JNK India IPO Day 2: Here are 5 key things to know from RHP before subscribing to issue
The JNK India IPO, which opened for trading on Tuesday, April 23, will close on Thursday, April 25. A portion of the IPO, approximately 15% of the shares, has been allocated for NII, up to 50% for QIB, and 35% reserved for retail investors.
JNK India IPO is showing promising signs of interest, with contributions from retail investors, non-institutional investors (NIIs), and qualified institutional buyers (QIBs), on the second day of subscription. According to BSE data, the issue was subscribed over 0.47 times.
The retail component received 32,37,984 shares, the category for non-institutional investors (NIIs) received 19,34,352 applications, as per data available on BSE.
Also read: JNK India IPO: From price band to GMP - here are 10 things to know before subscribing to issue
The JNK India IPO, which opened for trading on Tuesday, April 23, will close on Thursday, April 25. A portion of the IPO, approximately 15% of the shares, has been allocated for NII, up to 50% for QIB, and 35% reserved for retail investors.
Arun Kejriwal, the founder of Kejriwal Research and Investment Services, noted that half of the IPO was subscribed to on the first day, indicating a respectable level of interest. It is anticipated that the issue will be fully subscribed to by today. The noteworthy aspect is the subscription across all three categories, indicating a decent level of interest overall.
Here are five key things to know from red herring prospectus about JNK India IPO -
Issue Type
The JNK India IPO comprises a fresh issue of ₹300 crore alongside an offer-for-sale (OFS) of up to 8,421,052 equity shares, each with a face value of ₹2. This OFS involves shares being offered by promoter selling shareholders, including Goutam Rampelli (up to 1,122,807 shares), JNK Global Co Ltd (up to 2,432,749 shares), Mascot Capital and Marketing Private Limited (up to 4,397,661 shares), and individual selling shareholder Milind Joshi (up to 467,835 shares).
Also read: JNK India IPO opens today: GMP, subscription status, review, price, other details. Apply or not?
Risk factors
- The derive a significant portion of our revenue from orders which are contracted to us by contracting customers, any failure to obtain new contracts may impact our revenue from operations, cash flows and financial conditions materially and adversely.
- The number of orders the company have received in the past, its current Order Book and its growth rate may not be indicative of the number of orders it will receive in future. The order wins and any delays in execution of its orders expose to time and cost overruns and variability in revenue, materially and adversely impacting its revenue from operations, cash flows and financial conditions.
- The company is unable to trace some of the historical records and there have been certain instances of regulatory non-compliances in the past. It may be subject to regulatory actions and penalties for any such past or future non-compliance or delays and its business, financial condition and reputation may be adversely affected.
Also read: JNK India IPO: 10 key risks investors should know before subscribing to the issue
- The company have derived majority of its revenues from its Corporate Promoter, JNK Global and use its experience and technology support for select projects. Any kind of dissociation with JNK Global may have an adverse impact on its business, results of operations and cash flows.
- Availability and cost of raw materials may adversely affect its business, results of operations, financial condition and cash flows. Also, the company do not enter into any long-term contracts with its suppliers.
Promoters
Arvind Kamath, Goutam Rampelli, Dipak Kacharulal Bharuka, Mascot Capital and JNK Global are the promoters of the company.
As per red herring prospectus (RHP), the promoters hold 45,760,000 equity shares, representing 94.56% of the issued, subscribed and paid-up Equity Share capital of the company.
Financial Information
In the fiscal year 2022-23, JNK India recorded a revenue of ₹407 crore, a significant increase from ₹296.40 crore in the previous fiscal year. The company's net profit for the fiscal year stood at ₹46 crore, up from ₹36 crore the previous year. As of the nine months ending in 2023, the company's total debt amounted to ₹56.73 crore.
As of December of the previous year, the company's order book amounted to ₹845.03 crore, with 86% of orders originating from India and 13.71% from overseas.
Allotment and listing
The allotment for the JNK India IPO is anticipated to be completed by Friday, April 26, 2024. The IPO will be listed on both the BSE and NSE, with a tentative listing date set for Tuesday, April 30, 2024.
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