Jyoti CNC Automation IPO: As the IPO season resumes in 2024, investors are eagerly anticipating the opening of the Jyoti CNC Automation IPO for subscription tomorrow. Representing the first mainboard initial public offering of the year, Jyoti CNC Automation Limited takes center stage. This Indian-based company is a prominent manufacturer and supplier of CNC machines, contributing significantly to the industrial landscape.
With its headquarters in India, the company is dedicated to the production and distribution of cutting-edge CNC machinery. As investors prepare for the IPO launch, the spotlight is on Jyoti CNC Automation’s potential and the prospects it brings to the market.
Jyoti CNC Automation’s diverse product line showcases a range of advanced manufacturing solutions. The lineup includes multitasking machines, offering versatility in handling various operations simultaneously. Additionally, the company provides simultaneous 3-axis and simultaneous 5-axis CNC machining centers, catering to precision and complex machining requirements.
A Global Player in CNC Machinery
Jyoti CNC Automation, a leading CNC machine manufacturer, is gearing up for its eagerly awaited initial public offering (IPO) with robust foundation and impressive financials. The company, equipped with the capability to design, develop, and manufacture a diverse range of products, operates from three state-of-the-art manufacturing facilities. Two of these facilities are strategically located in Rajkot, Gujarat, India, while the third is situated in Strasbourg, France.
As of September 2023, the company’s order book stands at an impressive ₹3,315 crore, showcasing a strong demand for its offerings across various end-user industries. Notably, a significant ₹305 crore order has been secured from an electronics manufacturing services (EMS) company, underlining Jyoti CNC Automation’s global appeal.
As per the latest available data, the Price-to-Earnings (P/E) ratios for these peers are as follows: Elgi Equipments Ltd (P/E of 44.30), Lakshmi Machine Works Ltd (P/E of 37.69), Triveni Turbine Ltd (P/E of 67.76), TD Power Systems Ltd (P/E of 46.66), and Macpower CNC Machines Ltd (P/E of 51.31). These ratios are essential metrics for investors, offering a glimpse into the valuation and relative performance of companies within the same industry.
Jyoti CNC Automation IPO
Jyoti CNC IPO date
The Jyoti CNC Automation IPO is set to open for subscription on Tuesday, January 9, with the subscription period concluding on Thursday, January 11. This marks the commencement of the IPO season for the year 2024. As market participants eagerly await this significant offering, it presents an opportunity for investors to explore the CNC machinery sector and consider the growth prospects of Jyoti CNC Automation Limited. The IPO is anticipated to attract attention from investors looking to participate in the first mainboard offering of the year.
Jyoti CNC IPO Price Band Announced
The price band for Jyoti CNC Automation IPO has been officially disclosed, falling in the range of ₹315 to ₹331 per equity share with a face value of ₹2. This pricing decision sets the tone for investors as they evaluate the IPO’s valuation and potential returns. The subscription window, scheduled from January 9 to January 11, will allow market participants to bid within this specified price range.
Jyoti CNC IPO Lot Size Revealed
For investors eyeing participation in the Jyoti CNC Automation IPO, the lot size has been unveiled. The IPO lot size for Jyoti CNC Automation is set at 45 equity shares, and thereafter, investors can bid in multiples of 45 equity shares. This lot size information is crucial for investors to determine their investment amount and the number of shares they wish to acquire in this offering.
Jyoti CNC IPO Anchor Investors Allocation Today
Ahead of the official opening of the Jyoti CNC Automation IPO for subscription, the allocation to anchor investors is set to occur today in the evening (Monday, January 8). This crucial step involves allotting shares to anchor investors, who are institutional buyers that subscribe to shares ahead of the IPO launch. Their participation often serves as an indicator of investor confidence in the offering.
Jyoti CNC IPO Overview: ₹1,000 Crore Fresh Issue
The Jyoti CNC Automation IPO, valued at ₹1,000 crore, is exclusively a fresh issue with no offer for sale (OFS) component, as indicated in the Red Herring Prospectus (RHP). This means that the entire IPO proceeds will be utilized for the company’s funding requirements and business expansion plans. The absence of an OFS component emphasizes the company’s focus on raising capital for its growth initiatives.
Jyoti CNC IPO Utilization of Proceeds
The net proceeds from the Jyoti CNC Automation IPO will be allocated to several key areas, as outlined by the company. The primary objectives include addressing long-term working capital requirements, enabling the full or partial repayment of existing borrowings, and supporting general corporate activities. This strategic allocation reflects the company’s intent to fortify its financial foundation, reduce debt, and facilitate ongoing and future business operations.
Jyoti CNC IPO Allotment and Listing Date
The timeline for the Jyoti CNC Automation IPO is set with key dates in mind. The basis of allotment for shares is expected to be finalized on Friday, January 12. Subsequently, the company plans to initiate refunds on Monday, January 15. Investors eagerly anticipating the listing will likely see Jyoti CNC shares listed on both BSE and NSE on Tuesday, January 16. As the IPO journey progresses, these milestones provide a clear schedule for interested stakeholders.
Lead Managers and Registrar for Jyoti CNC IPO
The book running lead managers for the Jyoti CNC Automation IPO are Equirus Capital Private Limited, ICICI Securities Limited, and SBI Capital Markets Limited. These key financial entities play a crucial role in managing the IPO process. Additionally, the registrar for the IPO is Link Intime India Private Ltd, responsible for overseeing various administrative aspects related to the IPO.
Jyoti CNC IPO Reservation Details
In the upcoming Jyoti CNC Automation IPO, a structured reservation system is in place to accommodate different investor categories. The public issue has allocated a minimum of 75% of the shares for qualified institutional buyers (QIB), ensuring a substantial portion for institutional participation. Additionally, a cap of 15% has been set aside for non-institutional investors (NII), while retail investors can participate in up to 10% of the offer. In a notable gesture, eligible employees bidding in the employee reservation portion will receive a discount of ₹15 per equity share. This reservation strategy aims to foster diverse participation and promote employee engagement in the IPO process.
Jyoti CNC IPO Witnesses Strong Grey Market Premium
The Grey Market Premium (GMP) for Jyoti CNC Automation IPO is reflecting robust investor interest, standing at +85. This suggests that Jyoti CNC Automation shares are trading at a significant premium of ₹85 in the grey market. The positive GMP underlines the optimistic sentiment among investors regarding the company’s IPO, anticipating strong demand when it opens for subscription.
With the upper end of the IPO price band and the current strong Grey Market Premium (GMP) of +85, the anticipated listing price for Jyoti CNC Automation shares is estimated at ₹416 per share. This reflects a substantial premium of 25.68% over the IPO price of ₹331.
The robust grey market performance indicates a promising debut for Jyoti CNC Automation on the stock exchanges, potentially attracting significant investor attention during its listing. Investors and market enthusiasts will be closely monitoring the actual listing to see how closely it aligns with these estimations.
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