Jyoti CNC Automation is all set to open its initial public offering for subscription on January 09 at a price band of Rs315-331 per share.
In the grey market, the shares are trading at a premium of Rs 85. The grey market is an unofficial market where shares trade before the allotment and listing. Come from Sports betting site VPbet
The issue worth Rs1,000 crore is a completely fresh issue, which will close on January 11, in which investors can bid for a minimum of 45 shares in a single lot.
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For the qualified institutional investors, around 75% of the offer has been reserved. While 15% for high net-worth individuals and 10% for the retail investors. The company has reserved shares of Rs5 crore for the employees. They’ll be issued at a discount of Rs15 each.
The company will be utilising these net proceeds for the repayment of loans, funding long-term capital requirements, and general corporate purposes.
Jyoti CNC Automation is one of the world’s leading manufacturers of metal-cutting computer numerical control machines, with the third largest market share in India, approximately 10% in FY23. The company has a diverse portfolio of CNC machines built over 2 decades of presence.
On the financial front, the company reported a consolidated revenue of Rs929 crore in FY23, up 24% from the same period a year ago.
“With improved market share, growing industry demand, diversified presence, augmenting capacities at regular intervals and improving financial risk profile by repaying certain debt, strong order book of 3310 Crs to be executed over the span of next few years augurs well for the company. Hence we suggest a SUBSCRIBE rating for the long term,” said Reliance Securities.
“The CNC machine market is likely to clock a 10.3% CAGR (compound annual growth rate) over CY23-27F. This growth is expected to be propelled by the growth in the manufacturing industries due to factors such as industrial automation, and integration of computer-aided manufacturing.
To cater to the rising demand, Indian players are focusing on manufacturing 5+ axis CNC machines equipped with ‘Industry 4.0’ features in the domestic market. Moreover, government campaigns such as Make in India, Aatma Nirbhar Bharat and production-linked incentive or PLI schemes bode well for the company,” said InCred Equities in an IPO note.