New Delhi, June 17 (H.S.): Shares of Jainik Power and Cables, a manufacturer of aluminum wires and power cables, had a disappointing stock market debut today, shocking IPO investors. Initially issued at ₹110, the shares opened on the NSE’s SME platform at ₹82, a 25.45 percent drop. Following some buying support, the shares rose to an upper circuit limit of ₹86.10; however, investors still faced a loss of 21.73 percent on the opening day. The IPO raised ₹51.30 crore and was open for subscription from June 10 to 12, garnering an average investor response with an overall subscription of 1.54 times. The Qualified Institutional Buyers (QIB) segment was subscribed 1.01 times, the Non-Institutional Investors (NII) portion was 1.13 times, and the retail investors’ shares were notably subscribed 2.08 times. A total of 46,63,200 new shares with a face value of ₹10 were issued. Proceeds from the IPO are earmarked for setting up a new plant, debt repayment, working capital, and other corporate purposes.

Financially, the prospectus indicates a steady improvement in the company’s health. In fiscal year 2022-23, Jainik Power reported a net profit of ₹15 lakh, which is expected to grow to ₹5.02 crore in 2023-24 and further to ₹9.24 crore in 2024-25. During this period, the company achieved a revenue growth rate of over 128 percent, totaling ₹352.28 crore. Despite the initial disappointment in share performance, the company’s financial trajectory appears to show promise for future growth.

Hindusthan Samachar / Jun Sarkar