Jainik Power and Cables Limited, established in 2011 and based in Delhi, is a prominent manufacturer and supplier of aluminium wire rods. Originally incorporated as Jainik Enterprises Private Limited, the company transitioned from trading aluminium scrap and ingots to specializing in high-quality aluminium wire rod production. The Jainik Power and Cables IPO is scheduled for subscription from June 10 to June 12, 2025, with an issue size of ₹51.30 crore.
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Expert Opinions
The Jainik Power and Cables IPO is drawing positive market sentiment, supported by the company’s strong financial performance and established track record in aluminium wire rod manufacturing. Strengths include impressive revenue growth, experienced promoters, and a notable reduction in debt, with a debt-to-equity ratio of 0.79 in FY 2025. However, risks remain from modest profit margins and sensitivity to raw material price fluctuations, which could impact future profitability.
Valuation analysis for FY 2025 of Jainik Power and Cables IPO highlights robust metrics with Return on Equity (ROE) at 56.92%, Return on Capital Employed (ROCE) at 55.92%, and Net Asset Value (NAV) of ₹26.59. From a long-term perspective, Jainik Power and Cables’ solid fundamentals and growth trajectory make it an attractive option for investors seeking exposure to the metals sector, though ongoing monitoring of margins and industry dynamics is essential.
Investor Considerations
Investors considering the Jainik Power and Cables IPO should note the company’s strong fundamentals, with revenue rising from ₹339.23 crore in FY 2024 to ₹352.38 crore in FY 2025 and net profit nearly doubling in the same period. The sector outlook remains positive, driven by ongoing infrastructure growth and demand for aluminium products. The IPO valuation for FY 2025 is attractive, with a Price to Book Value of 0.80, PAT margin at 2.63%, and EBITDA margin at 3.98%.
Growth prospects are supported by consistent financial improvement and experienced management. However, risk factors include modest profit margins, exposure to raw material price volatility, and a moderate debt-to-equity ratio of 0.79. For investors, the Jainik Power and Cables IPO may suit both short-term gains and long-term growth goals, though those with longer horizons could benefit more from the company’s expansion and sectoral tailwinds.
| Date | GMP | Trend |
|---|---|---|
| 16 Jun 2025 11.21 | ₹00 | --- |
| 15 Jun 2025 11.59 | ₹00 | --- |
| 14 Jun 2025 10.51 | ₹00 | --- |
| 13 Jun 2025 10.47 | ₹00 | --- |
| 12 Jun 2025 19.08 | ₹00 | Down |
| 11 Jun 2025 10.29 | ₹7 | Up |
| 10 Jun 2025 11.22 | ₹00 | --- |
| 09 Jun 2025 11.08 | ₹00 | --- |
| 08 Jun 2025 11.44 | ₹00 | --- |
| 07 Jun 2025 10.39 | ₹00 | --- |
| 05 Jun 2025 11.10 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Jainik Power and Cables IPO’s listing performance. While the GMP of ₹0 suggested a flat listing at the issue price, the stock actually listed at a significant discount of 25.45%. With a substantial prediction error of 25.45%, the GMP failed to anticipate the negative listing sentiment, demonstrating its unreliability as a price predictor in this case.
Jainik Power and Cables IPO Current GMP is ₹00.
Jainik Power and Cables IPO Expected Returns is 0.00%.
Jainik Power and Cables IPO estimated listing price is ₹110.