Jyoti CNC Automation lists at 12.4% premium at Rs 372 per share on the BSE

Jyoti CNC Automation Limited is a manufacturer and supplier of a diverse range of CNC machines, debuted on the Indian stock market today.

Upon its debut on the NSE, the stock opened at Rs 370 per share, reflecting an 11.78% premium compared to the final issue price of Rs 331 per share. Meanwhile, the stock debuted on the BSE at Rs 372 per share, representing an impressive 12.39% premium compared to the listing. The current market capitalisation of the company stands at Rs 8,460 crore.

IPO Proceeds 

The company intends to use the net proceeds from the Fresh Issue for the following purposes: Repayment of the company’s borrowing, Funding of working capital requirement, and general corporate purposes.

Company profile

Jyoti CNC Automation Limited is a prominent manufacturer and supplier of a diverse range of CNC machines. Specialising in CNC turning centers, CNC turning-milling centers, CNC vertical machining centers (VMCs), CNC horizontal machining centers (HMCs), simultaneous 3-axis CNC machining centers, simultaneous 5-axis CNC machining centers, and multi-tasking machines, the company caters to a broad spectrum of industrial needs.

Its extensive customer base includes renowned entities such as the Indian Space Applications Center – ISRO, BrahMos Aerospace Thiruvananthapuram, Turkish Aerospace, Uniparts India, Tata Advances System, Tata Sikorsky Aerospace, Bharat Forge, Shakti Pumps (India), Shreeram Aerospace and Defence, Rolex Rings, Harsha Engineers, Bosch Limited, HAWE Hydraulics, Festo India, Elgi Rubber, National Fittings, and various others.

Jyoti CNC boasts a comprehensive product lineup, featuring 200 types across 44 series. Over the past three fiscal years, the company has successfully supplied more than 7,200 machines to over 3,000 clients globally, spanning regions such as India, Europe, North America, and select parts of Asia. Since April 1, 2004, Jyoti CNC has delivered a remarkable total of over 30,000 CNC machines worldwide.

Subscription details: 

On January 11, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 40.49 times. The public issue received remarkable interest, with the retail category being subscribed 27.50 times, the QIB category achieving a subscription rate of 46.37 times, and the NII category reaching a subscription rate of 38.33 times.

The company attracted Rs 447.75 crore from various anchor investors by allocating 13.52 lakh equity shares at Rs 331 per share. The complete lock-in period for these anchor investors ends on May 28, 2024.

The IPO price range was set between Rs 315 and Rs 331, with a face value of Rs 2 per share and a lot size of 45 shares. The total size of the company’s IPO was Rs 1000 crore, and the final share issue price was fixed at Rs 331 each.

Financial Performance:

Conclusion: 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have earned an impressive multibagger 12.39% return over its final issue price on the listing day itself. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.