Introduction
2024 starts with a bang as Jyoti CNC Automation Limited announces its Initial Public Offering (IPO), marking the beginning of the IPO season. This Indian-based company specializes in designing, producing, and distributing CNC machinery, making it a significant player in the manufacturing sector.
Jyoti CNC Automation IPO Details
| IPO Date | January 9 to 11, 2024 |
| Face Value | ₹2 per share |
| Price Band | ₹315 to ₹331 per share |
| Lot Size | 45 Shares |
| Fresh Issue | up to ₹1,000.00 Cr |
| Employee Discount | Rs 15 per share |
About Jyoti CNC Automation Limited
Jyoti CNC Automation Limited, headquartered in India, boasts an impressive product line. From multitasking machines to 3-axis and 5-axis CNC machining centers, turning centers, turning-milling centers, vertical machining centers (VMCs), and horizontal machining centers (HMCs), the company covers a broad spectrum in the CNC machinery domain.
The company has a diverse customer base which includes renowned names such as Indian Space Applications Center – ISRO, BrahMos Aerospace Thiruvananthapuram, Turkish Aerospace, Uniparts India, Tata Advances System, Tata Sikorsky Aerospace, Bharat Forge, Shakti Pumps (India), Shreeram Aerospace & Defense, Rolex Rings, Harsha Engineers, Bosch Limited, HAWE Hydraulics, Festo India, Elgi Rubber, National Fittings, and many others.
Key Things to Know About Jyoti CNC Automation IPO
- Lot Size: The lot size for the IPO is 45 equity shares, multiples of 45 after that. Allocation is 75% for qualified institutional buyers, 10% for retail investors, and 15% for non-institutional investors.
- Anchor Investors: The allocation to anchor investors was scheduled for Monday, January 8.
- IPO Details: The ₹1,000 crore Jyoti CNC IPO is a fresh issue with no offer for sale (OFS) component.
- IPO Objectives: The company plans to utilize the net proceeds for working capital needs, loan repayments, and general corporate purposes.
- Visibility and Brand Image: Jyoti CNC Automation anticipates benefits from listing equity shares, enhancing visibility, and creating a public market for its shares.
- Lead Manager and Registrar: Equirus Capital Private Limited, ICICI Securities Limited, and SBI Capital Markets Limited are the book-running lead managers, with Link Intime India Private Ltd as the registrar.
- IPO Reservation: The IPO reserves 75% for qualified institutional buyers (QIB), 15% for non-institutional Institutional Investors (NII), and 10% for retail investors. A ₹15 per equity share discount is offered to eligible employees bidding in the employee reservation portion.
- Listing Date and Allotment: The basis of allotment could be finalized on Friday, January 12, with refunds initiated on Monday, January 15. Shares will be credited on the same day; tentatively, the listing is expected on Tuesday, January 16.
Key Players and Promoters
The driving force behind Jyoti CNC Automation is its promoters – Vikramsinh Raghuvirsinh Rana, Parakramsinh Ghanshyamsinh Jadeja, Sahdevsinh Lalubha Jadeja, and Jyoti International LLP. Their leadership has steered the company towards success, which is evident in its three manufacturing facilities in Rajkot, Gujarat (India), and Strasbourg, France.
Financial Performance and Growth
As of September 2023, Jyoti CNC Automation’s order book reached an impressive ₹3,315 crore, showcasing its substantial presence in various end-user industries. The fiscal years ending in March 2023 and March 2022 witnessed a remarkable 27% increase in revenue and a staggering 131.18% rise in profit after tax (PAT).
Peers
To understand Jyoti CNC Automation’s standing in the market, let’s compare it with some listed peers. According to the Red Herring Prospectus (RHP), the company competes with Elgi Equipments Ltd, Lakshmi Machine Works Ltd, Triveni Turbine Ltd, TD Power Systems Ltd, and Macpower CNC Machines Ltd.
Grey Market Premium and Estimated Listing Price
The Grey Market Premium (GMP) for Jyoti CNC IPO was +85, indicating a trading premium of ₹85. Considering the upper end of the IPO price band, analysts estimate the listing price could be ₹416 apiece, marking a substantial 25.68% increase.
Checking the company’s financials, diverse product range, and market indicators before investing in the Jyoti CNC Automation IPO is essential. Want to learn more? Check the DRHP here.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.