JNK India files papers with SEBI for IPO

IPO news India: JNK India Ltd, Mumbai-based heating equipment company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to for an Initial Public Offering (IPO).

JNK India IPO comprises of fresh issue of equity shares up to the value of ₹300 crore and an offer-for-sale (OFS) of up to 8.42 million equity shares by the promoters and other selling shareholders, which has a face value of ₹2 per equity share.

The amount of equity shares up for sale includes up to 1. million shares by Goutam Rampelli, 8.67 lakh shares by Dipak Kacharulal Bharuka, 2.18 million shares by JNK Heaters Co. Ltd., 3.94 million shares by Mascot Capital and Marketing Private Limited, and up to 4.19 lakh shares by Milind Joshi.

According to the DRHP, the ₹275.72 crore in fresh issue proceeds will be utilised for general corporate objectives and working capital requirements.

The company may think about issuing additional equity shares in an amount up to ₹60 crore, in consultation with the lead bankers on the issue  ("Pre-IPO Placement"). If such placement is completed, the fresh issue size will be reduced.

The offer is being made through the book-building process, in which not less than 15% of the offer must be made available to non-institutional investors and not less than 35% of the offer must be made available to retail individual investors. Not more than 50% of the offer may be allocated to qualified institutional buyers.

The registrar of the offer is Link Intime India Private Limited, and the book running lead managers are IIFL Securities Limited and ICICI Securities Limited. The equity shares are proposed to be listed on BSE and NSE.

As per the F&S Report in the DRHP, JNK is one of the leading firms in India that specialises in process fired heaters. It holds a significant market share of over 27% in the Indian Heating Equipment market for new order bookings during Fiscal 2023. Its order book as of March 31, 2023, was ₹868.27 crore, six times higher than ₹143.58 crore on the same date in 2021.

Consolidated revenue from operations for the fiscal year 2023 climbed 37.42% to ₹407.30 crore from ₹296.40 crore the previous year, mostly due to increases in income earned in terms of both region and product. Between fiscal years 2022 and 2023, net profit climbed by 28.84%, from ₹35.98 crore to ₹46.36 crore.

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