The Jyoti CNC Automation IPO, the first public issue in the new calendar year, is set to hit Dalal Street on January 9 with plans to raise up to Rs 1,000 crore. The price band for the offer will be announced soon.
The initial public offering comprises only a fresh issue by the company and there is no offer-for-sale component.
The public issue will close on January 11, while the anchor book of the offer will be launched for a day on January 8.
The Gujarat-based company has reserved shares worth Rs 5 crore for its employees. The IPO, excluding the employee portion, is the net issue.
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Around 75 percent of the net issue size has been reserved for qualified institutional buyers, 15 percent for high net-worth individuals (non-institutional investors) and the remaining 10 percent for retail investors.
The metal-cutting computer numerical control (CNC) machines manufacturer will utilise Rs 475 crore of net fresh issue proceeds for repaying debts and further Rs 360 crore for long-term working capital requirements. The remaining net fresh issue money will be kept for general corporate purposes.
The company with the third-largest market share in metal-cutting CNC machines manufacturing in India, accounting for approximately 10 percent of the market share in FY23, caters to several companies in the aerospace, defence and medical sectors, including Space Applications Centre – ISRO, BrahMos Aerospace Thiruvananthapuram, Turkish Aerospace, Tata Advanced System, Tata Sikorsky Aerospace, Bharat Forge, Shreeram Aerospace and Defence LLP, Rolex Rings, Omnitech Engineering, Bosch Limited, HAWE Hydraulics, Festo India, and Elgi Rubber Company.
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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.
The Parakramsinh Ghanshyamsinh Jadeja, Sahdevsinh Lalubha Jadeja, Vikramsinh Raghuvirsinh Rana, and Jyoti International LLP-promoted company operates its 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.
Promoters hold 72.13 percent stake in the company, while the rest is owned by public shareholders, including Vijay Mohanlal Parekh and Paresh Mohanlal Parekh who have 8.67 percent each in the company.
Jyoti CNC Automation turned in black in FY23 with a profit a Rs 15.06 crore as against a loss of Rs 48.3 crore a year back. Revenue from operations during the same period grew 24.5 percent to Rs 929.3 crore. Net profit in the six months period ended September FY24 stood at Rs 3.35 crore on a revenue of Rs 509.8 crore.
Equirus Capital, ICICI Securities, and SBI Capital Markets are appointed as the merchant bankers to the issue.
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