Jainik Power and Cables: A Cautious Debut on the NSE SME Platform

Today marks a significant day for Jainik Power and Cables as the manufacturer of aluminium wire rods steps onto the NSE SME platform. Fresh off its ₹51.3 crore Initial Public Offering (IPO), the company faces a somewhat muted reception from the market, with expectations of a flat listing. Investors are watching closely as the stock begins its journey, especially given the current sentiment.

The IPO, which concluded its subscription period on June 12, 2025, involved a fresh issue of 46.63 lakh shares, each priced at ₹110. While the overall subscription stood at a modest 1.54 times, a deeper look reveals mixed interest. Retail investors showed relatively stronger enthusiasm, subscribing 2.08 times their allotted portion. However, qualified institutional buyers (QIBs) and non-institutional investors (NIIs) exhibited only marginal interest, with subscriptions of 1.01 times and 1.13 times, respectively. This cautious uptake from institutional players often signals a reserved outlook for a company's immediate listing performance.

Indeed, the unofficial market, often gauged by the Grey Market Premium (GMP), offers a telling snapshot of pre-listing sentiment. For Jainik Power and Cables, the GMP has remained flat at ₹0. This suggests that those trading in the grey market aren't anticipating any premium over the issue price when the shares officially hit the exchange. Consequently, the estimated listing price is expected to hover right around the IPO price of ₹110, implying minimal, if any, listing gains for early investors.

Jainik Power and Cables, established in May 2011, initially carved its niche in trading aluminium scrap and ingots. It was only in April 2023 that the company ventured into manufacturing, now proudly producing 9.5 mm aluminium wire rods from its ISO-certified facility in Sonipat, Haryana. Their products serve industrial clients across a widespread region including Delhi, Haryana, Rajasthan, Uttar Pradesh, and Uttarakhand.

Financially, the company has shown promising growth. For the fiscal year ending March 31, 2025, Jainik Power and Cables reported a 4% uptick in revenue, reaching ₹352.38 crore. Even more impressive was the substantial 84% surge in profit after tax, which climbed to ₹9.24 crore. These figures highlight a positive trajectory in their business operations since shifting focus to manufacturing.

The capital raised through the IPO is strategically earmarked for several key initiatives. A significant portion will go towards bolstering working capital, ensuring smooth day-to-day operations. Furthermore, funds are allocated for setting up a new manufacturing plant, which will be crucial for future expansion. A portion will also be used to repay existing loans, strengthening the company's balance sheet, with the remainder reserved for general corporate purposes. While the NSE SME listing opens doors to broader capital markets for Jainik Power and Cables' ambitious growth plans, its initial performance will be a crucial barometer of investor confidence in this aluminium wire rod manufacturer.