Heating equipment firm JNK India files draft IPO papers with Sebi

Heating equipment maker JNK India has filed draft red herring prospectus (DRHP) with market regulator Sebi (Securities and Exchange Board of India) to raise funds through an initial public offering (IPO). The issue comprises fresh equity of up to Rs 300 crore and an offer for sale (OFS) of up to Rs 84.21 lakh worth shares.

Under the OFS, Goutam Rampelli, Dipak Kacharulal Bharuka, JNK Heaters, Mascot Capital and Marketing and Milind Doshi would offload shares, the DRHP filing showed.

Promoters Rampelli, Kacharulal Bharuka, JNK Heaters and Mascot Capital hold 94.56 per cent in the company, while public shareholder Milind Joshi has 4.96 per cent stake.

South Korean firm JNK Heaters and Mascot Capital are the corporate promoters of the company with 25.79 per cent and 46.62 per cent stakes, respectively.

Before filing the red herring prospectus with the ROC (Registrar of Companies), JNK India said it may consider issue of Rs 60 crore worth shares via private placement. In case the pre-IPO placement is undertaken by the company, then the said amount will be reduced from the fresh issue size, it mentioned.

Maharahtra-based JNK India said fresh issue proceeds would be utilised mainly for working capital requirements amounting to Rs 275.72 crore and remaining for general corporate purposes and offer expenses.

The company is among well-known heater companies of India, with a market share of around 27 per cent, considering new order bookings in 2022-23 (FY23).

It has clocked a revenue from operations of Rs 407.30 crore and a profit of Rs 46.40 crore in FY23.

JNK India's heating equipment is required in process industries such as oil, gas refineries, petrochemicals, fertilisers, hydrogen and methanol plants.

IIFL Securities and ICICI Securities are the book running lead managers to the issue, while Link InTime India is the registrar.

JNK India has capabilities in thermal designing, engineering, manufacturing, supplying, installing and commissioning process fired heaters, reformers and cracking furnaces.