Jinkushal Industries made its debut on the stock exchanges today. The shares of the company was listed at a premium of 3% over the IPO price. The stock will now trade on both the NSE and BSE.
Let’s take a look at the key highlights of this IPO –
Jinkushal Industries IPO: Subscription recap
The IPO was open for bidding between September 25 to 29. Overall, the offer was subscribed 65.10 times according to NSE data.
Breaking it down, non-institutional investors led the demand with subscriptions reaching 146.39 times, while the retail quota was taken up 47 times. Qualified institutional category was subscribed 35 times.
Jinkushal Industries IPO: Allotment details
The allotment of shares was finalised on September 30. By October 1, successful bidders had their shares credited to demat accounts, while refunds were processed for those who did not receive allotments.
Jinkushal Industries IPO: Grey market trend
In the days leading up to the debut, Jinkushal Industries was active in the grey market. The stock was commanding a premium of about Rs 20. This suggests an estimated listing price of around Rs 141 per share. This was nearly 16.5 percent higher than the issue price of Rs 121.
While it is important to understand that grey market trends are unofficial and fluctuates based on market condition.
Jinkushal Industries IPO: Structure and proceeds
The Rs 116 crore issue was a mix of a fresh issue and an offer for sale. The fresh issue comprised 0.86 crore shares worth around Rs 104.54 crore, while the offer for sale included 0.10 crore shares valued at Rs 11.61 crore.
The company plans to use the net proceeds from the fresh issue primarily to meet its working capital needs and for general corporate purposes.
Overview of the company
Jinkushal Industries operates in the export trading business of construction machinery. Its product line includes hydraulic excavators, bulldozers, cranes, wheel loaders, backhoe loaders, soil compactors, motor graders, and asphalt pavers.