IPO Listing: Jainik Power Share Price Lists at 25% Discount- What’s the Loss on One Lot?

Jainik Power and Cables Ltd, a leading manufacturer of aluminium wire rods, made its debut on NSE's SME platform at a significant discount. This article explains the IPO listing performance, investor loss calculations, and IPO details.

IPO Listing Details

Jainik Power and Cables Ltd was listed on June 17, 2025, on NSE Emerge platform. Despite moderate investor interest during the IPO bidding process, the Jainik Power and Cable share price opened at ₹82 a steep discount of 25.45% from the issue price of ₹110. This disappointing debut caught the attention of retail investors and market watchers alike.

IPO Allotment & Lot Size

The IPO, worth ₹51.30 crore, was issued through the book-building process and offered 46.63 lakh fresh equity shares.  There was no Offer for Sale (OFS) component. The price band ranged from ₹100 to ₹110. A single lot consisted of 1,200 shares, requiring an investment of ₹1,32,000 at the upper band. 

Jainik Power: Subscription Overview

The IPO saw an overall subscription of 1.54 times.  

• Retail individual investors: 2.08 times 
• Non-institutional investors: 1.13 times 
• Qualified institutional buyers: 1.01 times

The oversubscription in the retail quota indicated optimism among small investors. However, the weak listing reflected otherwise upon market opening.

Company Profile and Financials

Jainik Power and Cables has over 10 years of experience in the aluminium wire rod space. Previously engaged in aluminium rods trading, the firm evolved into manufacturing and now supplies across key Indian states like Delhi, Haryana, Rajasthan, Uttarakhand, and Uttar Pradesh.

Operational highlights for FY25:  

• Revenue: ₹352.38 crore, up 3.87% YoY 
• Net Profit: ₹9.24 crore, up 84% YoY

The IPO proceeds were aimed at funding the company’s plant, working capital, loan repayment, and general corporate needs.

Loss Per Lot Breakdown

Here’s a quick look at the financial impact for an investor who got 1 lot:  

• IPO Investment: ₹110 x 1,200 shares = ₹1,32,000 
• Listing Value: ₹82 x 1,200 shares = ₹98,400 
• Notional Loss: ₹1,32,000 – ₹98,400 = ₹33,600

The 25.45% discount on listing resulted in a significant early-stage loss, raising concerns among retail participants.

Read More: Earthood Services Refiles DRHP with SEBI for IPO!  

IPO Execution and Key Stakeholders

• Book Running Lead Manager: Fast Track Finsec Pvt Ltd 
• Registrar: Skyline Financial Services Pvt Ltd

No anchor investments were reported, and the IPO was primarily focused on mobilisation through retail and institutional subscription.

Conclusion

Jainik Power and Cables' public issue started on a weak footing with a substantial discount at listing, leading to heavy notional losses for small investors. Despite sound financials and a decade-long operational track record, the stock could not meet the expectations set during the IPO subscription. The development serves as a reminder of the inherent market risks in IPO investing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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