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Business News/ Markets / Ipo/  JNK India IPO subscribed 1.03x on Day 2; retail, NII portion fully booked; check GMP, other key details. Apply or not?
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JNK India IPO subscribed 1.03x on Day 2; retail, NII portion fully booked; check GMP, other key details. Apply or not?

JNK India IPO includes a fresh issue of ₹300 crore and an offer-for-sale by promoters. The net proceeds will be used for general corporate objectives and working capital requirements. Book running lead managers are IIFL Securities Ltd. and ICICI Securities Limited.

JNK India IPO has opened for subscription on Tuesday, April 23 and will close on Thursday, April 25. (https://jnkindia.com/)Premium
JNK India IPO has opened for subscription on Tuesday, April 23 and will close on Thursday, April 25. (https://jnkindia.com/)

JNK India IPO: With subscriptions flowing in from retail, non-institutional investors (NIIs), and qualified institutional buyers (QIBs), the JNK India IPO is off to a promising start on its second day of subscriptions today and is probably going to get fully booked. JNK India IPO subscription status is 1.03 times, as per BSE data.

The retail component has been subscribed 1.13 times, the category for non-institutional investors (NIIs) has been subscribed 1.25 times, as per data available on BSE. The quota for QIBs has been booked 68%.

The issue was booked at 49% on the first day, with QIBs taking the lead with a 67% subscription, followed by retail investors at 48% and NIIs at 25%.

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Also Read: JNK India IPO: Issue subscribed 49% on day 1 led by QIBs. Check latest GMP, subscription status, other details

JNK India IPO, which opened yesterday (Tuesday, April 23), will close on Thursday, April 25. A portion of the JNK India IPO, about 15% of the shares, has been set aside for NII, up to 50% for QIB, and 35% reserved for retail investors.

Arun Kejriwal, founder of Kejriwal Research and Investment Services, said that half of the issue was subscribed to on day one, which is a respectable amount. The issue is likely to be fully subscribed to today. The fact that there are subscriptions in all three categories is what is significant. This subscription is pretty decent.

Talking about the company, Kejriwal said that it is an interesting business. Their Korean partnership is important because, based on their expertise, they have been able to get accreditations from all over the world. Initially, they got orders from their Korean counterparts, and now, with their accreditations, they are able to order on their own as well.

Also Read: JNK India IPO opens today: GMP, subscription status, review, price, other details. Apply or not?

JNK India IPO details.
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JNK India IPO details.

JNK India IPO subscription status

JNK India IPO has received bids for 1,14,21,504 shares against 1,10,83,278 shares on offer, according to data from the BSE.

The retail investors' segment received bids for 63,38,052 shares against 56,05,596 shares on offer for this segment.

The NIIs portion got bids for 30,01,536 shares against 24,02,399 on offer for this segment.

The QIBs segment got bids for 20,81,916 shares against 30,75,283 on offer for this segment.

Also Read: JNK India IPO: Heating equipment maker raises 195 crore from anchor investors ahead of IPO

JNK India IPO details

A fresh issue of 300 crore is part of the JNK India IPO, along with an offer-for-sale (OFS) by the promoter selling shareholders Goutam Rampelli (up to 1,122,807), JNK Global Co. Ltd. (up to 2,432,749), Mascot Capital and Marketing Private Limited (up to 4,397,661), and individual selling shareholder Milind Joshi (up to 467,835) of up to 8,421,052 equity shares with a face value of 2.

The company will utilise the net proceeds, among other things, to pay for other general corporate objectives and working capital requirements.

IIFL Securities Ltd. and ICICI Securities Limited are the book running lead managers for the JNK India IPO, while Link Intime India Private Ltd. is the issue registrar.

On Monday, April 22, the business received 194.84 crore from anchor investors. Among the global and domestic institutions that participated in the anchor were Goldman Sachs, Kotak Mutual Fund, HDFC Mutual Fund, Nippon Mutual Fund, Mirae Asset Fund, DSP, LIC Mutual Fund, Bajaj Allianz Life Insurance, and Aditya Birla SunLife Insurance.

JNK India IPO Review 

Swastika Investmart Ltd

The brokerage in its report said that JNK India Ltd manufactures heating equipment for process sectors such as fertilizer, oil and gas refineries, and petrochemicals. In addition to venturing into the flare and incinerator systems markets, the company hopes to break into the renewable energy space by specialising in green hydrogen.

The company has performed well financially over the last three fiscal years. The company has grown both its top and bottom lines over the periods under review, having established a place for itself in the heating equipment sector. Its order book, which was worth 845 crore as of December 31, 2023, points to possible future development, according to the report. 

With all of these considerations, investors may apply for this IPO with a long-term perspective, according to the brokerage, which also feels that the IPO value of 43x P/E is well priced.

Before making a final choice, investors should consider the company's growth potential and value, according to the brokerage.

Nirmal Bang

Although JNK's valuation is at the lower end of the spectrum, the brokerage believes it has generated growth and return ratios that are superior to comparable firms. With a favourable industry structure, little competition, and a robust order backlog, the brokerage is optimistic about JNK and advises subscribing to the IPO.

Also Read: JNK India IPO: 10 key risks investors should know before subscribing to the issue

JNK India IPO GMP today

JNK India IPO GMP or grey market premium is +25. This indicates JNK India share price were trading at a premium of 25 in the grey market, according to investorgain.com.

After taking into consideration the upper end of the IPO pricing range and the existing premium on the grey market, it is expected that JNK India shares will list at a price of 440 per share, which is 6.02% more than the IPO price of 415.

Today's IPO GMP indicates higher and anticipates a solid listing based on the activity of the grey market over the past nine sessions. Analysts at investorgain.com estimate that the lowest GMP is 0 and the maximum GMP is 25.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 24 Apr 2024, 11:42 AM IST
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