 17. The stock is listed at ₹82 on the NSE SME platform, which is 25.45% lower than its initial public offering (IPO) issue price of ₹110.
- Listing Price: ₹82
- Issue Price: ₹110
- Listing Discount: 25.45%
- Exchange: NSE SME
The IPO was launched to raise ₹51.20 Crore and received a lukewarm response from investors.
Main News
Despite decent fundamentals, Jainik Power Cables IPO received limited interest during the subscription window, which was open from June 10 to June 12.
- Overall Subscription: 1.54 times
- Retail Investor Subscription: 2.08 times
- Non-Institutional Investors (NII): 1.13 times
- Qualified Institutional Buyers (QIBs): 1.01 times
- Shares Offered: 44.29 lakh
- Bids Received: 68.42 lakh
The IPO was a completely fresh issue of 46.63 lakh shares. No existing shareholders sold their stakes in this offering. The minimum application size was 1,200 shares, requiring a retail investment of ₹1.32 lakh.
The proceeds from the IPO will be used for:
- Working capital requirements
- Establishment of a new manufacturing facility
- Partial repayment of debt
- General corporate purposes
Company Details
Jainik Power and Cables Limited, founded in May 2011, began operations as an aluminum rod trader. The company shifted to manufacturing aluminum wire rods in 2023.
With over 10 years of experience in the metal sector, the company has gradually established a solid reputation, placing a strong emphasis on quality control and safety standards.
Key Highlights:
- Specializes in aluminum wire rod production
- Strong adherence to Environmental, Health, and Safety protocols
- Holds multiple ISO certifications
- Employs spectrometer-based purity testing
The company also boasts a dedicated Quality Assurance Department to maintain consistent product standards.
Financial Performance
Revenue
- FY 2025 Revenue: ₹352.38 Crore
- YoY Growth: 4%
Net Profits
- FY 2025 Net Profit (PAT): ₹9.24 Crore
- YoY Growth: 84%
Although revenue grew only slightly, the company reported a substantial increase in net profit, indicating improved operational efficiency.
Summary of the Article
Jainik Power Cables' share price started its journey in the secondary market on a weak note, listing at a steep 25.45% discount. The IPO received moderate investor participation, with an overall subscription ratio of 1.54x.
The company, with its solid presence in the aluminum wire rod segment and double-digit profit growth, shows potential for long-term operational success. However, the tepid debut underscores investor caution in the current SME IPO space.
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