Jainik Power & Cables successfully completed its Initial Public Offering (IPO) for the Small and Medium Enterprise (SME) segment. The IPO opened for subscription on June 10, 2025, and closed on June 12, 2025. Investors showed cautious interest in the offering, leading to a moderate subscription rate by the close of the issue.
This IPO attracted attention because it reflected ongoing investor sentiment towards SME public offerings in India. Despite volatile equity markets and global uncertainties, Jainik Power & Cables managed to complete its fundraising efforts within the scheduled subscription period.
IPO Structure and Pricing Details
Jainik Power & Cables offered shares at a fixed price band of ₹100 to ₹110 per share. The company aimed to raise capital by issuing fresh equity shares. The subscription remained open for three days, giving retail and institutional investors a limited window to participate.
The company targeted funds for expansion, working capital requirements, debt reduction, and general corporate purposes. By pricing the IPO competitively, Jainik Power & Cables intended to attract diverse investor categories while ensuring sufficient demand for its shares.
Market participants closely monitored the IPO pricing strategy. Many analysts viewed the price band as reasonable, considering the company’s financial performance and growth prospects. The final offer size included both retail and non-institutional investor quotas, which allowed broader market participation.
Subscription Response and Final Tally
The IPO received a subscription of approximately 1.32 times by the close of the third day. Retail investors showed a greater level of interest, while non-institutional investors contributed moderately to the total demand.
Market analysts interpreted this subscription response as a sign of cautious optimism. Investors demonstrated interest in fundamentally strong SME companies but remained selective due to ongoing volatility in the broader markets.
Compared to recent SME IPOs that witnessed higher oversubscription, Jainik Power & Cables’ IPO reflected more measured participation. Global geopolitical tensions, market corrections, and concerns over monetary policies likely influenced investor sentiment during the subscription period.
Company Profile: Jainik Power & Cables
Jainik Power & Cables operates in the manufacturing sector with a focus on power cables, electrical wires, and related products. The company manufactures a wide range of cables used in power transmission, infrastructure projects, industrial applications, and commercial installations.
The company has established manufacturing facilities equipped with modern technology and stringent quality control systems. Jainik Power & Cables supplies its products to various state electricity boards, government contractors, and private sector companies.
Strong client relationships, consistent product quality, and an experienced management team have supported the company’s steady growth in recent years. Jainik Power & Cables also emphasizes research and development to introduce new product lines that meet evolving customer requirements.
Financial Performance
Jainik Power & Cables reported stable financial growth leading up to the IPO. The company’s revenue, profit margins, and return on equity improved consistently over the past few fiscal years. Cost management initiatives and operational efficiency contributed to its financial stability.
The company maintained a healthy balance sheet with moderate debt levels, which enhanced its appeal to investors seeking stability in the SME space. Its operating profit margins improved as it streamlined production processes and reduced wastage.
During its pre-IPO financial year, Jainik Power & Cables reported a double-digit growth rate in both revenue and net profit. Analysts highlighted the company’s focus on efficiency, customer acquisition, and new market penetration as key drivers behind its financial performance.
Growth Strategy
Jainik Power & Cables plans to utilize the IPO proceeds to fund its future expansion. The company intends to upgrade its manufacturing facilities, increase production capacity, and introduce advanced machinery to meet rising demand.
In addition, Jainik Power & Cables plans to diversify its product offerings by introducing specialized cables designed for renewable energy projects, electric vehicle infrastructure, and smart grids. Management views these segments as high-growth opportunities that can contribute significantly to future revenues.
The company also aims to strengthen its sales and distribution network by entering new geographical markets within India. By expanding its customer base, Jainik Power & Cables expects to increase order volumes and improve economies of scale.
Market Environment During IPO
The IPO took place amid a volatile market environment. Global stock markets faced headwinds from escalating US-Iran tensions, rising crude oil prices, and the looming trade deadline involving former US President Donald Trump’s trade negotiations.
Indian equity markets also faced pressure from these developments. The Sensex and Nifty50 posted sharp declines during the IPO period, reflecting investor nervousness. These external factors created a challenging backdrop for IPOs across both large-cap and SME segments.
Despite these uncertainties, Jainik Power & Cables moved forward with confidence. The company offered potential investors an opportunity to invest in a business with steady cash flows, strong fundamentals, and growth visibility.
SME IPO Segment: Investor Interest Grows
The SME IPO market in India has gained momentum over the past few years. Companies like Jainik Power & Cables have benefitted from growing investor appetite for fundamentally sound smaller companies with scalable business models.
Retail investors increasingly view SME IPOs as attractive alternatives to larger mainboard IPOs. SME companies often offer faster growth, personalized management attention, and niche market opportunities that attract investors looking for higher returns.
However, investors remain selective and prioritize companies with solid financials, transparent corporate governance, and clear growth strategies. Jainik Power & Cables met many of these criteria, enabling it to complete its IPO successfully despite broader market turbulence.
Listing Expectations
After the successful subscription, Jainik Power & Cables plans to list its shares on the NSE SME platform. The listing is expected to take place within the next two weeks, depending on regulatory clearances and final allotment procedures.
Market participants expect muted listing gains due to the moderate oversubscription levels. However, the company’s stable business model and expansion plans may support its stock performance over the long term. Investors will closely monitor the listing day performance to gauge market sentiment towards SME offerings.
Expert Opinions
Market experts offered mixed views on the IPO. Some analysts praised Jainik Power & Cables’ consistent growth, sound balance sheet, and expansion plans. They highlighted the company’s focus on quality manufacturing and its strong client base as key positives.
Other experts advised caution due to broader market volatility and the company’s exposure to raw material price fluctuations. Copper and aluminum prices directly affect cable manufacturers, which can impact profit margins if prices move unfavorably.
Nonetheless, most experts agreed that the company’s long-term prospects remain positive if it executes its expansion plans effectively and navigates market challenges carefully.
Conclusion
Jainik Power & Cables completed its SME IPO subscription period on June 12, 2025, securing a subscription of 1.32 times. Despite challenging market conditions, the company attracted sufficient investor interest, reflecting confidence in its business model and growth strategy.
The IPO proceeds will support Jainik Power & Cables’ capacity expansion, product diversification, and market penetration plans. Investors now await the company’s listing on the NSE SME platform, which will provide further insight into its market reception.
As the SME IPO segment continues to evolve in India, companies like Jainik Power & Cables offer investors opportunities to participate in India’s manufacturing growth story while navigating the risks associated with smaller-cap investments.
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