JNK India Files IPO Prospectus with SEBI

23 Aug 2023 , 01:59 PM

JNK India, a heating equipment manufacturer based in Maharashtra, has submitted a draft red herring prospectus to the regulatory body Sebi as part of its plans for a public issue.

The proposed initial public offering includes a fresh issuance of shares valued at Rs 300 crore by the company. Additionally, there will be an offer-for-sale (OFS) of 84,21,052 equity shares by both promoters and an investor.

The selling shareholders in the OFS are Goutam Rampelli, Dipak Kacharulal Bharuka, JNK Heaters, Mascot Capital and Marketing, and Milind Joshi.

Prior to filing the red herring prospectus with the Registrar of Companies (ROC), the company may opt to issue shares worth Rs 60 crore through private placement. If this pre-IPO placement occurs, the mentioned amount will be subtracted from the overall size of the fresh issue.

The funds from the fresh issue will primarily be used for working capital needs, totaling Rs 275.72 crore. The remaining funds will be allocated towards general corporate purposes and offer expenses.

JNK India has secured a prominent position in the heating equipment sector in India in terms of new order bookings between FY21 and FY23. The company specializes in thermal designing, engineering, manufacturing, supplying, installing, and commissioning process fired heaters, reformers, and cracking furnaces.

These heating equipment components are vital in process industries such as oil and gas refineries, petrochemicals, fertilizers, and hydrogen and methanol plants.

IIFL Capital Services and ICICI Securities are the designated merchant bankers for this issue.