Jinkushal Industries IPO Launches with Reduced Grey Market Premium
Jinkushal Industries, a construction machinery export trading company, has opened its IPO with a price band of Rs 115-121 per share. The IPO comprises a fresh issue of 86 lakh shares and an offer-for-sale of 10 lakh shares. The grey market premium has dropped from Rs 51 to Rs 21. The IPO opens on September 25 and closes on September 29, with listing scheduled for October 3 on BSE and NSE. The company reported a 59% increase in total income for FY 2023, reaching Rs 385.81 crore. Funds will be used for working capital and general corporate purposes.
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Jinkushal Industries, a construction machinery export trading company, has launched its Initial Public Offering (IPO) amidst fluctuating grey market premiums. The IPO, valued at Rs 116.15 crore, comes with a price band of Rs 115-121 per share.
Grey Market Premium Decline
The grey market premium for Jinkushal Industries' shares has seen a significant drop, falling from Rs 51 to Rs 21 at the time of the IPO launch. This decline in the unofficial premium indicates a shift in market sentiment just before the official opening of the public issue.
IPO Details
The public issue comprises two components:
- A fresh issue of 86 lakh shares, amounting to Rs 104.54 crore
- An offer-for-sale of 10 lakh shares, worth Rs 11.61 crore
For retail investors, the minimum investment required is Rs 14,520.
Key Dates
- IPO Opening Date: September 25
- IPO Closing Date: September 29
- Share Allotment Date: September 30
- Listing Date: October 3 (on both BSE and NSE)
Company Performance
Jinkushal Industries has shown robust growth in its recent financial performance:
| Metric | FY 2023 | FY 2022 | Growth |
|---|---|---|---|
| Total Income | Rs 385.81 crore | Rs 242.80 crore | 59.00% |
| Profit After Tax | Rs 19.14 crore | Rs 18.64 crore | 3.00% |
The company operates in over 30 countries, showcasing its strong international presence in the construction machinery export trading sector.
Utilization of Funds
The proceeds from the IPO will be primarily used for:
- Meeting working capital requirements
- General corporate purposes
As Jinkushal Industries steps into the public market, investors will be closely watching its performance, especially given the recent fluctuations in its grey market premium. The success of this IPO could provide insights into the current appetite for new listings in the construction and export sectors.
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