Jyoti CNC Automation IPO opens today: GMP, issue details, 10 key things to know

The first mainboard initial public offering (IPO) of 2024, Jyoti CNC Automation IPO, opens for subscription today, resuming the IPO season. Jyoti CNC Automation Limited is a CNC machine manufacturer and supplier. The business is headquartered in India and focuses on producing and distributing CNC machinery.

The product line consists of multi-tasking machines, simultaneous 3-axis and simultaneous 5-axis CNC machining centres, CNC turning centres, CNC turning-milling centres, CNC vertical machining centres (VMCs), and CNC horizontal machining centres (HMCs).

The company's promoters are Vikramsinh Raghuvirsinh Rana, Parakramsinh Ghanshyamsinh Jadeja, Sahdevsinh Lalubha Jadeja, and Jyoti International LLP.

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Also Read: Jyoti CNC Automation IPO opens next week. GMP, price, other details of upcoming IPO

With the capacity to design, develop, and produce a wide range of products, Jyoti CNC has three manufacturing facilities: two are located in Rajkot, Gujarat, in India, and one is located in Strasbourg, France. At the end of September 2023, the company's order book totaled ₹3,315 crore from various end-user industries, with an order of ₹305 crore coming from an electronics manufacturing services (EMS) company.

Between the fiscal year ending on March 31, 2023, and March 31, 2022, Jyoti CNC Automation witnessed a 27% increase in revenue and a 131.18% increase in profit after tax (PAT).

Also Read: IPOs next week: One mainboard, 3 SME public issues and one listing to keep primary market busy

The company's listed peers are Elgi Equipments Ltd (with a P/E of 44.30), Lakshmi Machine Works Ltd (with a P/E of 37.69), Triveni Turbine Ltd (with a P/E of 67.76), TD Power Systems Ltd (with a P/E of 46.66), and Macpower CNC Machines Ltd (with a P/E of 51.31), as per Red Herring Prospectus (RHP).

Here are the 10 key things to know about Jyoti CNC Automation IPO: 

Jyoti CNC IPO date: Jyoti CNC Automation IPO date of subscription is scheduled for Tuesday, January 9, and will close on Thursday, January 11.

Jyoti CNC IPO price band: Jyoti CNC Automation IPO price band has been fixed in the range of ₹315 to ₹331 per equity share of the face value of ₹2.

Jyoti CNC Automation IPO lot size: Jyoti CNC Automation IPO lot size is 45 equity shares and in multiples of 45 equity shares thereafter.

Jyoti CNC IPO anchor investors: CNC machine manufacturing company raised over ₹448 crore from anchor investors on January 8. The company allocated 1,35,27,190 equity shares to anchor investors at ₹331 per share.

Anchor investors included Goldman Sachs, Nomura Funds, Natixis International Funds, Neuberger Berman Emerging Markets Equity Fund, Optimix Wholesale Global, The Master Trust Bank of Japan, Prudential Hong Kong, Carmignac Portfolio, Allianz Global Investors Fund, and Eastspring Investments India Fund invested in the Rajkot-based company.

Jyoti CNC Automation IPO details: Jyoti CNC IPO, which is worth ₹1,000 crore, is completely a fresh issue; there is no offer for sale (OFS) component, according to RHP.

Also Read: Jyoti CNC Automation IPO to be launched on January 9, check details here

Jyoti CNC Automation IPO objective: The company plans to use the net proceeds from the fresh offering for the following purposes: to finance the company's long-term working capital needs; to pay back and/or prepay, in full or in part, some of the borrowings that the company has taken out; and for general corporate purposes.

“In addition, our company expects to receive the benefits of listing of equity shares on the stock exchanges including enhancing our company’s visibility and brand image among our existing and potential customers and creating a public market for our company’s equity shares in India," said Jyoti CNC Automation in its RHP.

Jyoti CNC Automation IPO listing date and allotment details: Tentatively, Jyoti CNC Automation IPO basis of allotment of shares will be finalised on Friday, January 12, and the company will initiate refunds on Monday, January 15, while the shares will be credited to the demat account of allottees on the same day following refund. Jyoti CNC share price is likely to be listed on BSE and NSE on Tuesday, January 16.

Lead Manager and Registrar of Jyoti CNC IPO: The Jyoti CNC Automation IPO's book running lead managers are Equirus Capital Private Limited, ICICI Securities Limited, and SBI Capital Markets Limited, and the registrar is Link Intime India Private Ltd.

Jyoti CNC IPO reservation: Jyoti CNC Automation IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. A discount of ₹15 per equity share is being offered to eligible employees bidding in the employee reservation portion.

Jyoti CNC Automation IPO GMP today: Jyoti CNC IPO GMP or grey market premium is +85. This indicates Jyoti CNC Automation share price were trading at a premium of ₹85 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Jyoti CNC Automation share price was indicated at ₹416 apiece, which is 25.68% higher than the IPO price of ₹331.

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

Also Read: Jyoti CNC Automation IPO: Price band set at ₹315-331 per share; check GMP, issue details, more

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