Heating equipment maker JNK India files IPO papers with Sebi

JNK India IPO comprises fresh issue of Rs 300 crore, and OFS of 84.21 lakh shares

Maharashtra-based heating equipment maker JNK India has filed draft red herring prospectus with the regulator Sebi for its public issue plans.

As per the filing, the initial public offering comprises a fresh issuance of shares worth Rs 300 crore by the company, and an offer-for-sale (OFS) of 84,21,052 equity shares by promoters and investor.

Goutam Rampelli, Dipak Kacharulal Bharuka, JNK Heaters, Mascot Capital and Marketing, and Milind Joshi are the selling shareholders in the OFS.

The fired heater company may consider issue of Rs 60 crore worth shares via private placement, before filing the red herring prospectus with the ROC. In case the pre-IPO placement is undertaken by the company, then the said amount will be reduced from the fresh issue size.

The fresh issue proceeds will be utilised mainly for working capital requirements amounting to Rs 275.72 crore and the remaining for general corporate purposes & offer expenses.

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Promoters Goutam Rampelli, Dipak Kacharulal Bharuka, JNK Heaters, Mascot Capital and Marketing, hold 94.56 percent shareholding in the company, while public shareholder Milind Joshi has 4.96 percent stake.

South Korean company JNK Heaters, and Mascot Capital are the corporate promoters in the company with 25.79 percent and 46.62 percent stakes respectively.

JNK India has reported healthy financial performance in the past years, with profit growing at a CAGR of 67.75 percent during FY21-FY23 to Rs 46.4 crore in FY23. Revenue increased at a CAGR of 71.97 percent to Rs 407.3 crore and EBITDA (earnings before interest, tax, depreciation and amortisation) grew at a CAGR of 68.09 percent during the same period, to Rs 73.5 crore in FY23.

EBITDA margin stayed in the range of 18-19 percent and PAT margin at 11-12 percent range in the past three financial years.

JNK India is one of the leading heating equipment companies in India in terms of new order booking between FY21-FY23, with capabilities in thermal designing, engineering, manufacturing, supplying, installing and commissioning process fired heaters, reformers and cracking furnaces.

The process fired heaters, reformers and cracking furnaces (together heating equipment) are required in process industries such as oil and gas refineries, petrochemicals, fertilisers, hydrogen and methanol plants, etc.

IIFL Securities, and ICICI Securities are the merchant bankers to the issue.