Jyoti CNC Automation IPO: Check allotment, listing dates, grey market premium

Jyoti CNC Automation IPO share allotment by Friday

The Jyoti CNC Automation IPO has seen healthy demand from investors. Now, the participants in the issue will keenly await the share allotment and the listing of company's shares.

The Rs 1,000-crore initial public offering has seen subscription of 37.83 times during January 9-11, with qualified institutional investors buying 43.81 times the allotted quota and high networth individuals picked 35.56 times the portion set aside for them.

Retail investors also provided good support to the issue, bidding 24.71 times the reserved portion, while employees bought 11.71 times the allotted quota.

The IPO by the Rajkot-based CNC machines manufacturer comprised only a fresh issue component and there was no offer-for-sale portion. Hence, excluding the issue expenses, all the IPO proceeds will be received by the company.

The supplier of CNC machines to industries such as aerospace, defence and medical sectors will utilise Rs 475 crore of the issue proceeds for repaying debts and further Rs 360 crore for long-term working capital requirements, besides the remaining money for general corporate purposes.

The price band for the issue was Rs 315-331 per share.

Also read: Shree Marutinandan Tubes SME IPO: Check price band, GMP, financials, risks and listing date

Jyoti CNC Automation in consultation with the National Stock Exchange will finalise the basis of allotment of IPO shares by January 12, while the equity shares will be credited to the demat accounts of successful investors by January 15.

The much-awaited listing in its equity shares will commence on the bourses with effect from January 16, as per the IPO schedule.

At the beginning of the IPO subscription period, the grey market was indicating healthy listing but now the scenario seems to have changed. Jyoti IPO shares traded at 13-15 percent premium in the grey market, an unofficial market wherein IPO shares can be bought and sold till the listing, analysts on anonymity said.

Also read: Consumer tech, EV startups likely to take lead in launching IPOs in 2024, says Kaushal Shah of Kotak

According to them, the grey market premium on the IPO opening day was around 27-28 percent premium over the upper price band.

The IPO participants look at grey market premium to know the possible listing price, though it is not the accurate and thoroughly analysed mechanism for finding the price of any IPO.

High valuations may be one of reasons for significant drop in the grey market premium as analysts are quoting it at a PE of 500x on the FY23 post issue basis, which is far higher than its peers trading in the range of 35-57x. At the upper price band, the market cap comes to around Rs 7,527.5 crore.

Also read: Post JSW Infra listing, now JSW Cement picks bankers and kicks off mega Rs 6,000-cr IPO

Barring valuations concerns, most of analysts were advised buying the IPO shares as it is one of leading CNC machine manufacturing companies globally, with diverse global customer base, growing industry demand, strong order book and improving financial performance.

The metal cutting CNC machine manufacturer operates business through its three manufacturing facilities, of which two in Gujarat and one in Strasbourg, France, with a manufacturing capacity of 4,400 machines per annum in India and 121 machines per annum in France.

Jyoti CNC Automation turned profitable in the last financial year FY23, with net at Rs 15.06 crore as against a loss of Rs 48.3 crore in previous year. Revenue from operations during the same period grew 24.5 percent to Rs 929.3 crore, while operating profit margin expanded 80 bps YoY to 10.5 percent in FY23 and operating profit grew by 34 percent to Rs 97.4 crore.

Also read: Medi Assist Healthcare Services IPO | 10 key things to know before buying the Rs 1,172-crore public issue

Net profit in the six months period ended September FY24 stood at Rs 3.35 crore on a revenue of Rs 509.8 crore.

On the topline front, aerospace and defence space contributed 20.32 percent to the revenue from operations in FY23, auto and auto components 46.7 percent, general engineering 19.58 percent, dies & moulds 9 percent and others 4.4 percent. "The order book is fairly diversified with more than 55 percent in defence, 12 percent in auto components and 9.2 percent in upcoming EMS segments which will drive the growth in the coming years," Reliance Securities said.

As of September 2023, it had an order book of Rs 3,315.33 crore, including an order of Rs 304.92 crore from an entity in the electronics manufacturing services (EMS) industry.

Investors who participated in the issue can check the share allotment status either on the IPO registrar's portal (Link Intime India) or BSE website, by following few easy steps.

On the BSE website,
1) Select issue type 'Equity' and issue name 'Jyoti CNC Automation Ltd'
2) Enter either 'Application number' or 'PAN number'
3) Check box (I am not a robot) and finally click on 'Search' button

On the IPO registrar's portal,
1) Select IPO name 'Jyoti CNC Automation Limited - IPO' in the dropdown
2) Select and accordingly enter either 'PAN', or 'Application number', or 'DP Client ID'
3) Finally click on 'Search' button

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.