Jinkushal Industries Ltd. made an underwhelming debut on the stock market on Friday, listing flat over its IPO price. The share price opened at Rs 125 on the NSE and BSE, compared to the issue price of Rs 121.
Initial Public Offer (IPO) Details
The initial public offer was subscribed 65.01 times on the last day of share sale on Monday, helped by strong participation from non-institutional buyers. The Rs 116.15 crore IPO received bids for 43,75,69,560 shares against 67,21,048 shares on offer, as per BSE data.
Subscription Details
- The quota for Qualified Institutional Buyers (QIBs) was subscribed 35.66 times.
- The non-institutional investors part attracted 146.39 times subscription.
- The Retail Individual Investors (RIIs) portion got subscribed 47.10 times.
Company Profile and Business Verticals
Jinkushal Industries exports new, customised, used, and refurbished construction machines in global markets. It’s the largest non-original equipment manufacturer in construction machinery exports with a 6.9% market share, according to a CareEdge report.
The company operates in three primary business verticals — export trading of customised, modified and accessorised new construction machines; export trading of used/refurbished construction machines; and export trading of our own brand ‘HexL’ construction machines.
Revenue Streams
Jinkushal Industries also earns a small portion of revenue from logistics warehouse leasing and renting of construction machines.
Global Presence and Export House Status
As per information on the draft red herring prospectus, the company has exported construction machines to over 30 countries, including the United Arab Emirates, Mexico, the Netherlands, Belgium, South Africa, Australia, and the UK.
Jinkushal Industries is recognised as a three-star export house by the Directorate General of Foreign Trade.
Utilization of IPO Proceeds
From the proceeds of the IPO, Jinkushal Industries will use up to Rs 72.68 crore for its working capital requirement. The company will use Rs 47.68 crore within the current financial year, and it will engage the rest of the proceeds by financial year 2027.
Investment Strategy and Future Prospects
Indian investors should consider the company’s strong global presence, diverse revenue streams, and plans for future growth. However, it’s essential to analyze the stock’s performance and market trends before making any investment decisions.
For more information on the Indian stock market and investment strategies, please visit our website and explore our investing section.
Conclusion
In conclusion, Jinkushal Industries’ IPO listing has provided Indian investors with a new opportunity to invest in a company with a strong global presence and diverse revenue streams. As the stock market continues to evolve, it’s crucial for investors to stay informed and adapt their investment strategies accordingly.
