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Jyoti CNC Automation IPO: Key Details and GMP Analysis

Jyoti CNC Automation's shares are commanding a robust premium of ₹85 in the unlisted market.


January 8, 2024, 7:07:57 PM IST : Jyoti CNC Automation, a prominent player in the manufacturing and supply of CNC machines, is set to launch its Initial Public Offering (IPO) for subscription on January 9, with the offering closing on January 11. Here’s a breakdown of essential information and the Grey Market Premium (GMP) signals ahead of the subscription.

Issue Overview

The IPO is entirely an offer for sale, valued at ₹1,000 crore. The company has set a price band of ₹315-331 per share for its offering.

Grey Market Premium (GMP)

Leading up to the issue opening, Jyoti CNC Automation’s shares are commanding a robust premium of ₹85 in the unlisted market. The Grey Market, an unofficial trading platform, provides early insights into share pricing before the official listing.

Bidding Details

Investors can bid for a minimum of 45 shares in one lot, with multiples thereafter. The public offer distribution is as follows: 75% for qualified institutional buyers, 15% for high net-worth individuals, and the remaining 10% for retail investors.

Employee Reservation

The company has allocated ₹5 crore worth of shares for its employees, to be offered at a discount of ₹15 each from the final issue price.

Utilization of Proceeds

The net proceeds from the IPO will be allocated towards loan repayment, funding long-term working capital requirements, and general corporate purposes.

Financial Performance

Jyoti CNC Automation holds the third-largest market share in India, constituting approximately 10% in FY23. In the fiscal year 2023, the company’s EBITDA witnessed a 34% YoY growth to Rs 97.4 crore, with a margin expansion of 74 basis points at 10.47%.

Clientele and Orders

With vertically integrated operations, Jyoti CNC Automation boasts major customers like ISRO, BrahMos Aerospace, MBDA, etc. As of June 30, 2023, the company had an order book of ₹3,143 crore.

Profitability and Financials

In FY23, the company turned profitable, reporting a net profit of ₹15.06 crore, a significant turnaround from a loss of ₹48.3 crore. Revenues surged by 24% to ₹929 crore, and for the six months ending September FY24, net profit stood at ₹3.35 crore on a revenue of ₹509.8 crore.

IPO Schedule

Equirus Capital, ICICI Securities, and SBI Capital Markets are the book-running lead managers, and the equity shares will be listed on BSE and NSE on January 16, marking the first public issue and listing in 2024.

Jyoti CNC Automation’s IPO presents a promising investment opportunity, with strong financials and a reputable market position in the CNC machines industry. Investors are keenly watching the Grey Market Premium as an indicator of potential listing gains.

The Indian Bugle
The Indian Bugle
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