Jinkushal Industries IPO Oversubscribed 5.11 Times on Day 2
Jinkushal Industries' Rs 116.15-crore IPO achieved 5.11 times oversubscription by the second day. Retail investors led with 7.28 times subscription, while institutional buyers showed subdued interest at 4%. The IPO, priced at Rs 115-121 per share, includes a Rs 104 crore fresh issue and Rs 11.61 crore offer for sale. The grey market indicates a 14.05% potential listing gain. As India's largest non-OEM construction machinery exporter with a 7% market share, Jinkushal reported a 59% revenue increase to Rs 381 crore, though EBITDA margin declined. Anand Rathi Research recommends 'Subscribe - Long Term' despite considering the issue fully priced.
*this image is generated using AI for illustrative purposes only.
Jinkushal Industries' Initial Public Offering (IPO) has garnered significant investor interest, achieving 5.11 times oversubscription by the second day of the issue. The Rs 116.15-crore IPO entered its final day with strong momentum, reflecting robust demand from various investor categories.
Subscription Details
The IPO received bids for 3.43 crore shares against the 67.21 lakh shares on offer. Here's a breakdown of the subscription rates across different investor categories:
- Retail Investors: 7.28 times (highest demand)
- Institutional Buyers: 4% (subdued response)
IPO Structure and Pricing
- Total IPO Size: Rs 116.15 crore
- Fresh Issue: Rs 104.00 crore
- Offer for Sale: Rs 11.61 crore
- Price Band: Rs 115-121 per share
Grey Market Premium
The grey market is showing a premium of Rs 17 for Jinkushal Industries' shares, indicating potential listing gains of 14.05%.
Company Overview
Jinkushal Industries holds a prominent position in India's construction machinery export market:
- Largest non-OEM construction machinery exporter in India
- 7% market share in the sector
- Operations span across more than 30 countries
Financial Performance
| Metric | Amount | YoY Change |
|---|---|---|
| Revenue | Rs 381.00 crore | 59% increase |
| EBITDA Margin | 6.10% | Declined from 9.8% |
| Net Profit | Rs 19.00 crore | Stable |
IPO Proceeds Utilization
The funds raised through the IPO will be allocated towards:
- Strengthening working capital
- Supporting general corporate purposes
Analyst Recommendation
Anand Rathi Research has issued a 'Subscribe - Long Term' recommendation for the IPO, despite considering the issue fully priced.
As the IPO enters its final day, the strong oversubscription, particularly from retail investors, suggests significant interest in Jinkushal Industries. However, the subdued response from institutional buyers and the decline in EBITDA margins highlight potential areas of concern for investors to consider.
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