The Ultimate Guide to Jyoti CNC Automation IPO Opening on January 9

4 Jan 2024 , 11:12 AM

Jyoti CNC Automation, a manufacturer of computer numerical control (CNC) machines for metal-cutting, has set the price band for its Rs 1,000-crore initial public offering (IPO) at Rs 315-331 per share.

The bidding period for the Jyoti CNC Automation IPO is scheduled to run from January 9 to January 11, with the anchor book opening on January 8. The IPO details are as follows:

• Basis of Allotment: Friday, January 12, 2024
• Initiation of Refunds: Monday, January 15, 2024
• Credit of Shares to Demat: Monday, January 15, 2024
• Listing Date: Tuesday, January 16, 2024

The IPO comprises only a fresh issue component, with the entire proceeds going to the Rajkot-based company. Additionally, Rs 5 crore worth of shares have been reserved for employees, to be issued at a discount of Rs 15 each to the final issue price.

Reservation details for the Jyoti CNC Automation IPO:

• QIB Shares Offered: Not less than 75% of the Net Issue
• Retail Shares Offered: Not more than 10% of the Net Issue
• NII (HNI) Shares Offered: Not more than 15% of the Net Issue

Retail investors can apply for a minimum of 45 equity shares, with the minimum application size set at Rs 14,895 and a maximum investment limit of Rs 1,93,635.

Jyoti CNC Automation, a supplier of diverse CNC machines to industries like aerospace, defense, and medical, holds the third-largest market share in India, constituting approximately 10 percent of the market share in India for FY23. The company operates two manufacturing facilities in Gujarat and one in France.

As of September 2023, Jyoti CNC Automation has an order book of Rs 3,315.33 crore, including Rs 304.92 crore worth of orders from an entity in the electronics manufacturing services (EMS) industry.

Financially, the company reported a net profit of Rs 15.06 crore for the fiscal year ending March FY23, a significant turnaround from a loss of Rs 48.3 crore. Revenue from operations in FY23 increased by 24.4 percent to Rs 929.3 crore, and EBITDA grew by 34 percent to Rs 97.4 crore, with a margin expansion of 74 bps at 10.47 percent.

For the six months ending September FY24, Jyoti CNC recorded a net profit of Rs 3.35 crore on a revenue of Rs 509.8 crore.