Jinsuri Electromet IPO

About Jinsuri Electromet Ltd IPO

The IPO of Jinsuri Electromet Ltd comprises a fresh issue of up to 39,99,000 equity shares at the issue price of ₹45 each. It’s a fixed price issue.

Objectives of Jinsuri Electromet Ltd IPO

• Acquire custom-made dyes
  
• Deposit payment for contract manufacturing
  
• Purchase of registered office / corporate office
  
• Funding additional working capital requirements
  
• General corporate purposes
  
• Issue-related expenses
  

Industry Outlook

India is the second-largest aluminium producer in the world. Contrary to the global production which has not kept pace with consumption, aluminium production in the country shot up from 0.58 million tonnes (mt) to 0.65 mt, a rise of 12.5 per cent during April-July period.

The country’s aluminium consumption last fiscal at 3.62 mt was in excess of its indigenous production. According to data by the primary producers, imports had 54 per cent share in the domestic aluminium consumption pie and this share has been steadily rising.

Company Information

Jinsuri Electromet Ltd is currently engaged in the business of supplying aluminium sections and fully fabricated windows to builders, contractors and wholesale suppliers. The company gets these aluminium windows manufactured on a contract basis from Ramco Extrusion Private Limited, Murbad.

These products are mainly sold to the construction and architectural industry. The firm also gets electronic heat sinks manufactured from Ramco Extrusion Private Limited, Murbad and supplies them to various electrical contractors and wholesalers.

Risks of Jinsuri Electomet Ltd

• Significant Portion of Revenue from Top 5 Customers

The company’s top 5 customers represented 100%, 98.56% and 100%, respectively, of its revenue from operations for period ended September 30, 2024 and Fiscal 2024 and 2023, respectively. The loss of one or more of these significant or key customers or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition and cash flows.

• Dependency on Few Suppliers

The company’s top 5 suppliers represented 100% of total purchases for the period ended September 30, 2024 and Fiscals 2024 and 2023. The majority of its purchase is from Ramco Extrusion Private Limited. Any problems faced by its supplier resulting in delays or non-adherence to quality requirements could adversely impact its ability to meet its customer’s requirements in time and its operations would be affected to the extent it’s unable to line up supplies from alternate suppliers.

• Price Fluctuations in Its Product Range

Raw materials like aluminium, graphite, and steel are subject to frequent price fluctuations. Global market dynamics, such as changes in supply-demand balance, mining output, and energy costs, can lead to significant price increases. These increases may be difficult to pass on to customers, especially in competitive markets, which could lead to reduced margins.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: Purva Sharegistry (India) Private Ltd
• Book Running Lead Manager: Inventure Merchant Banker Services Private Ltd

Business Model

Engaged in the business of supply of aluminium sections and fully fabricated windows to builders, contractors and wholesale suppliers, Jinsuri Electromet Ltd also gets electronic heat sinks manufactured along with engaging in the supply of tools and die steel which are used for precision tooling in high-performance applications such as injection moulding, die-casting, etc. The company is also engaged in trading of graphite and products made of graphite.

Company Growth Trajectory

The company’s revenue from operations jumped from ₹0.4116 crores in FY 23 to ₹17.7735 crores in FY 24, while its total revenue grew from 0.4116 crores in FY 23 to ₹18.6313 crores in FY 24. Wide range of options coupled with quality has contributed to the company’s growth over the years.

Market Position

Jinsuri Electromet Ltd has entered into a contract manufacturing agreement with Ramco Extrusion Private Limited to manufacture the aluminium section products. The company’s stress on high quality, strong partnerships and reliable customer service has helped it earn the respect of its peers and customers.

How to Check Allotment Status of Jinsuri Electromet Ltd IPO?

1. Visit the Registrar’s Website

• Visit the official website of Purva Sharegistry (India) Pvt Ltd
• Click on ‘IPO Allotment Query’ from ‘Investor Service’ dropdown
• Select Company Name and enter your Application No or PAN No
• Click on ‘Search’ to know the status

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Choose the Issue Type
• Select the Issue Name from dropdown
• Put in either your application number or PAN number
• Check the box ‘I’m not a robot’
• Click on ‘Search’ to know allotment status

How to Apply for Jinsuri Electromet Ltd IPO?

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