Jyoti CNC Automation IPO opens on January 9; price band, other details

The initial public offering (IPO) of Jyoti CNC Automation will open for bidding on Tuesday, January 9, 2024, making it the first mainboard IPO of the new calendar. The company has fixed Rs 315-331 apiece as the price band for the issue. One could bid for a minimum of one lot of 45 equity shares and in multiple thereafter.

Jyoti CNC Automation was incorporated in January 1991. It is a manufacturer and supplier of CNC machines. The company is based in India and specialises in manufacturing and supplying CNC machines. The company has a wide range of CNC machines with 200 types in 44 series.

The company is looking to raise Rs 1,000 crore via fresh share sale. The issue includes a reservation of shares worth Rs 5 crore for the eligible employees of the company, who will get a discount of Rs 15 apiece. The issue closes for subscription on Thursday, December 11, 2024.

The net proceeds from the issue would be utilised toward repayment or pre-payment, in full or part, of certain borrowings availed by the company. It would also be used for funding of long-term working capital requirements of the company; and general corporate purposes. The anchor book for the issue will open on Monday, December 8.

Jyoti CNC's customer base includes Indian Space Applications Center - ISRO, BrahMos Aerospace Thiruvananthapuram, Turkish Aerospace, Uniparts India, Tata Advances System, Tata Sikorsky Aerospace, Bharat Forge, Shakti Pumps, Shreeram Aerospace & Defense, Rolex Rings, Harsha Engineers, Bosch Limited, HAWE Hydraulics, Festo India, Elgi Rubber, National Fittings and more.

The company distributes its products worldwide through Huron's established dealer network and also has 29 sales and service centres in Romania, France, Poland, Belgium, Italy and the UK. The company has three manufacturing facilities, two of which are located in Rajkot, Gujrat, and another in Strasbourg, France.

For the period ended on September 30, 2023, Jyoti CNC reported a net profit of 3.35 crore with a revenue of Rs 510.53 crore. The company reported a net profit at Rs 15.06 crore with a revenue of Rs 952.60 crore in the financial year ended on March 31, 2023. It had reported a loss of Rs 29.68 crore in FY22.

Of the net offer, 75 per cent shares have been reserved for qualified institutional bidders (QIBs), while 15 per cent shares have been allocated for non-institutional investors (NIIs). Remaining 10 per cent of the net offer shall go to retail investors of the issue.

Equirus Capital, ICICI Securities and SBI Capital Markets are the book running lead managers of the Jyoti CNC Automation IPO, while Link Intime India is the registrar for the issue. Shares of the company will be listed on both BSE and NSE on Tuesday, January 16, 2024.

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