JNK India Limited is a Mainboard IPO with a book-built issue of Rs. 649.47 crores
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Overview of JNK Industries Ltd IPO
IPO Date
23-Apr-2024 to 25-Apr-2024
Face Value
₹2 per share
Price Band
₹395 to ₹415
Lot Size
36 Shares Share
Issue Size
1,60,15,988 shares shares (aggregating up to ₹649.47 Cr)
Listing At
BSE,NSE
Basis of Allotment
26-Apr-2024
Initiation of Refunds
29-Apr-2024
Credit of Shares to Demat
29-Apr-2024
Listing Date
30-Apr-2024
Cut off time for UPI Mandate
25-Apr-2024
Objective of JNK Industries Ltd IPO
The net proceeds from the issuance of 75,94,936 Equity Shares (worth Rs 300 crs) will be fully utilized to meet working capital requirements of the company.
About JNK Industries Ltd IPO
JNK Industries manufacters process fired heaters, reformers and cracking furnances, collectively categorised as “Heating Equipment” which are required mainly in the oil and gas industry. Over the years the company has diversified into flares and incinerator systems and has been developing capabilities in the renewable sector with green hydrogen.
JNK Industries Ltd IPO Financials
Particulars (in Cr)
9MFY24
FY23
FY22
FY21
Total Revenue Annual
253
407
296
138
Operating Expenses Annual
187
338
243
112
Operating Profit Annual
67
69
54
25
Depreciation
4
7
3
2
Interest Annual
6
4
4
1
Tax Annual
14
16
12
6
Net Profit Annual
46
46
36
16
Total Share Holder Funds
169
122
72
37
Fixed Asset Annual
8
5
5
1
Total Non Current Asset
43
27
24
3
Total Current Asset
402
305
239
121
Total Asset Annual
453
338
268
125
Book Value Per Share
₹ 30
₹ 22
₹ 13
₹ 7
ROE
31.8%
47.7%
66.0%
57.0%
ROCE
34.7%
57.2%
83.3%
71.9%
Total Debt To Total Equity
0.4
0.4
0.2
0.3
EBIDTA
26.4%
17.0%
18.2%
18.4%
Cash From Operating
-9
-7
39
11
Cash From Investing
-6
-25
-25
-17
Cash From Finance
19
25
1
8
Net Cash Flow
3
-7
15
3
Promoter's Holding
Total Share Capital
Offered to Public
Promoter’s Holding(Pre-Issue)
Promoter’s Holding(Post-Issue)
Strengths
1. Market leader with 27% domestic market share on new order bookings in FY23.
2. Established track record with a diverse customer base
3. Strong Parentage of JNK Heaters (Korean Parent having 14% market share globally for fire heaters in global petchem and refining segment.
Weaknesses
The following points should be kept in mind:
JNK Industries, like any business, has its strengths and challenges. The business is dependent on the petrochemical and oil and gas industry which is cylical in nature, as on FY23, 77% of the revenues came from the Oil and Gas segment. The business is working capital intensive and product concentration on heating equipments is relatively high at ~82% of revenues as on FY23.