Introduction:
Jinkushal Industries Limited, a leading exporter of customized and refurbished non-OEM construction machinery with a 6.9% market share in India, has garnered strong investor interest in its initial public offering (IPO), which opened for subscription on September 25, 2025, and achieved 2.2 times oversubscription on Day 1. The Grey Market Premium (GMP) for the IPO is currently at ₹21 as of September 26, 2025, signaling an estimated listing price of ₹142 per share-representing a 17.36% premium over the upper price band of ₹121. This unofficial indicator from the grey market reflects positive sentiment, particularly from retail and non-institutional investors (NIIs), who subscribed 3.28 times and 3.02 times respectively, while qualified institutional buyers (QIBs) remained cautious at 0.02 times.
The book-built IPO, priced in the band of ₹115 to ₹121 per share, comprises a fresh issue of ₹81.15 crore (66.90 lakh shares) to fund working capital and general corporate purposes, alongside an offer for sale (OFS) of ₹35 crore (28.93 lakh shares) by promoters. On September 24, 2025, the company raised ₹35 crore from 12 anchor investors, including Nomura Singapore (₹7.5 crore), HDFC Mutual Fund (₹5 crore), and Viney Growth Fund (₹4 crore), as per BSE filings. With a lot size of 120 shares (minimum investment ₹14,520 for retail), the issue closes on September 29, 2025, with allotment on September 30 and tentative listing on October 3, 2025, on BSE and NSE. Jinkushal Industries, incorporated in 2007 and operating in over 30 countries, reported a 60% revenue surge to ₹385.8 crore and PAT growth to ₹19.14 crore in FY25, driven by its asset-light model and focus on refurbished machinery. Why does this matter? In a capital-intensive sector with growth projected at 12% CAGR, the IPO offers exposure to India's export-led machinery trade, though analysts caution on margin pressures and competition. This article provides a detailed overview of the GMP trends, subscription status, financials, analyst recommendations, and investment rationale for this ₹116.15 crore issue.
GMP Trends: From ₹22 to ₹21 – Grey Market Signals
The Grey Market Premium (GMP) for Jinkushal Industries IPO has shown volatility since the pre-open phase, starting at ₹22 on September 25, 2025 (Day 1), and settling at ₹21 on September 26, 2025, as per InvestorGain and Chittorgarh. This translates to an estimated listing price of ₹142 (upper band ₹121 + GMP ₹21), indicating a potential 17.36% gain for allottees. GMP, an unofficial barometer of demand in the unlisted shares market, is calculated based on informal trades and can fluctuate daily.
- September 25 (Day 1): GMP ₹22 (18.18% premium), amid 2.2x subscription.
- September 26 (Day 2): GMP ₹21 (17.36%), holding steady with NII momentum.
While GMP suggests a positive debut, experts like Dilip Davda (Chittorgarh) warn it's volatile and not a guaranteed predictor. The current 17% premium aligns with similar IPOs like Trualt Bioenergy (16% GMP).
Subscription Status: Day 1 Oversubscription at 2.2 Times
Jinkushal Industries IPO opened strongly on September 25, 2025, achieving 2.2 times subscription by end of Day 1, with bids for 2.69 crore shares against 1.23 crore offered, as per NSE data. Breakdown:
- Retail Individual Investors (RII): 3.28 times (35% quota).
- Non-Institutional Investors (NII): 3.02 times (15% quota).
- Qualified Institutional Buyers (QIBs): 0.02 times (50% quota, excluding anchors).
Anchor investors committed ₹35 crore on September 24, 2025, to 12 institutions, including Nomura Singapore (₹7.5 crore), HDFC Mutual Fund (₹5 crore), and Viney Growth Fund (₹4 crore). Day 2 updates (as of 10:30 AM IST, September 26) show sustained interest, with overall subscription at 2.5 times, per LiveMint. The minimum lot size is 120 shares (₹14,520 at upper band), making it accessible for retail investors.
Company Profile: Jinkushal Industries Limited
Incorporated in November 2007 by Pratik Gunvantraj Singhvi and Jai Gunvantraj Singhvi, Jinkushal Industries is India's largest non-OEM exporter of construction machinery, holding a 6.9% market share in FY24. The company operates an asset-light model, trading new customized machines and refurbished ones across three segments: exports (70% revenue), domestic sales, and after-sales services. It serves over 30 countries, including UAE, Mexico, Belgium, and South Africa, with a network of 180 distributors.
Key metrics:
- Revenue (FY25): ₹385.8 crore (+60% YoY).
- PAT (FY25): ₹19.14 crore (+3% YoY).
- EBITDA Margin: 8.5%.
- ROE: 18.2%; ROCE: 22.4%.
- Order Book: ₹200 crore (as of June 2025).
Proceeds will fund working capital (₹80 crore) and general purposes, enhancing export capabilities.
Financial Performance: Strong Growth with Margin Challenges
Jinkushal's FY25 results reflect robust expansion:
- Revenue: ₹385.8 crore (vs. ₹238.6 crore FY24, +62%).
- PAT: ₹19.14 crore (vs. ₹18.6 crore FY24, +3%).
- Total Income: ₹391.5 crore (+58% YoY).
- P/E Ratio (Post-IPO): 32.9x at upper band.
Growth driven by refurbished machinery (40% revenue) and exports (70%), but margins dipped to 5% PAT due to forex volatility (55% purchases in foreign currency). Compared to peers like GMM Pfaudler (P/E 45x) and Elecon Engineering (P/E 38x), valuation is reasonable, per LiveMint.
Analyst Recommendations: Subscribe for Long-Term
- SBI Securities: "Subscribe; strong export model, 60% revenue growth, but monitor margins."
- BP Equities: "Long-term positive; GMP ₹21 signals 17% gain, asset-light scalability."
- Dilip Davda (Chittorgarh): "Fully priced but solid fundamentals; apply for listing gains."
Risks: Forex exposure, competition from OEMs. Opportunities: 12% sector CAGR, international expansion.
Potential Impacts: On Investors and Machinery Sector
For investors, ₹21 GMP hints at ₹17,040 gain per lot (120 shares); long-term, 20% returns from growth. For the sector, it boosts non-OEM exports (₹10,000 Cr market), creating jobs. Risks: GMP volatility; opportunities: Global trade amid infrastructure boom.
Conclusion: Promising Debut with Steady GMP
Jinkushal Industries IPO's GMP of ₹21 on September 26, 2025, amid 2.2x Day 1 subscription, signals a solid listing on October 3. With 60% revenue growth and export focus, it's a buy for long-term machinery exposure. Apply via ASBA-track on nuvexic.com.
FAQ
What is Jinkushal IPO GMP today?
₹21 (17.36% premium).
Subscription on Day 1?
2.2 times overall.
Listing date?
October 3, 2025.
Price band?
₹115-₹121.
Should I invest?
Analysts say subscribe for long-term.