Is a small IPO about to make a big splash? That is the question investors are asking as Jinkushal Industries hits the primary market today, September 25. The construction machinery exporter is opening a modest-sized issue, but what is turning heads is its rising grey market premium (GMP). With bidding open till September 29, here are five things you cannot afford to miss about this IPO.
Jinkushal Industries IPO: What is on offer?
A mainboard issue, the company plans to raise about Rs 116.15 crore through a mix of a fresh issue and an offer for sale (OFS). Out of this, the fresh issue will bring in funds for working capital needs and general corporate purposes, while the OFS gives early stakeholders a chance to offload part of their holdings.
The price band is set between Rs 115-121 per share, with investors able to apply for a minimum of 120 shares. At the upper end of the band, the entry ticket works out to Rs 14,520 per lot.
Jinkushal Industries IPO: GMP climbs ahead of listing
The grey market premium (GMP) is where most of the chatter lies. According to latest available updates, the GMP for Jinkushal Industries is hovering around Rs 42 per share. That implies a potential listing at Rs 163. This is nearly 35% above the issue price.
However, it is also crucial to note that GMP is not an official indicator of the listing price and it fluctuates based on the market sentiment.
Jinkushal Industries IPO: Who gets what – Reservation break-up
The issue follows the standard allocation structure –
- 50% reserved for QIBs (Qualified Institutional Buyers)
- 15% set aside for NIIs (Non-Institutional Investors)
- 35% placed for retail investors
Jinkushal Industries IPO: Allotment and listing schedule
Following SEBI’s T+3 listing framework, shares of Jinkushal Industries are expected to debut on the NSE and BSE on October 3. Allotments will be finalised on September 30, with refunds and credit of shares in demat accounts happening by October 1.
The business behind the IPO
Jinkushal Industries specialises in exporting new, customised, used, and refurbished construction machines. Its footprint spans across 30 countries, including the UAE, Mexico, the Netherlands, South Africa, Australia, and the UK.
Financially, the company’s revenue climbed from Rs 233.45 crore in FY23 to Rs 380.6 crore in FY25, while profits rose from Rs 10.12 crore to Rs 19.14 crore in the same period.