⁠Jinkushal Industries IPO GMP: What Does Grey Market Signal As Mainboard Issue Gets Fully Subscribed

Jinkushal Industries Ltd. launched its initial public offering (IPO) on Thursday, September 25 and was fully subscribed on its first day.

The IPO was booked 3.95 times as of 1:27 p.m. on Friday with investors bidding for 2,65,63,080 shares against the 67,21,048 on offer.

The company, an export trading firm specialising in construction machinery, has a presence in over 30 countries, including the UAE, Mexico, the Netherlands, Belgium, South Africa, Australia and the UK.

The grey market premium for the mainboard issue continues to be in news after getting fully subscribed on Thursday.

Here’s a look at the grey market premium (GMP) and other details of the Jinkushal Industries IPO as subscription enters second day.

The grey market premium (GMP) of Jinkushal Industries IPO was Rs 21 as of 12:30 p.m. on September 26. With the upper end of the price band at Rs 121, the IPO’s estimated listing price is Rs 142 (cap price plus today’s GMP), implying a potential gain of around 17.36% per share.

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

The Jinkushal Industries IPO is a book-built issue of Rs 116.15 crore. It comprises a fresh issue of 86 lakh shares, raising Rs 104.54 crore, and an offer-for-sale component of 10 lakh shares, valued at Rs 11.61 crore.

The price band for the IPO is set between Rs 115 to Rs 121 per share.

The IPO was booked over 2 times on Thursday, led by demand from retail investors who bid 3 times the number of shares offered.

The minimum application lot consists of 120 shares, requiring a retail investor to invest Rs 14,520 at the upper end of the price band.

The Jinkushal Industries IPO will close on Monday, September 29. The allotment is scheduled for Tuesday, September 30. Refunds to unsuccessful applicants and the credit of shares to the demat accounts of successful bidders are expected on Wednesday, October 1.

The IPO is tentatively set to list on the BSE and NSE on Friday, October 3.

GYR Capital Advisors Pvt. Ltd. is the book-running lead manager for the IPO, while Bigshare Services Pvt. Ltd. has been appointed as the registrar of the issue.

Founded in November 2007, Jinkushal Industries Ltd. operates in three main areas. It exports customised and modified new construction machines tailored to client needs. It trades used and refurbished machines, offering cost-effective, quality-checked alternatives. The company also sells construction machines under its own brand, HexL.

Jinkushal Industries Ltd. intends to use the net proceeds from its IPO primarily to meet its working capital needs. In addition, a portion of the funds will be allocated for general corporate purposes.

Jinkushal Industries Ltd. reported a total income of Rs 385.81 crore for the financial year ending March 31, up from Rs 242.80 crore in the previous year. This marked a 59% increase year-on-year (YoY). Profit after tax (PAT) rose to Rs 19.14 crore in the fiscal year ended March 31, compared to Rs 18.64 crore, a growth of 3% YoY.

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.