Jyoti CNC Automation has filed draft papers with the market regulator Securities and Exchange Board of India to raise Rs 1,000 crore through an initial public offering.
The IPO will only be a fresh issue of Rs 1,000 crore, and won’t have an offer-for-sale portion, the computerised numerical control (CNC) machine manufacturer said in the draft red herring prospectus submitted to SEBI on September 1.
The company may consider a pre-IPO placement of Rs 200 crore before filing the red herring prospectus with the registrar of the companies. The fresh issue size will get reduced accordingly.
The company will use the proceeds to repay debt of Rs 450 crore, to meet long-term working capital requirements (Rs 300 crore) and for general corporate purposes.
The Gujarat-based company, which claims to have the 12th largest market share in the global CNC machine industry, delivers customised solutions to industries such as aerospace and defence, auto and auto components, general engineering, EMS, and dies & moulds.
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It claims to have supplied over 30,000 CNC machines to customers including ISRO, BrahMos Aerospace Thiruvananthapuram, Turkish Aerospace, Tata Advances System, Bharat Forge, Shreeram Aerospace & Defence LLP and Bosch since April 2004.
With three manufacturing facilities — two in Gujarat and one in France— Jyoti CNC had an order book of Rs 3,143.06 crore as of June 30, 2023.
The company turned profitable in FY23, recording a net profit of Rs 15.06 crore against a loss of Rs 48.3 crore in the previous year, backed by exceptional gain with respect to waiver of loan.
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Revenue from operations grew 24.5 percent on-year to Rs 929.3 crore in FY23. EBITDA (earnings before interest, tax, depreciation and amortisation) were up 34 percent to Rs 97.4 crore with a margin expansion of 75 basis point at 10.48 percent, the DRHP said.
Equirus Capital, ICICI Securities and SBI Capital Markets are the merchant bankers to the issue.
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