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Business News/ Markets / Ipo/  JNK India IPO day 3: GMP, subscription status to review. Buy or not as bidding ends today?
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JNK India IPO day 3: GMP, subscription status to review. Buy or not as bidding ends today?

JNK India IPO GMP: Shares of the company are available at a premium of ₹24 in the grey market today, say stock market observers

JNK India IPO subscription status: The book build issue has been fully subscribed in the first two days of bidding. (Photo: Courtesy company website)Premium
JNK India IPO subscription status: The book build issue has been fully subscribed in the first two days of bidding. (Photo: Courtesy company website)

JNK India IPO day 3: The three-day subscription for the initial public offering (IPO) is going to end today. In the first two days of bidding, the JNK India IPO subscription status signals that the book build issue has been fully subscribed. The public issue worth 649.47 crore, which is a mix of OFS and fresh shares, is gaining momentum in the grey market as well. According to stock market observers, shares of JNK India Limited are available at a premium of 24 in the grey market today. They said that the rise in buzz around the JNK India IPO can be attributed to the positive reviews given by most of the brokerages of big repute.

JNK India IPO GMP today

According to stock market observers, JNK India IPO GMP (grey market premium) today is 24, which is 9 higher than its GMP of 15 on the JNK India IPO subscription opening date. Experts said that positive sentiments on Dalal Street and positive JNK India IPO review by the majority of the brokerages could be the possible reason for the rise in demand regarding JNK India IPO in the grey market.

JNK India IPO subscription status

By 3:00 PM on day three of bidding, the book build issue has been subscribed 12.72 times. The retail portion of the mainboard issue has been booked 2.38 times whereas the NII portion has been subscribed 11.73 times. However, the QIB segment of the JNK India IPO has been booked 32.33 times.

JNK India IPO review

Giving a 'subscribe' tag to the JNK India IPO, Motilal Oswal's report says, "JNK India IPO has emerged as a key player in the Heating Equipment segment and is now well-positioned to capture industry tailwinds through its demonstrated capabilities. This along with diversification into waste gas handling and entry into green hydrogen is providing the company with a strong competitive edge. The stock is reasonably priced at 37.5x 9MFY24 P/E (on an annualized & diluted basis) in comparison to its peers in the capital goods space. We like JNK given its established track record, large clientele, and diversified geographical and product presence. Hence, we recommend Subscribe for Long Term."

On the financial of the company, the Motilal Oswal report added, “JNK’s revenue/PAT grew by 72%/68% CAGR over FY21-23 on the back of strong OB which jumped >6x over the same period. Its EBITDA margin has substantially improved from 18.4% in FY21 to 26.4% in Q3FY24. Its return ratios are healthy with RoE/RoCE at 48%/39% for FY23."

Infographic: Courtesy mintgenie
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Infographic: Courtesy mintgenie

Anand Rathi has also given a 'buy' tag to the book build issue saying, "JNK India Ltd has an Established track record with a diverse customer base with well-positioned to capture industry tailwinds through their demonstrated capabilities over time and Diversifying product portfolio to cater to varied industries along with Demonstrated financial performance with a robust Order Book reflecting revenue visibility for last three Fiscals. At the upper price band company is valuing at a P/E of 49.38x, EV/EBITDA of 33.13x with a market cap of 23,082 million post issue of equity shares and return on net worth of 47.71%. We believe that the IPO is fairly priced and recommend a “Subscribe-Long term" rating to the IPO."

BP Equities has also given a 'buy' rating to the mainboard IPO saying, "In terms of valuation, despite demanding a P/E multiple of 49.8x at the higher price band, JNK India presents an attractive proposition, given the company's unique product profile and promising growth prospects. Considering the financial metrics, market dynamics, and valuation multiples, we maintain a positive outlook on JNK India Ltd. Therefore, we recommend a "SUBSCRIBE" rating for the issue from a medium to long-term perspective."

Apart from these, brokerages like Arihant Capital Markets, Choice Broking, InCred Equities, Indsec Securities, Nirmal Bank, Reliance Securities, SMIFS, Sushil Finance, and Ventura Securities have also given a 'buy' rating to this public issue.

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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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 25 Apr 2024, 09:01 AM IST
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