Jyoti CNC Automation Set to Debut on Dalal Street with Rs 1,000-Crore Fresh Issue IPO on January 9

Jyoti CNC Automation, a prominent player in the metal-cutting computer numerical control (CNC) machines manufacturing industry, is all set to make its debut on Dalal Street with an initial public offering (IPO) scheduled to open on January 9, 2024. This IPO marks the first public issue of the new calendar year and aims to raise up to Rs 1,000 crore. The price band for the offering will be revealed soon.

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Unlike many other IPOs, the Jyoti CNC Automation IPO comprises only a fresh issue of shares by the company, with no offer-for-sale component.

Investors have until January 11 to participate in the public issue, while the anchor book will be launched on January 8.

The company, based in Gujarat, has set aside shares worth Rs 5 crore for its employees, with the remainder constituting the net issue available to the public.

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Of the net issue size, approximately 75 percent has been reserved for qualified institutional buyers, 15 percent for high net-worth individuals (non-institutional investors), and the remaining 10 percent for retail investors.

Jyoti CNC Automation plans to allocate Rs 475 crore of the net fresh issue proceeds to repay debts and an additional Rs 360 crore for long-term working capital requirements. The remaining funds from the net fresh issue will be allocated for general corporate purposes.

As one of the leaders in the metal-cutting CNC machines manufacturing sector in India, the company boasts a market share of around 10 percent in FY23. It serves a diverse range of clients in sectors such as aerospace, defense, and medical, including prominent names like Space Applications Centre โ€“ ISRO, BrahMos Aerospace Thiruvananthapuram, Turkish Aerospace, Tata Advanced System, and many more.

Also Read: Shocking 2023 IPO: Top IPOs with Staggering Fundraising Success

As of September 2023, Jyoti CNC Automation’s order book stood at an impressive Rs 3,315.33 crore, with a substantial order of Rs 304.92 crore from an entity in the electronics manufacturing services (EMS) industry.

The company, promoted by Parakramsinh Ghanshyamsinh Jadeja, Sahdevsinh Lalubha Jadeja, Vikramsinh Raghuvirsinh Rana, and Jyoti International LLP, operates through three manufacturing facilities โ€“ two in Gujarat, India, and one in Strasbourg, France, with an annual manufacturing capacity of 4,400 machines in India and 121 machines in France.

Currently, promoters hold a 72.13 percent stake in the company, while the remaining shares are owned by public shareholders, including prominent investors like Vijay Mohanlal Parekh and Paresh Mohanlal Parekh, each with an 8.67 percent stake in the company.

Jyoti CNC Automation IPO

Jyoti CNC Automation has demonstrated strong financial performance, turning profitable in FY23 with a net profit of Rs 15.06 crore, compared to a loss of Rs 48.3 crore the previous year. During the same period, the company’s revenue from operations grew by 24.5 percent to reach Rs 929.3 crore. In the first six months of FY24, the company reported a net profit of Rs 3.35 crore on a revenue of Rs 509.8 crore.

Equirus Capital, ICICI Securities, and SBI Capital Markets have been appointed as the merchant bankers for the IPO, overseeing the entire process to ensure a successful launch on January 9, 2024.

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