When Jinkushal Industries Limited opened its initial public offeringRaipur on September 25, investors were met with a 65‑times oversubscription, ultimately raising ₹116.11 crore. The issue, priced between ₹115 and ₹121 per share, was set to list on both BSE and NSE on October 3, 2025. The stakes were high: a fresh issue of ₹104.54 crore for working capital and an offer‑for‑sale of ₹11.61 crore that would cut promoter holdings from 99 % to 74 %.
IPO Overview and Pricing
In plain terms, the company offered 9,59,548 shares, each with a face value of ₹10, packaged in a lot of 120 shares. That meant the smallest retail investor needed ₹14,520 – a figure that many middle‑class savers could manage. The retail cap of 1,560 shares (₹188,760) was designed to broaden participation, yet the demand surged far beyond that, a clear signal that the market is hungry for exposure to the construction‑machinery export segment.
Subscription Highlights and Investor Response
Here's the thing: the subscription ball‑park was astonishing. Institutional investors took up about 90 % of the allocation, while retail demand hit a jaw‑dropping 65 times the available shares. The final issue price band of ₹115‑₹121 translated to a market‑cap of roughly ₹464 crore post‑listing – a 25 % dilution that the promoters seemed comfortable with, given the cash inflow.
Company Profile and Market Concentration
Jinkushal specializes in exporting hydraulic excavators, backhoe loaders, motor graders, concrete‑mixer trucks, and soil compactors to 30 countries. Oddly enough, three‑quarters of its ₹380 crore revenue comes from Mexico, with the UAE, United Kingdom, Netherlands and Australia rounding out the rest. The top five clients account for 75 % of sales – a classic case of client and geographic concentration risk that investors will now scrutinize.
Management Team and Governance
Leadership is a family affair, but each member brings a distinct skill set. Sandhya Jain, Admin Head of Jinkushal Industries Limited, has been with the firm since 2009 and oversees CSR, HR, compliance and internal controls. Tithi Jain, Research & Data Analysis Head joined in 2019; her background in computer science fuels market‑research and lead‑generation strategies. Finally, Yashasvi Jain, Media & Marketing Head drives digital campaigns and warehouse design. Their combined experience—spanning administration, tech‑driven research and creative marketing—paints a picture of a team trying to diversify beyond a single market.
Financial Allocation and Working Capital Use
The fresh issue of ₹104.54 crore is earmarked for working‑capital needs, chiefly to upgrade production lines, settle supplier dues and fund an expansion of the dealer network in emerging markets. A modest ₹73 crore of that is earmarked for short‑term operating expenses, while the remainder will underwrite capital expenditure on new tooling for compactors and excavators.
Meanwhile, the offer‑for‑sale component of ₹11.61 crore by promoters offers a tidy exit route for early stakeholders, thereby improving the free‑float and potentially stabilising share price post‑listing.
Listing and Future Outlook
All eyes are now on the basis of allotment, set for September 30, 2025. Refunds start on October 1, and shares credit on the same day. The official listing on BSE and NSE follows on October 3, giving the market a fresh conduit to a niche export sector. Analysts suggest that, if the company can broaden its customer base beyond Mexico, the IPO proceeds could act as a catalyst for a strategic push into Africa and Southeast Asia, regions where infrastructure spending is projected to rise by double‑digit percentages over the next five years.
But wait, the road ahead isn’t all smooth. Concentrated revenue streams mean any trade‑policy shift in Mexico or a slowdown in construction could hit earnings hard. The management’s promise of diversification, backed by fresh capital, will be the litmus test investors watch during the next earnings season.
Key Facts
- IPO size: ₹116.11 crore (₹104.54 crore fresh issue, ₹11.61 crore OFS)
- Subscription: 65× overall demand
- Price band: ₹115‑₹121 per share
- Market cap post‑listing: ~₹464 crore
- Listing date: 3 October 2025 (BSE & NSE)
Frequently Asked Questions
How does the IPO impact existing shareholders?
Promoters will see their holding dip from 99 % to about 74 % after the offer‑for‑sale. This dilution lowers control but increases free‑float, potentially stabilising share price and attracting institutional investors.
What risks are associated with the company's revenue concentration?
Around 75 % of revenue comes from Mexico and the top five clients. Any slowdown in Mexican construction spending or loss of a major client could materially affect earnings, making diversification critical.
When will investors receive allotment results?
The basis of allotment is scheduled for 30 September 2025. Refunds and share credit will follow on 1 October, with trading commencing on 3 October.
What will the fresh issue capital be used for?
Approximately ₹73 crore is earmarked for working‑capital needs—paying suppliers and financing inventory—while the remainder funds plant upgrades and expansion of the dealer network in new geographies.
How might the IPO affect the Indian construction‑machinery export sector?
A successful listing could encourage other mid‑size exporters to tap the capital markets, boosting sector visibility. It also signals investor appetite for niche B2B exporters with strong overseas footprints.