Jinkushal Industries Limited files DRHP with SEBI for an IPO
Jinkushal Industries Ltd. (JKIPL), the largest 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) for an initial public offering (IPO).
The proposed public offer comprises an offer of 96.5 lakh equity shares of face value of Rs. 10 each (Public Offer); including a fresh issue of up to 86.5 lakh equity shares (Fresh Issue) and an offer for sale (Offer for Sale) of up to 10 lakh equity shares.
JKIPL is the largest Non-OEM construction machines exporter with a 6.9% market share (as per CareEdge Report). JKIPL, which is promoted by Mr. Anil Kumar Jain, Mr. Abhinav Jain, Ms. Sandhya Jain, Ms. Tithi Jain and Ms. Yashasvi Jain, is engaged in export trading of new/customized and used/refurbished construction machines in global markets. JKIPL specializes in export trading of construction machines such as hydraulic excavators, motor graders, backhoe loaders, soil compactors, wheel loaders, bulldozers, cranes, and asphalt pavers.
JKIPL is recognized as Three-Star Export house by Directorate General of Foreign Trade (“DGFT”), Government of India. As on date of this DRHP, they have exported construction machines to over thirty (30) countries, including UAE, Mexico, Netherlands, Belgium, South Africa, Australia, and the UK
JKIPL primarily operates across three primary business verticals; export trading of customized, modified and accessorized 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 the Date of the DRHP, JKIPL has successfully supplied over 1500 construction machines, comprising of over 900 new (with customization or accessorized) and over 600 used/refurbished construction machines.
JKIPL proposes to utilize the proceeds from the Fresh Issue towards funding the Working Capital Requirements and for General Corporate Purposes.
The used construction equipment market has shown consistent growth, with an estimated value of USD 132.4 billion in CY24 and is expected to reach USD 177.2 billion by CY29, with a CAGR of 6.0% during the forecast period.
JKIPL is engaged in Refurbishment, reuse, and contribution to circular economy along with environmental responsibility. It has a diversified market presence and optimized machines solutions. It has built an efficient supply chain infrastructure that supports its core business in the export trading of construction machines.
JKIPL has a consistent track record of financial performance leading to strong balance sheet position. JKIPL demonstrated strong financial performance, achieving a CAGR of 56.7% in revenue growth. The company’s Return on Equity (ROE) stands at 42.18%, reflecting its ability to effectively utilize 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’.
The sole Book Running Lead Manager (BRLM) to the proposed IPO is GYR Capital Advisors Private Limited.