The Jyoti CNC Automation IPO is poised to make headlines as the first mainboard initial public offering of 2024. With the IPO approaching, investors and market enthusiasts are buzzing with anticipation over this significant event. Let’s delve into 10 key aspects of the Jyoti CNC Automation IPO while exploring why this IPO is catching the attention of market analysts and investors alike.
1. Company Overview Jyoti CNC Automation Limited stands as a distinguished CNC machine manufacturer and supplier headquartered in India. The company’s focus on producing and distributing CNC machinery includes multitasking machines, simultaneous 3-axis and simultaneous 5-axis CNC machining centers, CNC turning centers, CNC turning-milling centers, CNC vertical machining centers (VMCs), and CNC horizontal machining centers (HMCs).
2. Impressive Growth and Financials Between the fiscal year ending on March 31, 2023, and March 31, 2022, Jyoti CNC Automation witnessed a remarkable 27% increase in revenue and a staggering 131.18% surge in profit after tax (PAT). This impressive growth trajectory has captured the interest of potential investors and industry experts.
3. Order Book Strength As of September 2023, the company’s order book totaled a substantial ₹3,315 crore from various end-user industries. Notably, an order of ₹305 crore came from an electronics manufacturing services (EMS) company, underlining the company’s robust market demand.
4. Product Line and Manufacturing Facilities Jyoti CNC boasts three manufacturing facilities, with two located in Rajkot, Gujarat, India, and one in Strasbourg, France. The company’s versatile product line and global manufacturing presence signify its dedication to meeting diverse industry needs and expanding its international footprint.
5. Competitive Landscape and Peers The company’s listed peers such as Elgi Equipments Ltd, Lakshmi Machine Works Ltd, Triveni Turbine Ltd, TD Power Systems Ltd, and Macpower CNC Machines Ltd serve as valuable benchmarks for evaluating Jyoti CNC’s potential and market positioning.
6. IPO Details and Price Band The Jyoti CNC Automation IPO price band has been fixed in the range of ₹315 to ₹331 per equity share of the face value of ₹2. The IPO, worth ₹1,000 crore, consists entirely of a fresh issue.
7. IPO Objective and Utilization The net proceeds from the IPO will be allocated to finance the company’s long-term working capital needs, repay or prepay borrowings, and support general corporate purposes. The company also anticipates leveraging the benefits of listing equity shares on the stock exchanges to enhance visibility and brand image.
8. Listing Date and Allotment Details The IPO subscription is scheduled from Tuesday, January 9, to Thursday, January 11, with the basis of share allotment finalized on Friday, January 12. Refunds are set for Monday, January 15, and the shares are expected to be credited to the demat accounts of allottees on the same day, followed by listing on BSE and NSE on Tuesday, January 16.
9. Lead Managers and Registrar Equirus Capital Private Limited, ICICI Securities Limited, and SBI Capital Markets Limited are the book running lead managers, and Link Intime India Private Ltd serves as the registrar for the Jyoti CNC Automation IPO.
10. Market Sentiments and Grey Market Premium (GMP) The current grey market premium stands at +85, indicating substantial investor enthusiasm, reflecting a premium of ₹85 in the grey market. Such noteworthy market sentiments hint at a potentially positive listing price for Jyoti CNC Automation shares.
Conclusion The Jyoti CNC Automation IPO holds promising prospects, backed by its robust financial performance, impressive order book, and renowned industry presence. As the market gears up for substantial IPO activity, this IPO stands out as a significant event, attracting attention for its innovative products, financial strength, and growth potential in the CNC machinery sector.