JNK India sets price band at Rs 395-415 for IPO opening on April 23

Basis of allotment will be on April 26, refunds and credit of equity shares will be on April 29 and the firm will list on exchanges on April 30.

Maharashtra-based JNK India Ltd has set the price band at Rs 395-415 a share for its public issue opening for subscription on April 23. The IPO will close on April 25, while anchor investors will be free to place their bids on the 22nd.

Basis of allotment will be on April 26, refunds and credit of equity shares will be on April 29 and the stock will list on exchanges on April 30, according to the schedule the company has planned.

The IPO consists of fresh shares of Rs 300 crore and an offer-for-sale of up to 8.42 million shares by its existing shareholders and promoters. On the upper price band, the issue size will be Rs 650 crore and the post-issue market capitalisation is likely to be Rs 2,300 crore.

The OFS comprises up to 1.12 million shares by Goutam Rampelli, up to 2.43 million by JNK Global, up to 4.4 million by Mascot Capital and Marketing and up to 4.68 lakh shares by Milind Joshi.

The proceeds from the fresh issue will be used for funding the working capital requirements. IIFL Securities and ICICI Securities are the lead managers to the issue.

The company manufactures heating equipment for process industries like oil refineries and petrochemical plants. It handles everything from design to installation, serving both the domestic and international markets. Its biggest rival in India is Thermax Ltd. It has also expanded into flares, incinerator systems, and is planning to venture into the renewable sector with green hydrogen.

For FY23, the company reported a revenue of Rs 407.32 crore as against Rs 296.40 crore a year ago. Its oil and gas segment contributed 77 percent of the revenue. Net profit for the fiscal stood at Rs 46.36 crore versus Rs 35.98 crore last year. As of the nine months ended 2023, total debt of the firm stood at Rs 56.73 crore.

As of December 31, 2023, its order book totalled Rs 845.03 crore, with 86.29 percent from India and 13.71 percent from overseas. This robust order book, equivalent to 2.50 times its annualised revenue for the same period, shows strong revenue visibility, supported by ongoing contract negotiations for prospective projects.

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