Jinkushal Industries IPO Oversubscribed 65.11×; Listing Set for Oct 3

When Jinkushal Industries Ltd. wrapped up its three‑day IPO on September 29, 2025, the issue was oversubscribed 65.11 times, startling even seasoned market observers.

The Jinkushal Industries Initial Public OfferingIndia opened on Thursday, September 25, and closed on Monday with bids for roughly 437.56 million shares against the 6.72 million on offer. The company, based in Raipur, Chhattisgarh, will list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Friday, October 3, 2025.

Background: Jinkushal Industries and Its Market Reach

Jinkushal Industries is a specialist exporter of construction machinery – hydraulic excavators, backhoe loaders, motor graders, concrete mixer trucks and soil compactors – to about 30 countries. About 75 % of its recent Rs 380 crore revenue comes from Mexico, with the UAE, United Kingdom, Netherlands and Australia rounding out the export basket. The top five clients together account for three‑quarters of sales, underscoring a tight customer concentration.

IPO Mechanics: Size, Pricing, and Investor Appetite

The issue size totals Rs 116.15 crore, split between a fresh issue of Rs 104.54 crore and an Offer‑for‑Sale (OFS) of Rs 11.61 crore by existing promoters. The price band was set at Rs 115‑121 per share, implying a market‑cap of roughly Rs 464 crore and a 25 % dilution for current shareholders.

Investor interest spanned every category. Non‑Institutional Investors (NIIs) subscribed 146.39 times their allocation, retail investors came in at 47.10 times, and Qualified Institutional Investors (QIIs) booked 35.66 times. As Ramesh Singh, market analyst at Axis Securities, put it, “The subscription multiples reflect a rare blend of export‑oriented growth narrative and attractive valuation.”

Allotment, Listing, and Grey Market Activity

Allotment will be finalized on Tuesday, September 30, 2025. Investors can check their status on the official portals of BSE, NSE and the registrar, Bigshare Services, which is working alongside MUFG Intime India.

Ahead of listing, the shares have been trading in the grey market at a 16‑17 % premium to the issue price – roughly Rs 20 per share – a steep drop from the 42 % premium floated a week earlier. “The GMP correction suggests that investors are tempering expectations as they digest the financials,” notes Neha Patel, senior broker at Kotak Securities.

Financial Snapshot and Valuation Implications

Jinkushal posted a Return on Equity (ROE) of 28.30 % for the March 2025 quarter, down from 55.19 % a year earlier but still well above the industry average. Return on Capital Employed (ROCE) fell to 18.39 % from 29.44 % in the same period last year. Earnings per share (EPS) slipped marginally to Rs 6.15 from Rs 6.27 a year ago, while the pre‑IPO price‑to‑earnings ratio sat at 18.8. Post‑IPO, the P/E is expected to settle around 24.26, reflecting the higher share count – from 29,746,000 to 38,396,000 – and the diluted promoter stake (down from 99 % to 74 %).

Analysts are debating whether the valuation comfortably incorporates the company’s reliance on Mexico, which accounts for three‑quarters of its turnover. “A slowdown in Mexican infrastructure spend could pinch Jinkushal’s top line,” warns Vikram Joshi of Motilal Oswal.

What Investors Should Watch Going Forward

• Execution of working‑capital plans: the fresh issue earmarks Rs 73 crore for working capital – crucial for fulfilling export orders.
• Currency exposure: with most revenue in US dollars, rupee fluctuations will affect margins.
• Diversification of the client base: breaking the 75 % concentration will be a key strategic priority.
• Regulatory landscape: any changes in India’s export‑policy regime could impact cost structures.

The lot size was set at 120 shares, meaning retail investors needed a minimum outlay of Rs 13,800 (at the top of the band). Those who secured an allotment can look forward to potential upside if the company's expansion into new geographies bears fruit.

Key Takeaways

• IPO oversubscription: 65.11 × overall, with NIIs leading at 146.39 ×.
• Grey Market Premium: currently 16‑17 % (≈Rs 20 per share).
• Listing date: October 3, 2025 on BSE and NSE.
• Promoter holding post‑IPO: 74 % (down from 99 %).
• Market cap post‑issue: about Rs 464 crore.

Frequently Asked Questions

How can investors verify their IPO allotment?

Allotment details will be posted on the official websites of the Bombay Stock Exchange, the National Stock Exchange, and the registrar – Bigshare Services – on September 30, 2025. Investors can also receive SMS alerts if they provided a mobile number during application.

What does the Grey Market Premium indicate for new shareholders?

A 16‑17 % GMP suggests that secondary‑market participants are willing to pay a modest premium over the issue price, reflecting optimism about Jinkushal’s growth prospects while also signaling that earlier, higher premiums may have been over‑hyped.

Why is the company’s reliance on Mexico a risk factor?

Mexico accounts for about 75 % of Jinkushal’s Rs 380 crore revenue. Any slowdown in Mexican construction spending, currency devaluation, or changes in trade policy could materially affect the firm’s top line and cash flows.

What are the tax implications of the OFS component?

The Offer‑for‑Sale (OFS) of Rs 11.61 crore involves existing promoters selling shares directly to the public. Sellers may incur capital gains tax on any profit, while buyers treat the shares like any other listed security after the listing date.

When will the shares start trading on the stock exchanges?

Trading under the ticker “JINKU” commences on the BSE and NSE at 9:15 a.m. IST on October 3, 2025, following the standard settlement cycle.