As the Indian markets continue to witness a wave of SME listings on the NSE EMERGE platform, the upcoming Initial Public Offering (IPO) of Jainik Power & Cables, scheduled between 10 to 12 June 2025, has garnered notable attention from retail and institutional investors alike. Priced attractively in the range of INR 100 – 110 per share, this IPO offers a rare combination of sectoral relevance, promising financials, and strategic manufacturing expertise. Let’s dig deeper into Jainik Power IPO review:
Company Snapshot
| Metric | Details |
| Name | Jainik Power and Cables Limited |
| Registered Office | North West Delhi, Delhi |
| IPO Type | Fresh Issue (100%) |
| Promoters | Mr. Shashank Jain, Mr. Prateek Jain, Mrs. Anju Jain and Mr. Subhash Chand Jain |
| BRLM | Fast Track Finsec |
| Registrar | Skyline Financial Services |
.
IPO Details: Structure, Timelines, and Pricing
✅IPO Open and Close Dates: 10 – 12 June 2025
✅Listing Date: 17 June 2025
✅Price Band: INR 100 – 110 per share
✅Lot Size: 1,200 shares (INR 1,32,000 minimum investment)
✅Fresh Issue: 46,63,200 Shares
✅Total Issue Size: INR 46.63 – 51.3 crore
✅Retail Allocation: 35%
✅Listing Exchanges: NSE EMERGE
This IPO is exclusively a fresh issue, with no Offer for Sale (OFS), meaning all proceeds will directly benefit the company—a positive sign for prospective investors seeking growth-focused deployment of funds.
Use of IPO Proceeds
Jainik Power plans to utilize the INR 46.63 – 51.3 crore primarily for:
- Working Capital: INR 23.50 crore
- Setting up a new plant: INR 10.99 crore
- Repayment of portion of loan availed by the company: INR 5 crore
- General corporate purposes and issue expenses (unspecified)
From Traders to Manufacturers: A Strategic Evolution
Jainik Power’s journey is one of strategy and execution. Started to import and trade aluminium scrap and ingots, the company built a strong supply chain across North India. Between FY 2019–20 and FY 2022–23 the company shifted gears to trade aluminium wire rods and achieved cumulative revenues of INR 66.79 crore during this period.
The biggest turning point came in April 2023 when Jainik started manufacturing 9.5 mm aluminium wire rods in-house at its ISO certified facility in Sonipat, Haryana. This is when Jainik became a full fledged industrial company and moved beyond distribution and trading. As of 5 May 2025, Jainik Power had 71 full-time employees.
Capacity, Certification & Production Dynamics
- Installed Capacity: 24,000 tons per annum
- FY25 Actual Production: 14,410 tons
- Capacity Utilization FY25: 60.04%
- Planned Future Expansion:
- 20% annual increase in production
- 25% of current capacity to be allocated to aluminium cable manufacturing from FY26
- Complete transition to cable manufacturing within 4–5 years
The pivot to aluminium cables is a game-changer. These products enjoy higher margins and broader applications—ranging from power transmission to infrastructure wiring—providing Jainik with a runway for margin and revenue expansion.
Financial Performance: A Sharp Growth Trajectory
| FY 2023 | FY 2024 | FY 2025 | |
| Revenue | 67.38 | 338.62 | 351.69 |
| Expenses | 67.29 | 332.49 | 340.01 |
| Net Profit | 0.15 | 5.02 | 9.24 |
| EBITDA (%) | 2.01 | 2.40 | 3.98 |
All StandAlone data
In just two years, Jainik’s topline has increased over 5x, while net profit has jumped by over 60 times, from INR 15 lakh in FY23 to INR 9.24 crore in FY25. The EBITDA margin, while still modest, is improving—a positive signal when viewed alongside upcoming cable product expansion.
Valuation Metrics: Still Attractive?
| FY 2023 | FY 2024 | FY 2025 | |
| EPS | 0.18 | 6.03 | 9.99 |
| PE ratio | – | – | 10.01 – 11.01 |
| RONW (%) | 5.29 | 93.77 | 56.92 |
| NAV | 3.42 | 9.45 | 26.59 |
| ROCE (%) | 14.88 | 52.30 | 55.92 |
| Debt/Equity | 5.92 | 2.18 | 0.79 |
Jainik Power is being offered at a Price-to-Earnings (P/E) of 10.01 – 11.01, which appears reasonable given its recent profitability spurt and industry transition. Importantly, RONW and ROCE figures are strong, indicating efficient capital deployment and potential for value creation.
Geographic Reach and Market Presence
Jainik has built a strong customer base across Delhi, Haryana, Rajasthan, Uttar Pradesh, and Uttarakhand, with these states contributing nearly the entirety of its revenue over the last three years:
- FY 2023: INR 61.83 crore
- FY 2024: INR 337.44 crore
- FY 2025: INR 337.77 crore
This regional dominance serves as a foundation for future pan-India expansion, especially as the company enters the higher-value cable manufacturing space.
Certifications and Compliance: A Hidden Strength
Jainik’s ISO 9001:2015, 14001:2015, 45001:2018 certifications and Haryana State Pollution Control Board authorization shows its commitment to quality, environmental sustainability and occupational safety. Such compliance not only boosts operational credibility but also makes Jainik more attractive to institutional clients and export markets.
How Jainik Stacks Against Peers
| EPS | P/E | RONW | NAV | PAT (INR Cr.) | |
| Jainik Power | 9.99 | 10.01–11.01 | 56.92% | 26.59 | 9.24 |
| Hind Aluminium | 3.17 | 13.73 | 2.94% | 109.43 | 2.00 |
| Arfin India | 0.54 | 43.23 | 7.23% | 9.29 | 9.15 |
While Jainik’s peer comparison will become clearer post-listing, its current earnings per share (EPS) and profitability ratios far surpass peers, particularly in Return on Net Worth (RONW), which stands at a striking 56.92%.
Jainik Power IPO Review: Strengths
- Impressive revenue and profit growth since shifting to manufacturing
- Low P/E with high return metrics
- Transition to higher-margin aluminium cables
- Clean balance sheet (debt/equity below 1)
Risk Factors for Jainik Power IPO Review
- Limited Manufacturing Experience: With only one year of experience in manufacturing aluminum products, Jainik Power may face challenges in achieving optimal operational efficiency. Despite impressive topline (128.45% CAGR) and bottomline (221% CAGR) growth from FY 2023 to FY 2025, limited manufacturing history may impact long term financial stability and performance.
- Geographical Concentration Risk: All manufacturing is done in Sonipat, Haryana so company is exposed to regional risks like infrastructure limitations, local competition and operational disruptions. This geographical concentration heightens vulnerability to localized challenges.
- Inventory and Demand Forecasting Risks: The company’s success is dependent on accurate inventory control and demand forecasting. Inaccurate projections can lead to overstocking, reduced margins and cash flow constraints which can impact profitability.
- Raw Material Price Volatility: No long term supply agreement for raw materials like aluminum ingots and litho sheets so company is exposed to price fluctuations and supply chain instability. This dependency increases cost volatility and procurement risks.
- Operational Challenges in Manufacturing: Shift from trading to manufacturing brings in complex demands in production planning, process optimization and quality control. If not managed well, these challenges can lead to inefficiencies, higher operational costs or diminished customer satisfaction.
Conclusion
For investors looking for SME IPOs and manufacturing focused growth stories, Jainik Power & Cables is a good story. Its journey from a trading entity to a certified manufacturer, alongside robust financials and an upcoming cable product line, suggests long-term value creation potential.
While short-term listing gains are never guaranteed, Jainik’s fundamentals and strategic roadmap make it a worthy contender for inclusion in an aggressive small-cap portfolio—particularly for investors looking to ride India’s ongoing infrastructure and electrification boom.