Shares of JNK India will make stock market debut on Tuesday, April 30. Market participants believe that the Thane- based heating equipment maker is headed for a strong listing on BSE and NSE, rewarding investors. The grey market premium (GMP) for JNK India shares in fact has surged five times over the past one week, Last heard, JNK India shares were commanding a grey market premium of Rs 130 apiece, suggesting a listing pop of more than 31 per cent to investors over the issue price of Rs 415 apiece. The GMP stood merely at Rs 25 when the issue was closed for the bidding and has doubled since the allotment of shares. Market experts believe that JNK India boasts of sound financials and robust order book. They said valuations for JNK India were still reasonable.
Prashanth Tapse, Senior VP (Research), Mehta Equities expects JNK India to deliver a listing pop of around 25 per cent, thanks to its niche market leadership along with a strong track record of over a decade. "We recommend booking profits for allotted conservative investors while risk-taking investors can 'hold' it for a long term perspective,” he said. The JNK India IPO ran from April 23 to April 25. The company sold its shares in the fixed price band of Rs 395-415 per share. The lot size stood at 36 shares. The company raised Rs 649.47 crore via its primary offering, which included a fresh share sale of Rs 300 crore and an offer-for-sale (OFS) of up to 84,21,052 shares. The issue was overall subscribed 28.13 times. The quota reserved for qualified institutional bidders (QIBs) was booked t 75.72 times The quota for non-institutional investors was subscribed 23.26 times. The portion reserved for retail investors saw bidding for 4.11 times in the three-day bidding process. “The grey market premium is translating to a premium of 30 per cent, fueling optimism and suggests a strong listing with the potential for significant gains”, said Shivani Nyati, Head of Wealth, Swastika Investmart. JNK India, which was incorporated in 2010, is engaged in the design, manufacture, supply, installation, and commissioning of process-fired heaters, reformers and cracking furnaces. IIFL Securities and ICICI Securities are the book running lead managers of the JNK India IPO, while Link Intime India is the registrar for the issue.