Jainik Power and Cables IPO – Comprehensive Analysis (June 2025)
🏢 Company Overview
Jainik Power and Cables Limited, incorporated in 2011 as Jainik Enterprises Private Limited, is a manufacturer and supplier of aluminium wire rods. Initially focused on trading, the company transitioned into manufacturing in 2023.
- Key Product: 9.5 mm Aluminium Wire Rods
- Manufacturing Facility: Sonipat, Haryana
- Operational Areas: Delhi, Haryana, Rajasthan, Uttar Pradesh, Uttarakhand
- Certifications:
- ISO 9001:2015 – Quality Management
- ISO 14001:2015 – Environmental Management
- ISO 45001:2018 – Occupational Health & Safety
- Authorisation: Haryana State Pollution Control Board
- Awards:
- Indian Achievers Award for Promising Company
- India 5000 Best MSME Award
- Promoter & Managing Director: Mr. Shashank Jain
📅 IPO Timeline
| Event | Date |
|---|---|
| IPO Opens | 10 June 2025 |
| IPO Closes | 12 June 2025 |
| Allotment Date (Tentative) | Mid-June 2025 |
| Listing Date (Tentative) | Mid-to-late June 2025 |
IPO Details
- Price Band: ₹100 – ₹110
- Lot Size: 1,200 shares
- Minimum Investment (Retail): ₹1,20,000
- Issue Size: ₹51.30 Crore
- Issue Type: Mix of Fresh Issue and Offer for Sale (details in RHP)
💰 Use of IPO Proceeds
As per the RHP, the funds raised will be allocated toward:
- Facility Development: For expanding and upgrading manufacturing capabilities
- Working Capital Requirements
- Technology Upgrades & Automation
- General Corporate Purposes
📈 Financial Performance Table (₹ in Crores)
| Financial Year | Revenue | Profit After Tax (PAT) |
|---|---|---|
| FY 2022–23 | 67.38 | 0.15 |
| FY 2023–24 | 339.00 | 5.02 |
| FY 2024–25 | 352.00 | 9.24 |
🔍 Industry & Peer Comparison
Sector:
- Electrical and power transmission products (specifically aluminium wire rods)
Key Competitors:
- Sterlite Technologies
- Paramount Communications
- Aksh Optifibre
Market Positioning:
- Emerging manufacturer in a fragmented but growing segment.
- Focused on regional markets with expansion plans underway.
- Not yet a dominant national player but gaining momentum due to vertical integration and certifications.
✅ Strengths
- 🏆 Recognized as a high-potential MSME with multiple national awards
- 🔧 In-house manufacturing started in 2023 – boosting margins and supply control
- 📈 Robust revenue growth over 3 years, from ₹67.38 Cr to ₹352 Cr
- ✅ ISO-certified operations with strong compliance and environmental protocols
- 🌐 Growing regional presence in North India
⚠️ Risks & Concerns
- 📦 High dependency on inventory and demand forecasting – inventory levels rose to ₹21.95 Cr in FY25
- 🚛 Relies on third-party logistics – delivery delays can impact operations
- 🤝 Supplier concentration – top 10 suppliers constitute over 50% of purchases
- 💼 Customer concentration risk – top 10 clients make up 50–75% of revenue
- 🧭 Geographic concentration – single manufacturing location in Sonipat, Haryana
- 💰 Negative cash flows from investing/financing activities could signal liquidity stress
- 💸 Foreign exchange risks due to raw material imports
- 🏦 Outstanding financial debt of ₹19.36 Cr as of FY25
📄 IPO Document
Please refer to the official RHP PDF here for complete and detailed information.
📌 Disclaimer
This analysis is based on publicly available information including DRHP, RHP, and exchange filings. It is provided for informational purposes only and does not constitute investment advice. Readers should conduct their own due diligence before investing. Read the Disclaimer page for more details.