Jinkushal Industries files IPO paper with Sebi

Jinkushal Industries Limited (JKIPL), a key player in export trade of construction machines with presence in the UAE and the U.S. (through its subsidiaries), has filed draft red herring prospectus (DRHP) with the capital market regulator Sebi for an initial public offering (IPO).

The proposed IPO comprises an offer of 96.5 lakh equity shares of face value of ₹10 each, including a fresh issue of up to 86.5 lakh equity shares and an offer for sale (OFS) of up to 10 lakh equity shares.

The Chhattisgarh-based company intends to utilise the proceeds from the fresh equity issuance for meeting working capital requirements and general corporate purposes.

JKIPL is the largest non-OEM construction machines exporter with a 6.9% market share, as per CareEdge report mentioned in the DRHP. The company, which is promoted by Anil Kumar Jain, Abhinav Jain, Sandhya Jain, Tithi Jain and Yashasvi Jain, is engaged in export trading of new and customised as well as used and refurbished construction machines in global markets.

JKIPL specialises in export trading of construction machines such as hydraulic excavators, motor graders, backhoe loaders, soil compactors, wheel loaders, bulldozers, cranes, and asphalt pavers.

JKIPL primarily operates across three primary business verticals - export trading of customised, modified and accessorised new construction machines; export trading of used/refurbished construction machines; and export trading of own brand ‘HexL’ construction machines (presently in category of backhoe loaders) to cater a diverse international customer base.

As on date, the company has exported construction machines to over thirty (30) countries, including UAE, Mexico, Netherlands, Belgium, South Africa, Australia, and the UK. It has successfully supplied over 1500 construction machines, comprising of over 900 new (with customisation or accessorised) and over 600 used/refurbished construction machines.

The used construction equipment market has shown consistent growth, with an estimated value of $132.4 billion in CY24 and is expected to reach $177.2 billion by CY29, with a CAGR of 6.0% during the forecast period, as per the DRHP.

Besides, the company is also engaged in refurbishment, reuse, and contribution to circular economy along with environmental responsibility. It has a diversified market presence and optimised machines solutions. It has built an efficient supply chain infrastructure that supports its core business in the export trading of construction machines. 

As per the DRHP, JKIPL has a consistent track record of financial performance leading to strong balance sheet position. It has achieved a CAGR of 56.7% in revenue growth, while return on equity (ROE) stands at 42.18%, reflecting its ability to effectively utilise capital investments to drive sustainable growth.

Under its business vertical of export trading of used/refurbished machines, JKIPL refurbishes used construction machines to enhance their functionality and extend their operational life. To support this, it operates an in-house refurbishment facility in Raipur, Chhattisgarh, India- spanning 30,000 sq. ft.

Recently, JKIPL launched its own brand, ‘HexL’, for construction machines. The recent launch of its HexL brand marks its transition from other brands’ product sales model to own brand sales model. Going forward, JKIPL intends to launch categories of construction machines including electric construction equipment under its brand name ‘HexL’. 

GYR Capital Advisors Private Limited is the sole Book Running Lead Manager (BRLM) to the proposed IPO.