Jainik Power Cables Limited has launched its Initial Public Offering (IPO) consisting entirely of a fresh issue of 46.63 lakh shares aggregating to ₹51.30 Crores. The IPO opens for subscription on June 10, 2025, and closes on June 12, 2025. The allotment will be finalized around June 13, 2025, and the shares are expected to list on the NSE SME platform tentatively on June 17, 2025.

Company Background and Business

Jainik Power Cables is engaged in the manufacturing of aluminum wire rods since 2023. Before manufacturing, the company operated in the trading of aluminum rods for over a decade, gaining extensive industry experience. The company emphasizes quality manufacturing practices and adheres strictly to Environmental, Health, and Safety (EHS) standards, holding ISO certifications for compliance.

The company is promoted by Mr. Shashank Jain (Managing Director) and Mr. Prateek Jain (Director), who collectively have around 32 years of experience in the metal industry. They oversee business expansion, plant operations, finance, sales, and marketing.

IPO Details

• Issue Size: ₹51.30 Crores (Fresh issue)

• Number of Shares: 46.63 lakh equity shares

• Price Band: ₹100 to ₹110 per equity share

• Lot Size: 1,200 shares

• Minimum Retail Investment: ₹1,32,000

• Minimum HNI Investment: 2 lots (2,400 shares), ₹2,64,000

• Post-Issue Market Capitalisation: ₹157.82 Crores (at ₹110/share)

FAST TRACK FINSEC PRIVATE LIMITED is the Book Running Lead Manager, and SKYLINE FINANCIAL SERVICES PRIVATE LIMITED is the Registrar. Rikhav Securities Limited serves as the Market Maker.

Grey Market Premium (GMP)

The Grey Market Premium for Jainik Power Cables IPO is ₹0, indicating no premium or discount expected before listing. As GMP reflects unregulated market sentiments, no real price discovery can be concluded from it. Investors should not rely solely on GMP for investment decisions.

Subscription Status

The IPO opens on June 10, 2025, and subscription updates will be available live from that date.

IPO Allotment Process and Status Check

• Allotment expected on June 13, 2025

• Investors can check allotment by visiting the registrar’s IPO allotment page

• Select Jainik Power Cables Limited IPO

• Enter PAN / Application Number / DP Client ID

• Submit to view allotment status

Use of IPO Proceeds

The company plans to utilize the net proceeds for:

1. ₹23.50 Crores towards working capital requirements

2. ₹10.99 Crores for setting up a new plant

3. ₹5.00 Crores for partial loan repayment

4. General corporate purposes

5. IPO issue expenses

Financial Performance Highlights (₹ Lakhs)

The company has demonstrated steady and impressive growth in revenue and profitability, especially in recent years.

Key Financial Ratios

• Pre-Issue EPS (FY24): ₹9.99

• Post-Issue EPS (FY24): ₹6.44

• Pre-Issue P/E: 11.01x

• Post-Issue P/E: 17.09x

• Industry Average P/E: 8.00x

• ROCE (FY24): 55.92%

• ROE (FY24): 56.92%

• RoNW (FY24): 56.92%

The IPO is priced on the higher side relative to industry P/E, reflecting premium valuation due to strong returns.

Jainik Power Cables IPO Review

Jainik Power Cables has a solid footing in the aluminum wire rod manufacturing sector with over a decade’s experience. Its ISO certifications and compliance with EHS norms enhance its credibility. The leadership team’s experience and the company’s rapid growth in revenue and profit are positives.

However, the IPO valuation appears fully priced, and the Grey Market Premium shows no expected listing gains. Thus, investors seeking quick listing profits are advised to avoid this IPO. Long-term investors with confidence in the company’s expansion and sector outlook may consider participation after thorough due diligence.

Disclaimer

This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

About the Author

CA Abhay Kumar (CA Abhay Varn) is a qualified Chartered Accountant and a SEBI Registered Research Analyst (Registration Number: INH300008465) with over 8 years of experience in stock market research and analysis.

The Upcoming IPOs in this week and coming weeks are Oswal Pumps,Samay Projects Services, Monolithisch India, Jainik Power Cables.

The Current active IPO are Sacheerome Limited.

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