Should You Invest in Jinkushal Industries IPO: Subscription Trends, GMP, and Key Takeaways

Jinkushal Industries Limited, India’s largest exporter of non-OEM construction machines with a 6.9% market share, is tapping the primary markets with its ₹116.15 crore issue. The IPO, open from September 25 to 29, 2025, is priced in a band of ₹115–₹121 per share with a lot size of 120 shares.

On the first day, the IPO drew solid investor interest, subscribed 2.29 times overall. Retail participation led with 3.28 times subscription, followed by Non-Institutional Investors at 3.02 times, while QIB demand stayed muted at 0.02 times. The GMP held steady at ₹21, the same as a day before, hinting at a potential listing gain of around 17%. This shows enthusiasm among retail and HNI investors, even as institutional appetite builds slowly.

In this piece, we look at the company’s fundamentals, strengths, challenges, peer comparison, valuation, promoter background, and industry outlook to help investors assess the IPO objectively.

IPO Overview

• IPO Date: September 25 to September 29, 2025
• Total Issue Size: ₹116.15 crore
• Price Band: ₹115 to ₹121 per share
• Lot Size: 120 Shares
• Tentative Allotment Date: September 30, 2025
• Listing Date: October 3, 2025 (Tentative)
• GMP: The GMP for Jinkushal Industries IPO is ₹21, reflecting a 17.36% gain over the issue price, according to Chittorgarh.com (as of September 26).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Highlight of Day 1 of the IPO

Jinkushal Industries IPO ended Day 1 with a solid 2.29 times subscription. Retail investors drove momentum with 3.28 times while Non-Institutional Buyers followed at 3.02 times; QIBs stayed cautious at just 0.02 times. Meanwhile, the Grey Market Premium (GMP) held steady at ₹21, suggesting a likely 17% listing gain if demand sustains in the coming days.

What Does Jinkushal Industries Do?

In simple terms, Jinkushal buys and sells construction machines - both new and used. It works in three verticals:

• Exporting customized new construction machines like excavators, graders, loaders, and cranes.
• Exporting used or refurbished machines that it repairs and sells at a lower price compared to new models.
• Selling its in-house ‘HexL’ brand equipment, now focused on backhoe loaders, which it launched in December 2024.

Its business depends almost entirely on exports - 99% of FY25 sales came from outside India - and it serves over 30 countries across the Middle East, Europe, Africa, Australia, and North America. The company largely caters to contractors, rental companies, and distributors who need cost-effective alternatives to expensive OEM models.

Objectives of the IPO

The money raised from the issue will be primarily used for working capital needs and other general purposes. The split is as follows:

• ₹72.67 crore: To meet long-term incremental working capital needs (the business runs on high receivables and requires large upfront capital to manage sales).
• Balance proceeds: General corporate purposes such as marketing, paying off debt, and funding routine business needs.
• ₹11.61 crore OFS: Goes directly to selling shareholders and does not add to company funds.

Strengths:

• Market leadership: Largest non-OEM exporter of construction machines, holding a 6.9% market share.
• High return efficiency: ROE of 29.6% in FY25; meaning it generated ₹29.6 on every ₹100 investors put into the business.
• Fastest growth among peers: Revenue growth CAGR of 27.7% between FY23–FY25, higher than peers including ACE and VIESL.
• Diversified exports: Strong global presence in over 30 countries.
• Refurbished machine model: Surging demand from international customers due to lower costs and sustainability - 34.6% of FY25 revenue came from refurbished sales.

Risks:

• Extreme customer dependence: Top 5 customers contributed 75.1% of FY25 sales; losing any could significantly hurt the business.
• Export concentration: 99.18% of revenue comes from outside India, making it very sensitive to global trade policies or currency fluctuations.
• Weak profitability vs peers: EBITDA margin at 7.5% and PAT margin at 5% trails competitors.
• Credit risk: Trade receivables of over ₹102 crore (more than one-fourth of sales) with increasing delays; receivable days at 78.
• New HexL brand is still untested: Only 40 machines supplied so far. Competing with global OEM brands takes time and reputation.
• High attrition: 31% staff attrition in FY25, particularly among skilled operational roles.

For detailed information, visit Jinkushal Industries’ IPO page.

Peer Comparison

The company’s listed peers include Action Construction Equipment and Vision Infra Equipment Solutions.

• Revenue in FY25: Jinkushal ₹381 crore vs ACE ₹3,327 crore vs VIESL ₹443 crore - much smaller scale.
• EBITDA Margin: Jinkushal 7.5% vs ACE 15.2% vs VIESL 28.7% - lowest profitability.
• PAT Margin: Jinkushal 5% vs ACE 11.9% vs VIESL 7.5% - lags on net margins.
• Debt-Equity: Jinkushal 0.6x vs ACE nearly debt-free (0.01x) vs VIESL higher risk at 1.7x.
• Valuation: Jinkushal Post-IPO P/E 24.3x vs ACE 31.2x vs VIESL 10.9x - positioned in the mid-range, with growth premiums priced in.

Source: RHP, internal calculation

Its relatively smaller revenue and profit are small compared to competitors because ACE operates in the broader construction equipment manufacturing sector and holds a majority market share in segments like Mobile Cranes, operating on a much larger overall scale. The company's market leadership is specific to the non-OEM export niche.

IPO Valuation

At the upper band of ₹121 per share, Jinkushal’s post-IPO market cap is estimated at ₹464 crore.

• Pre-IPO P/E: 19.7x (reasonable vs industry at 21.1x).
• Post-IPO P/E: 24.3x (higher than industry average), reflecting premium pricing based on growth expectations.
• ROE at 29.6% and ROCE at 19.6% justify investor interest but profits are relatively modest compared to peers with better margins.

This valuation suggests investors are paying for a rapid growth story, but margins and concentration risks cannot be ignored.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

The People Behind Jinkushal Industries

Jinkushal is a promoter-driven company with the Jain family holding 99% of pre-offer equity.

• Anil Kumar Jain (CMD): Brings 37+ years of industry experience across automotive, logistics, mining contracting, and infrastructure. He heads overall strategy and operations. His deep sector expertise has been central to scaling Jinkushal’s exports.
• Abhinav Jain (Whole-Time Director): With over 7 years of international business experience, he manages exports and global market expansion. Recognized as ‘Business Leader of the Year 2023’ by CEO Insights magazine.
• Sandhya Jain (Admin Head): More than a decade of experience managing HR, compliance, and CSR functions. Supports operational stability and people management.

The leadership profile highlights longevity, family ownership, and practical experience rather than marquee professional hires, making execution strongly tied to the promoters’ involvement.

The Money Makers from the IPO

The Offer for Sale (OFS) component is small but important. Promoter-family members are booking significant gains.

• Anil Kumar Jain is selling shares worth ₹7.5 crore, realizing a massive return of over 3,000% on his very low acquisition cost (₹0.04 per share).
• Abhinav Jain will sell ₹2.6 crore worth of shares. His cost base is close to zero, indicating near-total value uplift.
• Sandhya Jain exits ₹1.5 crore, making over 2,420% gain on her average cost of ₹0.05 per share.

These exits highlight the family’s handsome wealth creation through a promoter-heavy cap table. Importantly, the company itself won’t benefit from the OFS proceeds.

Industry Outlook

The global construction equipment sector is a $132.4 billion (around ₹1,16,500 crore) market (CY24), projected to grow to $177.2 billion by CY29 at 6.0% CAGR. The used equipment segment is a key growth driver as contractors seek cost efficiency and sustainability. Infrastructure investments worldwide, especially in emerging economies, are boosting demand.

However, competition remains stiff, especially from global OEMs with stronger brands and cheaper Chinese alternatives. Pricing pressures and raw material cost fluctuations will continue to test margins for smaller exporters like Jinkushal.

Analyst View

Jinkushal Industries presents an interesting mix of strong growth potential and margin pressures. Its export-driven model, niche leadership in refurbished machines, and experienced promoters support scalability. The Day 1 oversubscription at 2.29 times reflects encouraging retail and HNI appetite, even if QIB participation was negligible. The steady GMP at ₹21 signals consistent secondary market sentiment, though not an aggressive rerating yet.

However, risks remain with export concentration, dependency on a select customer base, and relatively weaker operating margins compared to peers. The IPO pricing already bakes in a premium, which could limit upside if future growth does not meet expectations.

For investors, this is a story of riding a high-growth exporter in a specialized segment but with clear risks attached. It appears better suited for those with a higher risk tolerance who can weather short-term volatility while betting on the refurbished machinery opportunity.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Jinkushal Industries' RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.