The production and distribution of CNC machinery is the area of expertise for Jyoti CNC Automation. Everything you need to know about the company’s January 9 subscription opening for its IPO is provided here.
The entire value of the Jyoti CNC Automation IPO is anticipated to be raised through the new issuance of 3.02 crore shares, or Rs 1,000 crore.
The first public offering (IPO) of Jyoti CNC Automation Limited is scheduled to begin on January 9; subscriptions are accepted through January 11. The IPO, which will be funded entirely by the new issue of 3.02 crore shares, is anticipated to be valued at Rs 1,000 crore and will be priced between Rs 315 and Rs 331 per share.
The shares are scheduled to debut on both the Bombay Stock Exchange and the National Stock Exchange on January 16, and investors interested in this offering can expect the allotment process to begin on January 12.
For retail investors, the minimum investment required is Rs 14,895, with a minimum lot size of 45 shares.
Jyoti CNC Automation is a January 1991-founded company that specializes in the production and distribution of CNC machinery.
Its product line consists of 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).
Jyoti CNC Automation demonstrated a significant improvement in its financial performance in FY23, reporting a net profit of Rs 15.06 crore and revenue of Rs 952.60 crore, following a loss of Rs 29.68 crore in FY22.
The FY23 EBITDA increased 34% YoY to Rs 97.4 crore, and the margin increased by 74 basis points to 10.47 percent.
Market watchers note that the unlisted shares of Jyoti CNC Automation have a grey market premium (GMP) of Rs 84, indicating an expected listing gain of 25.38 per cent from the public issue. The GMP could change and is dependent on market sentiment.
Investors should be mindful of the risks attached to Jyoti CNC Automation, though, as these include a greater reliance on its top 10 clients, a comparatively high debt-to-equity ratio of 10.17x in FY23, and lower Return on Capital Employed (RoCE) and Return on Equity (RoE) in comparison to peers.
Based on diluted EPS, the Price-to-Earnings (P/E) ratio for FY23 varies from 308.82 times to 324.51 times, depending on which end of the price range is being considered.
The IPO’s book running lead managers are Equirus Capital Private Limited, ICICI Securities Limited, and SBI Capital Markets Limited. Link Intime India Private Ltd is the issue’s registrar.