The initial public offering (IPO) of JNK India saw a mixed response from the investors during the first few hours of the bidding on day one. The issue, which kicked off for bidding on Tuesday, March 23, was mostly subscribed by retail and HNI investors during the initial phase. JNK India is selling its shares in the price band of Rs 395-415 apiece. Investors can apply for a minimum of 36 shares and its multiples thereafter. The Rs 649.47 crore FPO issue includes a fresh share sale of Rs 300 crore and an offer-for-sale (OFS) of up to 84,21,052 equity shares by its promoters and other shareholders. According to the data, the investors made bids for 17,58,636 equity shares, or 16 per cent, compared to the 1,10,83,278 equity shares offered for the subscription by 13.00 hours IST on Tuesday, April 23. The three-day bidding for the issue will conclude on Thursday, March 25. The allocation for retail investors was subscribed 28 per cent, while the portion reserved for non-institutional investors saw a subscription of only seven per cent. However, the portion set aside for qualified-institutional bidders (QIBs) was yet to attract any bids, as of the same time. Incorporated in 2010, JNK India is engaged in the design, manufacture, supply, installation, and commissioning of process-fired heaters, reformers and cracking furnaces. The manufacturing is done at the in-house manufacturing facilities and/or third-party vendors. The grey market premium (GMP) for JNK India has marched higher as the bidding for the issue begins. The company was commanding a GMP of Rs 25, suggesting a listing pop of 6 per cent to the investors from the upper end of the price band. The premium in the unofficial market stood at Rs 15 about 24 hours earlier. Brokerage firms, so far, are mostly positive on the issue and suggest subscribing to it on the back of strong fundamentals, rising capex, expansion potentials and sound financials. However, they have suggested rising need of working capital and delay in capex plans may dent its prospects. The company has created a niche place for itself in the heating equipment segment with a robust order book that vouches for future prospects, said Aditya Gaggar, Director of Progressive Shares. "Based on FY24 annualized earnings, the issue appears reasonably priced," he said. JNK India has raised Rs 194.84 crore from anchor investors by allocating 46,94,989 shares at Rs 415 apiece. JNK India has reserved 50 per cent of the net offer for the qualified institutional investors (QIBs), while non-institutional investors (NIIs) will get 15 per cent of shares. Retail investors will get 35 per cent of the net offer. 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. Shares of the company are likely to be listed at both the bourses- BSE and NSE on April 30, Tuesday.