Jainik Power And Cables IPO GMP Climbs 6.36%; Issue Booked 0.71 Times On Day 1

Jainik Power and Cables Ltd. launched its initial public offering (IPO) on June 10 to raise over Rs 50 crore from the primary market. The company is in the business of manufacturing aluminium wire rods. Investors interested in this IPO must check the following details before taking an investment call.

The Jainik Power and Cables IPO is a book-building issue worth Rs 51.30 crore, comprising entirely a fresh issuance of 46.63 lakh shares.

Retail investors can participate in the IPO by bidding for a minimum of a single lot size, or 1,200 shares, requiring an investment of Rs 1,32,000. High Net-Worth Individuals (HNIs) need to bid for at least two lots, or 2,400 shares, amounting to an investment of Rs 2,64,000.

The price band for the NSE SME IPO has been set between Rs 100 to Rs 110 per share. 

The Jainik Power and Cables IPO will remain open for subscription from June 10 to June 12. The allotment of shares is proposed to be finalised on June 13. Successful bidders will have the shares credited to their accounts on June 16. Refunds for non-allottees will be initiated on the same day. 

Shares of the company are expected to be listed on the NSE SME platform on June 17.

At least 35% of the net issue is reserved for retail investors. The company has set aside 15% of the net offer size for Non-Institutional Investors (NIIs). The remaining 50% has been reserved for Qualified Institutional Buyers (QIBs).

Fast Track Finsec Pvt. is the book-running lead manager of the Jainik Power and Cables IPO. Skyline Financial Services Pvt. is the registrar and Rikhav Securities Ltd. is the market maker for the issue.

Jainik Power and Cables IPO was subscribed 0.71 times as of 6:55 pm on Tuesday.

• Non-Institutional Buyers: 0.65 times

• Retail Investors: 0.94 times

According to InvestorGain, the grey market premium (GMP) for the Jainik Power and Cables IPO was Rs 7 as of 5:33 p.m. on June 10. As per the latest GMP, the unlisted shares of Jainik Power and Cables IPO were trading at Rs 117 at the grey market, indicating a premium of 6.36%.

Note: GMP does not represent official data and is based on speculation.

Jainik Power and Cables is a manufacturer and supplier of aluminium wire rods. The company was founded in 2011.

Use Of Proceeds

The company has proposed to use proceeds from the IPO to meet working capital requirements, clear debt and for general corporate purposes. 

Financials

The company reported an 84% year-on-year (YoY) increase in profit after tax (PAT) to Rs 9.24 crore in FY25 from Rs 5.02 crore in FY24. Revenue from operations rose 3.86% YoY to Rs 351.7 crore in FY25 from Rs 338.62 crore in FY24.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.