Jinkushal Industries Ltd IPOJKIPL

The IPO opens on 25 Sept 2025 & closes on 29 Sept 2025.

Jinkushal Industries Limited was originally incorporated as Zenith Tie-Up Private Limited', a private limited company, dated November 27, 2007, issued by the Registrar of Companies, West Bengal. Subsequently, Company changed its name from Zenith Tie-Up Private Limited' to Jinkushal Ispat & Power Private Limited' dated October 20, 2009 and from Jinkushal Ispat & Power Private Limited' to Jinkushal Industries Private Limited' pursuant to a fresh certificate of incorporation dated January 8, 2014. Subsequently, Company was converted into a public limited company and a fresh certificate of incorporation dated October 30, 2024 was issued by the Registrar of Companies, Central Processing Center, recording the change in the name to Jinkushal Industries Limited'. The Company is engaged in export trading of new/customized and used/refurbished construction machines in global markets. It primarily operate across three primary business verticals; (i) export trading of customized, modified and accessorized new construction machines; (ii) export trading of used/refurbished construction machines; and (iii) export trading of its own brand HexL' construction machines to a diverse international customer base. Apart from these, it specialize in export trading of construction machines such as hydraulic excavators, motor graders, backhoe loaders, soil compactors, wheel loaders, bulldozers, cranes and asphalt pavers. The ownership of the Company was taken over by the existing promoters, in 2009 and the business of renting in construction equipment started during the year 2009. Later, it ventured into the exports of used construction equipment in 2017. The Company acquired the overseas Wholly Owned Subsidiary in the UAE, Dubai by the name of 'Hexco Global, Jafza' in 2024. Company is planning an IPO of aggregating 96,50,000 equity shares of Rs 10 each comprising a fresh issue of 86,50,000 equity shares and 10,00,000 equity shares through offer for sale.

Jinkushal Industries Ltd IPO will close on 29 Sept 2025.

<ul><li>Largest exporter of non-OEM construction equipment as per CareEdge Report, in addition to presence in UAE and USA through our Subsidiaries.</li><li>Engaged in Refurbishment, reuse, and contribution to circular economy along with environmental responsibility.</li><li>Diversified market presence and optimized machines solutions.</li><li>We believe we have built an efficient supply chain infrastructure that supports our core business in the export trading of construction machines.</li><li>The recent launch of HexL, our brand, marks our transition from other brands' product sales model to own brand, product-driven, customer centric business approach.</li><li>Long established relationships with our customers and diverse customer base.</li><li>Consistent track record of financial performance leading to strong balance sheet position.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Anil Kumar Jain</td> <td>16657760</td> <td>56</td> <td>16037190</td> <td>41.78</td> </tr> <tr> <td>2</td> <td>Abhinav Jain</td> <td>5354066</td> <td>18</td> <td>5136216</td> <td>13.38</td> </tr> <tr> <td>3</td> <td>Sandhya Jain</td> <td>2974600</td> <td>10</td> <td>2853472</td> <td>7.43</td> </tr> <tr> <td>4</td> <td>Tithi Jain</td> <td>2974600</td> <td>10</td> <td>2974600</td> <td>7.75</td> </tr> <tr> <td>5</td> <td>Yahasvi Jain</td> <td>1487300</td> <td>5</td> <td>1487300</td> <td>3.88</td> </tr> <tr> <td>6</td> <td>Kamla Bai Jain</td> <td>297460</td> <td>1</td> <td>297460</td> <td>0.78</td> </tr> </tbody> </table>

<ul><li>We are heavily dependent on the export market and derive the majority of our revenue from the export trading of construction machines and therefore vulnerable to a range of risks associated with the export market.</li><li>Our revenue from operations is dependent upon a limited number of customers and the loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on our business, financial condition, results of operations and cash flows.</li><li>A significant portion of our revenue is derived from select geographies such as Mexico and UAE. Any adverse developments in this market could adversely affect our business.</li><li>We have significant working capital requirements and our inability to meet such working capital requirements may have an adverse effect on our results of operations.</li><li>We are dependent on third-party suppliers and any disruptions in the supply or an increase in the prices of requisite construction machines could adversely affect our operations.</li><li>We have limited operating history and uncertain market acceptance of our HexL brand machines.</li><li>We derive a significant portion of our revenue for export trading of refurbished construction machines and our refurbishment machines may be subject to risk associated with quality, reliability and regulatory compliance.</li><li>We also rely on third party vendors for customisation and accessorizing of new machines and refurbishments centres for refurbishment of used machineries. Reliance on third-party vendors for customization, accessorization, and refurbishment may adversely impact quality, timelines, and customer satisfaction.</li><li>We enter into certain related party transactions in the ordinary course of our business and we cannot assure you that such transactions will not adversely affect our business, results of operations, profitability and margins, cash flows and financial condition.</li><li>We do not own the premises from where we operate.</li><li>Our Company and Promoters are parties to certain tax proceedings. Any adverse decision in such proceedings may have a material adverse effect on our business, results of operations and financial condition.</li><li>We face competition in relation to our offerings, including from competitors that may have greater financial and marketing resources. Failure to compete effectively may have an adverse impact on our business, financial condition, results of operations and prospects.</li><li>We have experienced negative cash flows in prior years.</li><li>We are dependent on third party transportation providers for the delivery of our machines and any disruption in their operations or a decrease in the quality of their services could affect our Company's reputation and results of operations.</li><li>We require certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate our business, any failure to obtain, retain and renew such approvals and licenses or comply with such rules and regulations may adversely affect our operations.</li><li>We have contingent liabilities and our financial condition could be adversely affected if any of these contingent liabilities materialize.</li><li>We intend to utilize a portion of the Net Proceeds of the Offer towards the working capital requirements which are based on certain assumptions.</li><li>Any failure in our quality control or procurement processes may adversely affect our business, customer relationships, and financial performance</li><li>There may have been certain instances of non-compliances with respect to certain corporate actions taken by our Company in the past. Consequently, we may be subject to regulatory actions and penalties.</li><li>We are exposed to credit risk from our customers and the recoverability of our trade receivables is subject to uncertainties.</li><li>Volatility in the pricing of construction machinery and related components may adversely affect our profitability and financial performance.</li><li>Growing our business through acquisitions may expose us to additional risks that could adversely impact our business, financial condition, cash flows, operational results, and future prospects.</li><li>We are subject to restrictive covenants under our financing agreements that could limit our flexibility in managing our business or to use cash or other assets. Any defaults could lead to acceleration of our repayment obligations, cross defaults under other financing agreements, termination of one or more of our financing agreements or force us to sell our assets, which may adversely affect our cash flows, business, results of operations and financial condition.</li><li>Majority of our revenue are denominated in foreign currencies. As a result, we are exposed to foreign currency exchange risks and adverse foreign trade policies which may adversely impact our results of operations currency exchange risks which may adversely impact our results of operations.</li><li>Errors in forecasting demand for construction machinery may lead to inefficient inventory management, impacting our operational efficiency, profitability, and financial condition.</li><li>We may not be able to adequately protect our intellectual property, which could harm the value of our brand and services.</li><li>Inability to effectively manage our growth and expansion strategy may adversely impact our business operations, financial performance, and long-term prospects.</li><li>Our ability to access capital at attractive costs depends on our credit ratings. Non-availability of credit ratings or a poor rating may restrict our access to capital and thereby adversely affect our business and results of operations.</li><li>We may be affected by adverse impact in the growth of global economy.</li><li>Our insurance coverage may not be adequate to protect us against all operational risks, and any significant uninsured losses could adversely affect our business, financial condition, and results of operations.</li><li>Our Company will not receive any proceeds from the Offer for Sale.</li><li>We have recently launched our brand, HexL, in December 2024 with an initial focus on backhoe loaders manufacturing for global export and the global market of backhoe loaders machines faces certain challenges.</li><li>Failure or disruption of our IT systems may unfavourably affect our business and operations.</li><li>There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities, which may have an adverse impact on our financial condition and cash flows.</li><li>Our Promoters have provided personal guarantees as security for certain facilities availed by our Company. If these guarantees are revoked, we may be unable to procure alternative guarantees satisfactory to our lenders, which may adversely affect our business, results of operations, cash flows and financial condition.</li><li>If we are unable to establish and maintain effective internal controls and compliance system, our business and reputation could be adversely affected.</li><li>Certain sections of this Draft Red Herring Prospectus disclose information from the CareEdge Report which has been commissioned and paid for by us exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.</li><li>The Directors of our Company does not have experience of being a director of a public listed company.</li><li>The funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and our management will have broad discretion over the use of the Net Proceeds.</li><li>We are dependent on our Promoters/Directors for functioning of our business, and we believe that our senior management team and other key managerial personnel are critical to our continued success and we may be unable to attract and retain such personnel in the future.</li><li>Our Promoters are at present involved in and may enter into ventures that may lead to real or potential conflicts of interest with our business.</li><li>Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.</li><li>We benefit from certain export benefits from the Government of India, which if withdrawn or modified may have a significant impact on results of our operations.</li><li>Any increase in interest rates would have an adverse effect on our results of operations and will expose our Company to interest rate risks.</li><li>Our Promoters will continue to retain majority control over our Company after the Offer, which will allow him to determine the outcome of matters submitted to shareholders for approval.</li><li>Our future funds requirements, in the form of issue of capital or securities and/or loans taken by us, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.</li><li>Our ability to pay dividends in the future will depend upon our future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in our financing arrangements.</li><li>Our Promoters/Directors and some members of our senior management are interested in our Company, in addition to regular remuneration or benefits and reimbursement of expenses.</li><li>We could be harmed by employee misconduct or errors that are difficult to detect, and any such incidences could adversely affect our financial condition, results of operations and reputation.</li><li>The average cost of acquisition of Equity Shares by our Promoters is lower than the issue price of the Equity Shares offered through the present Offer.</li><li>Our Company has during the preceding one year from the date of the Draft Red Herring Prospectus have allotted Equity Shares at a price which is lower than the Offer Price.</li><li>Any future issuance of Equity Shares, or convertible securities or other equity linked securities by our Company may dilute your shareholding and any sale of Equity Shares by our Promoters may adversely affect the trading price of the Equity Shares.</li><li>Under Indian law, foreign investors are subject to investment restrictions that limit our ability to attract foreign investors, which may adversely affect the trading price of the Equity Shares.</li><li>Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.</li><li>QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.</li><li>QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.</li><li>Subsequent to the listing of the Equity Shares, we may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.</li><li>Investors will not be able to sell any Equity Shares on the Stock Exchanges until we receive the appropriate listing and trading approvals.</li><li>The Equity Shares have never been publicly traded, and, after the Offer, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Offer Price, or at all.</li><li>The Offer price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Offer and the market price of our Equity Shares may decline below the Offer Price and you may not be able to sell your Equity Shares at or above the Offer Price.</li><li>Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of our Equity Shares, independent of our operating results.</li><li>We are dependent on third-party suppliers and any disruptions in the supply or an increase in the prices of requisite construction machines could adversely affect our operations.</li><li>We are dependent on third party transportation providers for the delivery of our machines and any disruption in their operations or a decrease in the quality of their services could affect our Company's reputation and results of operations.</li><li>We have limited operating history and uncertain market acceptance of our HexL brand machines.</li><li>We have experienced negative cash flows from Operating and Investing activities in recent past.</li><li>We are exposed to credit risk from our customers and the recoverability of our trade receivables is subject to uncertainties. We do not have ECGC cover, Letters of Credit, or other formal risk mitigation measures to mitigate the credit risk and safeguard trade receivables.</li><li>Majority of our revenue are denominated in foreign currencies. As a result, we are exposed to foreign currency exchange risks and adverse foreign trade policies which may adversely impact our results of operations currency exchange risks which may adversely impact our results of operations.</li><li>We derive a significant portion of our revenue for export trading of refurbished construction machines and our refurbished machines may be subject to risk associated with quality, reliability and regulatory compliance.</li><li>Volatility in the pricing of construction machinery and related components may adversely affect our profitability and financial performance.</li><li>We also rely on third party vendors for customisation and accessorizing of new machines and refurbishments centres for refurbishment of used machineries. Reliance on third-party vendors for customization, accessorization, and refurbishment may adversely impact quality, timelines, and customer satisfaction.</li><li>We enter into certain related party transactions in the ordinary course of our business and we cannot assure you that such transactions will not adversely affect our business, results of operations, profitability and margins, cash flows and financial condition.</li><li>We do not own the premises from where we operate.</li><li>Our Company and Promoters are parties to certain tax proceedings. Any adverse decision in such proceedings may have a material adverse effect on our business, results of operations and financial condition.</li><li>We face competition in relation to our offerings, including from competitors that may have greater financial and marketing resources. Failure to compete effectively may have an adverse impact on our business, financial condition, results of operations and prospects.</li><li>Our Promoters acquired control over the Company through purchase of secondary shares at a significantly discounted price and were not privy to the commercial rationale behind certain historical corporate actions, including a rights issue at premium and subsequent steep devaluation of the equity shares.</li><li>We require certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate our business, any failure to obtain, retain and renew such approvals and licenses or comply with such rules and regulations may adversely affect our operations.</li><li>We have contingent liabilities and our financial condition could be adversely affected if any of these contingent liabilities materialize.</li><li>There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities, which may have an adverse impact on our financial condition and cash flows.</li><li>We intend to utilize a portion of the Net Proceeds of the Offer towards the working capital requirements which are based on certain assumptions.</li><li>Any failure in our quality control or procurement processes may adversely affect our business, customer relationships, and financial performance.</li><li>There may have been certain instances of non-compliances with respect to certain corporate actions taken by our Company in the past. Consequently, we may be subject to regulatory actions and penalties.</li><li>Growing our business through acquisitions may expose us to additional risks that could adversely impact our business, financial condition, cash flows, operational results, and future prospects.</li><li>We are subject to restrictive covenants under our financing agreements that could limit our flexibility in managing our business or to use cash or other assets. Any defaults could lead to acceleration of our repayment obligations, cross defaults under other financing agreements, termination of one or more of our financing agreements or force us to sell our assets, which may adversely affect our cash flows, business, results of operations and financial condition.</li><li>Changes in technology may render our current fleet of equipment obsolete and requires to make substantial capital investments.</li><li>Our success depends upon our ability to attract, develop and retain trained manpower while also maintaining low labour costs.</li><li>Our business is subject to certain seasonal and cyclical variations in the construction industry and as a result our operating results may fluctuate significantly from period to period.</li><li>Errors in forecasting demand for construction machinery may lead to inefficient inventory management, impacting our operational efficiency, profitability, and financial condition.</li><li>We may not be able to adequately protect our intellectual property, which could harm the value of our brand and services.</li><li>Inability to effectively manage our growth and expansion strategy may adversely impact our business operations, financial performance, and long-term prospects.</li><li>Our ability to access capital at attractive costs depends on our credit ratings. Non-availability of credit ratings or a poor rating may restrict our access to capital and thereby adversely affect our business and results of operations</li><li>We may be affected by adverse impact in the growth of global economy.</li><li>Our insurance coverage may not be adequate to protect us against all operational risks, and any significant uninsured losses could adversely affect our business, financial condition, and results of operations</li><li>Our Company will not receive any proceeds from the Offer for Sale.</li><li>We have recently launched our brand, HexL, in December 2024 with an initial focus on backhoe loaders manufacturing for global export and the global market of backhoe loaders machines faces certain challenges.</li><li>Failure or disruption of our IT systems may unfavourably affect our business and operations.</li><li>Our Promoters have provided personal guarantees as security for certain facilities availed by our Company. If these guarantees are revoked, we may be unable to procure alternative guarantees satisfactory to our lenders, which may adversely affect our business, results of operations, cash flows and financial condition.</li><li>If we are unable to establish and maintain effective internal controls and compliance system, our business and reputation could be adversely affected.</li><li>Certain sections of this Red Herring Prospectus disclose information from the CareEdge Report which has been commissioned and paid for by us exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.</li><li>The Directors of our Company does not have experience of being a director of a public listed company.</li><li>The funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency and our management will have broad discretion over the use of the Net Proceeds.</li><li>We are dependent on our Promoters/Directors for functioning of our business, and we believe that our senior management team and other key managerial personnel are critical to our continued success and we may be unable to attract and retain such personnel in the future.</li><li>Our Promoters are at present involved in and may enter into ventures that may lead to real or potential conflicts of interest with our business.</li><li>Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.</li><li>We benefit from certain export benefits from the Government of India, which if withdrawn or modified may have a significant impact on results of our operations.</li><li>Any increase in interest rates would have an adverse effect on our results of operations and will expose our Company to interest rate risks.</li><li>Our Promoters will continue to retain majority control over our Company after the Offer, which will allow them to determine the outcome of matters submitted to shareholders for approval.</li><li></li><li>Our future funds requirements, in the form of issue of capital or securities and/or loans taken by us, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.</li><li>Our ability to pay dividends in the future will depend upon our future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in our financing arrangements.</li><li>Our Promoters/Directors and some members of our senior management are interested in our Company, in addition to regular remuneration or benefits and reimbursement of expenses.</li><li>We could be harmed by employee misconduct or errors that are difficult to detect, and any such incidences could adversely affect our financial condition, results of operations and reputation.</li><li>The average cost of acquisition of Equity Shares by our Promoters is lower than the issue price of the Equity Shares offered through the present Offer.</li><li>Our Company has during the preceding one year from the date of the Red Herring Prospectus have allotted Equity Shares at a price which is lower than the Offer Price.</li><li>Any future issuance of Equity Shares, or convertible securities or other equity linked securities by our Company may dilute your shareholding and any sale of Equity Shares by our Promoters may adversely affect the trading price of the Equity Shares.</li><li>Under Indian law, foreign investors are subject to investment restrictions that limit our ability to attract foreign investors, which may adversely affect the trading price of the Equity Shares.</li><li>Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.</li><li>QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.</li><li>We have in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to our operations and financial performance. These non-GAAP measures and industry measures may vary from any standard methodology that is applicable across the industry and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.</li><li>Subsequent to the listing of the Equity Shares, we may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.</li><li>Investors will not be able to sell any Equity Shares on the Stock Exchanges until we receive the appropriate listing and trading approvals.</li><li>The Equity Shares have never been publicly traded, and, after the Offer, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Offer Price, or at all.</li><li>The Offer price of our Equity Shares may not be indicative of the market price of our Equity Shares after the Offer and the market price of our Equity Shares may decline below the Offer Price and you may not be able to sell your Equity Shares at or above the Offer Price.</li><li>Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of our Equity Shares, independent of our operating results.</li><li>Our success depends upon our ability to attract, develop and retain trained manpower while also maintaining low labour costs.</li></ul>

The Issue type of Jinkushal Industries Ltd is Book Building.

The minimum application for shares of Jinkushal Industries Ltd is 120.

The total shares issue of Jinkushal Industries Ltd is 9599548.

Initial public offering of 95,99,548 equity shares of face value of Rs. 10/- each ("Equity Shares") of Jinkushal Industries Limited ("the Company" or the "Issuer") for cash at a price of Rs. 121 per equity share (Including a Securities Premium of Rs. 111 per Equity Share) ("Offer Price") Aggregating Rs. 116.15 crores comprising a fresh issue of 86,40,000 equity shares of face value of Rs. 10 each aggregating Rs. 104.54 crores by the company ("Fresh Issue") and an offer for sale of 9,59,548 equity shares of face value Rs. 10/- each aggregating up to Rs. 11.61 crores ("Offered Shares") by the selling shareholders, comprising 6,20,570 equity shares of face value Rs. 10/- each aggregating Rs. 7.51 crores by Anil Kumar Jain, 2,17,850 equity shares of face value Rs. 10/- each aggregating Rs. 2.64 crores by Abhinav Jain and 1,21,128 equity shares of face value Rs. 10/- each aggregating Rs. 1.47 crores by Sandhya Jain (Collectively the "Selling Shareholders or "Promoter Selling Shareholders"), ("Offer for Sale", together with the fresh issue, the "Offer"). The offer will constitute 25.01 % of the post-offer paid-up equity share capital. Price Band: Rs. 121/- for equity share of face value of Rs. 10 each. The floor price is 12.10 times times the face value of the face value of the equity shares. Bids can made for a minimum of 120 equity shares and in multiples of 120 equity shares thereafter.