Jainik Power & Cables IPO

About Jainik Power Cables IPO

Jainik Power Cables Limited IPO is an IPO of ₹51.30 crores. It consists of a fresh issue of up to 46,63,200 equity shares. The shares will be allotted on June 13, 2025. The credit of shares to the demat account will take place on June 16, 2025, and the initiation of refunds will take place on June 16, 2025.

Objective of Jainik Power Cables IPO

• To meet the working capital requirements of the company.
• To fund and set up a plant.
• To repay a portion of the loan availed by the company.
• To meet general corporate purposes.
• To meet the issue expenses.

Industry Outlook

Aluminium is a recyclable, environment-friendly metal having a host of applications in a number of diverse sectors - power, transportation, building, construction, packaging and many more. Increasing application, growing environmental concerns and the move towards greater use of recyclable materials are driving growth in the world aluminium market. Aluminium represents the second largest metal market in the world, in volume terms, after iron and steel. The aluminium industry encompasses the extraction of the ore (bauxite) as well as primary and secondary processing of the metal.

Aluminium is critical for all the key sectors that will aid in India becoming a US$5,00,000 crore economy. ICRA has estimated the domestic aluminium demand growth to remain healthy at around 9% in the next two fiscal years, given the government's thrust on infrastructure development. Increasing infrastructural development and automotive production are the key factors driving the market growth. The production of aluminium stood at 0.35 crore tonnes in FY23. Production of aluminium stood at 0.34 crore tonnes in FY22 (up to January 2022). In January 2022, NALCO produced 40,694 metric tonnes of aluminium and sold 41,488 metric tonnes of aluminium metal. India's aluminium exports were reported at US$8,248,048.505 in December 2022.

Extensive growth in electric vehicles, renewables, modern infrastructure, energy-efficient consumer goods and greater dependence on strategic sectors such as aerospace and defence will drive aluminium consumption to grow at a CAGR of more than 10%. The global aluminium consumption has been driven majorly by India and China, having a growth rate of approximately 10% until pre-COVID times. The last decade has seen India's consumption almost double from 0.22 crore tonnes in FY11 to about 0.4 crore tonnes in FY19. India's aluminium demand is estimated to double again by 2025 with the current resilient GDP growth rate, driven by increasing urbanisation and push for boosting domestic infrastructure, automotive, aviation, defence, and power sectors. Aluminium consumption is expected to reach 0.72 crore tonnes in the next five years.

Company Information

Jainik is engaged in manufacturing aluminium wire rods from the year 2023, and it’s been more than a decade since the company has worked in the metal industry. Before manufacturing, the company dealt in the trading of aluminium rods. The company is a manufacturer and supplier of aluminium wire rods with quality practices and is compliant with Environmental, Health, and Safety (EHS) in the manufacturing industry, as certified by the ISO certificates held by the company. The company has a Quality Assurance Department which ensures testing through spectrometers for purity checks and detects even hidden impurities.

Risks of Jainik Power Cables IPO

• Volatility in the supply and pricing of their raw materials may have an adverse effect on their business, financial condition and results of operations. Their raw material suppliers could fail to meet their obligations, which may have a material adverse effect on their business, results of operations and financial condition.

• The geographical concentration of their manufacturing facilities may restrict their operations and adversely affect their business, results of operations and financial condition.

• Their continued operations are critical to their business, and any disruption to power or fuel sources or any shutdown of their manufacturing facilities may have an adverse effect on their business, results of operations, financial condition and cash flows.

Anchor Investor Information

BID/ISSUE FOR ANCHOR INVESTORS: 09 June 2025

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Fast Track Finsec Private Limited

Registrar for the IPO is Skyline Financial Services Private Limited

Business Model

The company earns its revenue through the following sources:

• Trading of aluminium scrap and ingots through imports.
• Manufacturing aluminium wire rods.

Company Growth Trajectory

Net revenue from operations for the financial year 2024-25 stood at ₹351.69 crores, whereas for the financial year 2023-24, it stood at ₹338.62 crores, representing an increase of 3.86%, marking the nominal growth rate for the company. Other income for the financial year 2024-25 stood at ₹0.69 crores, whereas for the financial year 2023-24, it stood at ₹0.61 crores, representing an increase of 13.04%. This was due to interest income of ₹0.38 crores earned during the year. The restated profit before tax for the financial year 2024-25 stood at ₹9.24 crores, whereas for the financial year 2023-24, it stood at ₹5.02 crores, which is almost equivalent to 2.62% and 1.47% of the total income of the corresponding periods respectively.

As per the restated standalone financial statements, the revenues from operations increased at a CAGR of 128.45% from FY 2023 to FY 2025, while their EBITDA increased at a CAGR of 221% for the same period.

Company Market Position

The company was originally established to operate in the aluminium industry, primarily engaging in the trading of aluminium scrap and ingots through imports. Initially, their focus was on procuring and supplying raw materials, such as aluminium ingots and scrap, to various manufacturers of aluminium wire rods and traders who, in turn, catered to other manufacturers. In the financial year 2019-20, they made a significant strategic shift by expanding their business model into trading of aluminium wire rods in addition to the raw materials they were already dealing with. From FY 2019-20 to FY 2022-23, they successfully carried out trading of aluminium wire rods, with their trading volume and revenue showing a significant portion of overall revenue. They supply their products across various states, mainly in the states of Delhi, Haryana, Rajasthan, Uttar Pradesh and Uttarakhand.

How To Check Allotment Status of Jainik Power Cables Limited IPO?

You can check the allotment status of shares either on the website of the Bomaby Stock Exchange (BSE) or on the website of the registrar Skyline Financial Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Jainik Power Cables Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Skyline Financial Services Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Jainik Power Cables Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for Jainik Power & Cables IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
  
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
  
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
  
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
  
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI