Mumbai, Oct 3 Jinkushal Industries Limited had a lacklustre debut on the Indian stock market on Friday, as its shares slipped into the 5 per cent lower circuit despite opening with a small premium.
The stock got listed at Rs 125 per share on both the BSE and NSE, about 3.3 per cent higher than its issue price of Rs 121.
After listing, the stock briefly gained 2.5 per cent and touched an intra-day high of Rs 128 on the BSE.
However, the gains did not last long. Selling pressure at higher levels dragged the stock down more than 7 per cent from the day’s peak, and by the afternoon, it was locked at the 5 per cent lower circuit of Rs 118.75.
At this level, the shares were down nearly 5 per cent from their listing price and about 1.85 per cent below the issue price.
The muted debut came as a disappointment for investors who had expected stronger gains.
The grey market premium (GMP) had earlier indicated a possible listing pop of Rs 17–21 per share, which pointed towards double-digit gains.
Jinkushal Industries had seen strong investor interest during its IPO, which was open from September 25 to 29.
The issue was subscribed 65.10 times, led by robust demand from non-institutional investors.
The Qualified Institutional Buyers’ (QIBs) portion was subscribed 35.66 times, while the non-institutional investors’ segment attracted a massive 146.39 times subscription. Retail investors subscribed 47.10 times.
The IPO was a book-built issue worth Rs 116.15 crore, comprising a fresh issue of 86 lakh shares that raised Rs 104.54 crore, along with an offer-for-sale (OFS) of 10 lakh shares worth Rs 11.61 crore.
From the proceeds, the company plans to use Rs 72.68 crore to meet its working capital needs, with Rs 47.68 crore to be deployed within this financial year and the remaining by FY27.
Jinkushal Industries operates across three business verticals -- export trading of customised and accessorised new construction machines, export trading of used and refurbished construction machines, and trading of its own brand of construction machines under the name ‘HexL’.
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