Jyoti CNC Automation IPO: Total Issue Booked 38.45 Times; QIB Portion Booked 44.13 Times

Jyoti CNC Automation opened its initial public offer (IPO) for subscription on January 9. The company will close the issue on January 11, 2024. The IPO has set the price band between Rs 315-331 per share.

In the Rs 1000 crore IPO, investors can bid for a minimum of 45 equity shares. The company has allocated 75 percent of the issue size to qualified institutional buyers. It has kept 15 percent for non-institutional investors, and the remaining 10 percent for retail individual investors.

The entire IPO comprises a fresh issue of equity shares. The company intends to use the proceeds for debt payment, funding its long-term working capital requirements, and general corporate purposes.

As of 4:33 PM, the issue witnessed a subscription of 38.45 times against the availability of 1.75 crore shares. The retail portion was oversubscribed 25.84 times, and the employee segment was subscribed 12.27 times, equivalent to 20.44 lakh shares.

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Non-institutional Investors (NIIs) subscribed to 36.43 times the allotted shares, whereas Qualified Institutional Buyers (QIBs) subscribed 44.13 times against the 94.76 lakh shares available.

Company Financials

For the period ending on September 30, 2023, Jyoti CNC reported a net profit of Rs 3.35 crore with a revenue of Rs 510.53 crore. In the financial year ending March 31, 2023, the company posted a net profit of Rs 15.06 crore and revenue of Rs 952.60 crore.

Company Profile

Jyoti CNC Automation manufactures computer numerical control (CNC) machines. Its prominent customer base includes ISRO, BrahMos Aerospace Thiruvananthapuram Ltd, Turkish Aerospace, MBDA, Uniparts India, Tata Advanced System Ltd, Tata Sikorsky Aerospace Ltd, Bharat Forge Ltd, Kalyani Technoforge Ltd, Rolex Rings Ltd, and Bosch Ltd.

The company offers a product basket comprising a series of CNC Turning Centers, CNC Turn Mill Centers, CNC Vertical Machining Centers, CNC Horizontal Machining Centers, CNC Vertical Line Machines, and High-tech CNC 3-axis and 5-axis machining centers.

Issue Size

Jyoti CNC IPO is completely a fresh issue. There is no offer for sale (OFS) component, according to RHP.

IPO Reserve Portion

• Qualified institutional buyers – 75 percent of the issue size
• Non-institutional investors – 15 percent
• Retail investors – 10 percent

Objectives of the Issue

The entire IPO comprises a fresh issue of equity shares. The company intends to utilize the proceeds for debt payment, funding its long-term working capital requirements, and fulfilling general corporate purposes.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.