Jinkushal Industries Announces Rs 116.11 Crore IPO with Price Band of Rs 115-121
Jinkushal Industries, an export-oriented construction machinery supplier, has set its IPO price band at Rs 115-121 per share, aiming to raise Rs 116.11 crore. The IPO, opening from September 25 to 29, includes a fresh issue of Rs 104.00 crore and an OFS of Rs 11.61 crore. The company operates in new customized machinery, refurbished machines, and HexL brand backhoe loaders across 30+ countries. Jinkushal's financials show 59% revenue growth and 2.69% net profit growth. The IPO proceeds will primarily fund working capital requirements.
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Jinkushal Industries, a prominent export-oriented construction machinery supplier, has set the stage for its Initial Public Offering (IPO) with a price band of Rs 115-121 per share. The company aims to raise Rs 116.11 crore through this public issue, which is scheduled to open on September 25 and close on September 29.
IPO Details
The IPO comprises a fresh issue of equity shares worth Rs 104.00 crore and an offer for sale (OFS) of Rs 11.61 crore. Investors can look forward to the listing of Jinkushal Industries' shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), expected to take place on October 3.
Company Overview
Jinkushal Industries has established a strong presence in the construction machinery sector, operating across three key verticals:
- New customized machinery
- Refurbished machines
- HexL brand backhoe loaders
The company's global footprint spans over 30 countries, showcasing its international appeal and market reach. Jinkushal Industries has successfully supplied over 1,500 construction machines to date. In the nine months ending December, the company delivered an impressive 1,171 machines.
Financial Performance
Jinkushal Industries has demonstrated robust financial growth:
| Financial Metric | FY24 | FY25 | Growth |
|---|---|---|---|
| Revenue | - | 385.80 | 59.00% |
| Net Profit | 18.60 | 19.10 | 2.69% |
The company's financial health is further underscored by key performance indicators:
- Return on Equity (ROE): 28.30%
- EBITDA Margin: 7.50%
- Debt-to-Equity Ratio: 0.58
Utilization of IPO Proceeds
The funds raised through the IPO will be strategically allocated as follows:
- Rs 72.70 crore for working capital requirements
- The remaining amount for general corporate purposes
This capital infusion is expected to bolster Jinkushal Industries' operational capabilities and support its growth initiatives.
Conclusion
As Jinkushal Industries prepares to enter the public market, investors will be closely watching this export-oriented construction machinery supplier. With its diverse product portfolio, global presence, and solid financial performance, the company's IPO presents an interesting opportunity in the industrial sector. As always, potential investors are advised to carefully review the company's prospectus and consider their financial goals before making any investment decisions.
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