Jainik Power Cables Limited, a manufacturer and supplier of aluminum wire rods, is launching its IPO from June 10 to June 12, 2025, aiming to raise ₹51.30 crore. The company began manufacturing aluminum wire rods in 2023, although it has over a decade of experience in trading aluminum rods, marking a significant transition into manufacturing.

The IPO is a Book Built Issue and consists entirely of a fresh issue of 46.63 lakh equity shares. The price band has been fixed between ₹100 to ₹110 per share, with each lot comprising 1,200 shares. The minimum investment required from retail investors is ₹1,32,000, while HNIs need to invest at least ₹2,64,000 (2 lots).

At the upper band of ₹110, the post-issue market capitalization of Jainik Power Cables will be ₹157.82 crore.

The company has appointed Fast Track Finsec Private Limited as the book running lead manager, Skyline Financial Services Private Limited as the registrar, and Rikhav Securities Limited as the market maker.

Grey Market Premium (GMP) and Subscription Status

As of now, Jainik Power Cables IPO's Grey Market Premium (GMP) is ₹0, indicating no expected listing gain. GMP is a reflection of unofficial market sentiment and is not regulated, hence should be taken only for informational purposes.

The subscription status as of 11:30 AM on June 11, 2025 (Day 2) shows the IPO is subscribed only 0.86 times, indicating a lackluster demand so far.

Financial Performance and Growth

Jainik Power Cables has shown a sharp uptick in revenue and profitability over the last three years. Here's a breakdown of the key financials:

Revenue from Operations

• FY2025: ₹35,237.96 lakh

• FY2024: ₹33,923.17 lakh

• FY2023: ₹6,748.72 lakh

• FY2022: ₹6,421.32 lakh

EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization)

• FY2025: ₹1,468.95 lakh

• FY2024: ₹872.46 lakh

• FY2023: ₹145.97 lakh

• FY2022: ₹131.64 lakh

Profit After Tax (PAT)

• FY2025: ₹923.60 lakh

• FY2024: ₹501.86 lakh

• FY2023: ₹14.66 lakh

• FY2022: ₹6.40 lakh

The company has demonstrated an exceptional growth trajectory, especially after entering manufacturing in 2023. However, this rapid increase could also be early-cycle performance, and future consistency is yet to be seen.

Valuation Metrics

Jainik Power Cables' IPO pricing reflects aggressive valuation compared to its peer group:

• 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

While growth is commendable, a P/E of 17.09x vs an industry average of 8.00x suggests that the IPO is fully priced or even overvalued.

Return Ratios

• ROCE (Return on Capital Employed): 55.92%

• ROE (Return on Equity): 56.92%

• RoNW (Return on Net Worth): 56.92%

These are impressive metrics, showing the company’s efficient capital allocation and strong profitability. However, these numbers are based on recent explosive growth, which may not be sustainable.

Utilization of IPO Proceeds

The company intends to use the net proceeds of the IPO in the following manner:

1. ₹2,350 lakh for working capital requirements

2. ₹1,099 lakh for setting up a new plant

3. ₹500 lakh for loan repayment

4. Balance for general corporate purposes and issue-related expenses

This indicates a clear operational focus, with a significant portion going towards business expansion and strengthening of the balance sheet.

Leadership and Management

The company is spearheaded by Mr. Shashank Jain (Managing Director) and Mr. Prateek Jain (Director). Together, they bring over 32 years of cumulative experience in the metal industry. Their involvement spans from production and process planning to finance and marketing, ensuring hands-on leadership.

IPO Timetable

• IPO Open Date: June 10, 2025

• IPO Close Date: June 12, 2025

• Basis of Allotment: June 13, 2025 (Friday)

• Initiation of Refunds: June 16, 2025

• Credit to Demat Accounts: June 16, 2025

• Listing Date on NSE SME: June 17, 2025 (Tuesday)

Allotment Status – How to Check

To check your Jainik Power Cables IPO allotment status:

1. Visit the registrar's website (Skyline Financial Services).

2. Choose Jainik Power Cables IPO from the dropdown.

3. Enter your PAN, Application Number, or DP Client ID.

4. Click Submit to view allotment details.

Final Verdict – Apply or Avoid?

While Jainik Power Cables has shown strong revenue and profit growth, the IPO appears to be fully valued based on the post-issue P/E ratio of 17.09x. Furthermore, Grey Market Premium is ₹0, indicating no visible excitement or listing gain expectations.

The subscription rate on Day 2 is only 0.86x, showing tepid investor interest.

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.

The Upcoming IPOs in this week and coming weeks are Eppeltone Engineers, Aten Papers, Patil Automation, Oswal Pumps, Samay Projects Services, Monolithisch India.

The Current active IPO are Jainik Power Cables, Sacheerome Limited.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

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