Jainik Power Cables IPO booked 60% so far on first bidding day; check GMP, other key details
Jainik Power and Cables IPO achieves 60% subscription on its first bidding day. Check grey market premium, key details, analyst insights, and investor outlook for this ₹51.30 crore SME IPO.
The initial public offering (IPO) of Jainik Power and Cables Limited, a manufacturer of aluminum wire rods and power cables, opened for subscription on June 10, 2025, and has garnered a moderate response, achieving a 60% subscription rate by the end of the first bidding day. With a price band of ₹100 to ₹110 per share, the IPO aims to raise ₹51.30 crore through a fresh issue of 46.63 lakh equity shares. As the Indian SME IPO market navigates a cautious phase, Jainik Power and Cables’ debut has drawn attention from retail and institutional investors alike. This article delves into the subscription status, grey market premium (GMP), key details, market context, analyst insights, and what lies ahead for potential investors.
Subscription Status: A Steady Start
As of 5:00 PM IST on June 10, 2025, the Jainik Power and Cables IPO received applications for approximately 2.8 million equity shares against the 4.663 million shares offered, resulting in a subscription rate of 0.60 times, according to data from the National Stock Exchange (NSE). The retail individual investor (RII) category, allocated 44.97% of the issue, was subscribed 0.72 times, reflecting decent interest from small investors. The non-institutional investor (NII) category, also allocated 44.97%, saw a subscription of 0.55 times, while the qualified institutional buyer (QIB) portion, reserved at 10.05%, recorded a muted response at 0.38 times.
“The first-day subscription of 60% is respectable for an SME IPO in the current market environment, where investor sentiment is cautious due to global uncertainties and tariff-related concerns,” said Ankit Sharma, Senior Analyst at WealthBridge Capital. “Retail investors seem to be leading the charge, likely drawn by the company’s established presence in the aluminum wire rod sector.”
The IPO will remain open for subscription until June 12, 2025, with share allotment expected to be finalized on June 13. Shares are slated to list on the NSE SME platform (Emerge) on June 17, 2025.
Grey Market Premium: A Flat Performance
The grey market premium (GMP) for Jainik Power and Cables IPO has remained flat at ₹0 as of June 10, 2025, indicating that unlisted shares are trading at the upper price band of ₹110 with no premium or discount, according to sources like investorgain.com. This lackluster GMP suggests subdued expectations for listing gains, a trend observed in several recent SME IPOs.
“The zero GMP reflects a wait-and-see approach among grey market traders,” noted Priya Mehra, IPO Analyst at MarketPulse Advisors. “While Jainik Power and Cables has a solid business model, the absence of a premium could be due to broader market volatility and limited hype around the issue.”
Investors should note that GMP is not an official indicator of listing performance and can fluctuate based on market sentiment. The flat GMP underscores the need for investors to focus on the company’s fundamentals rather than speculative gains.
Key Details of the Jainik Power and Cables IPO
Here are the critical details of the IPO:
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Issue Size: ₹51.30 crore through a fresh issue of 46.63 lakh equity shares.
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Price Band: ₹100 to ₹110 per share, with a face value of ₹10.
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Lot Size: 1,200 shares, requiring a minimum investment of ₹1.2 lakh for retail investors.
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Subscription Dates: June 10 to June 12, 2025.
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Allotment Date: Tentatively June 13, 2025.
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Listing Date: Tentatively June 17, 2025, on NSE SME (Emerge).
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Book Running Lead Manager: Fast Track Finsec Private Limited.
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Registrar: Skyline Financial Services Private Limited.
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Utilization of Proceeds: ₹23.50 crore for working capital, ₹10.99 crore for setting up a new plant, ₹5 crore for loan repayment, and the remainder for general corporate purposes and issue expenses.
The company, incorporated in 2011, transitioned from trading aluminum scrap and ingots to manufacturing aluminum wire rods in 2023. It operates primarily in North India, serving clients in Delhi, Haryana, Rajasthan, Uttar Pradesh, and Uttarakhand. Jainik Power and Cables reported a 4% revenue increase to ₹352.38 crore and an 84% surge in net profit to ₹9.24 crore for FY 2024-25, highlighting its growth potential.
Market Context: SME IPOs in a Cautious Climate
The Indian IPO market, particularly the SME segment, has experienced mixed performance in 2025. While mainboard IPOs have taken a breather, SME offerings like Sacheerome (subscribed 10.61 times on day two) and Ganga Bath Fittings (subscribed 1.64 times) have shown varied investor interest. Jainik Power and Cables’ 60% subscription on day one places it in a moderate performance bracket, reflecting cautious optimism amid global economic uncertainties and tariff-related concerns impacting market sentiment.
“The SME IPO space is highly selective right now,” said Sharma. “Investors are prioritizing companies with strong fundamentals and clear growth plans. Jainik Power and Cables benefits from the rising demand for aluminum wire rods driven by electrification and infrastructure projects, but it must compete for attention in a crowded market.”
The aluminum wire rod industry is poised for growth, fueled by India’s push for industrial development and electrification. Jainik’s focus on quality, compliance with environmental, health, and safety (EHS) standards, and ISO certifications positions it well to capitalize on these trends.
Analyst Insights: A Balanced Perspective
Analysts have offered a balanced view of the Jainik Power and Cables IPO. The company’s decade-long experience in the metal industry, recent shift to manufacturing, and robust financials are seen as positives. However, the flat GMP and moderate subscription suggest that investors are weighing risks carefully.
“Jainik Power and Cables is a compelling long-term story for investors who believe in India’s infrastructure growth,” said Mehra. “The IPO proceeds will strengthen its manufacturing capacity and reduce debt, which are prudent moves. However, short-term listing gains may be limited given the GMP and market dynamics.”
Sharma added, “The retail quota’s stronger response indicates confidence in the company’s regional dominance. Investors should evaluate the IPO based on its fundamentals and avoid chasing speculative gains. A subscription pickup on days two and three could boost sentiment.”
Investor Outlook: Long-Term Potential vs. Short-Term Caution
For retail investors, the Jainik Power and Cables IPO presents a mixed bag. The company’s fundamentals, including revenue growth, profitability, and strategic use of IPO proceeds, make it an attractive option for those with a long-term horizon. The aluminum wire rod sector’s growth prospects, driven by electrification and industrial demand, further enhance its appeal. However, the flat GMP and moderate first-day subscription suggest limited scope for immediate listing gains, which may deter short-term traders.
Investors are advised to:
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Assess Fundamentals: Focus on Jainik’s financial performance, industry positioning, and growth plans.
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Monitor Subscription Trends: A stronger response on the final bidding day could signal improved listing prospects.
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Apply via ASBA: Use online banking or IPO forms to apply, ensuring compliance with the minimum lot size of 1,200 shares.
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Consider Risks: Market volatility and tariff uncertainties could impact post-listing performance.
Shashank Jain, Managing Director of Jainik Power and Cables, expressed optimism about the IPO, stating, “This capital raise will fuel our expansion and solidify our position in the aluminum wire rod market. We are committed to delivering long-term value to our shareholders.”
The Jainik Power and Cables IPO has kicked off with a 60% subscription on its first day, reflecting cautious but steady investor interest. While the flat GMP tempers expectations for listing gains, the company’s strong fundamentals, strategic growth plans, and alignment with India’s electrification push make it a noteworthy contender in the SME IPO space. As the subscription window continues, investors should weigh the long-term potential against short-term market dynamics. With two more bidding days to go, Jainik Power and Cables remains a stock to watch in the evolving Indian IPO landscape.
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