Jyoti CNC Automation makes decent debut, lists at 12% premium to IPO price

Jyoti CNC IPO: Ahead of the listing, shares were trading at an 11 percent premium in the grey market

Jyoti CNC Automation made a decent debut, listing at a 12.3 percent premium over the IPO price on January 16. The stock opened at Rs 370 on NSE and Rs 372 on BSE against the issue price of Rs 331.

Analysts were expecting the stock to list with a 15-18 percent premium between Rs 380 and Rs 390.

Ahead of the listing, the stock was trading at an 11 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

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The issue received a strong response and was subscribed 38.5 times. Qualified institutional buyers (QIB) were at the forefront, picking 44.13 times the allotted quota. Retail investors bought 26.1 times and high net-worth individuals (HNI) purchased 36.4 times their allotted quota.

The IPO opened for subscription on January 9 and closed on January 11. The price band for the issue was fixed at Rs 315-331 per share. The Rs 1,000 crore public offer was entirely a fresh issue of 3 crore shares.

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The company will use the proceeds to finance long-term working capital needs, repay some of the loans and the remaining amount will be used for general corporate purposes.

Equirus Capital, ICICI Securities, and SBI Capital Markets were the lead managers of the IPO and Link Intime India was the registrar.

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Jyoti CNC Automation is a manufacturer and supplier of metal-cutting computer numerical control (CNC) machines. Its customers include ISRO, BrahMos Aerospace, Turkish Aerospace, Uniparts India, Tata Advances System, Tata Sikorsky Aerospace, Bharat Forge, Shakti Pumps, Rolex Rings, Bosch Limited, HAWE Hydraulics, Festo India and Elgi Rubber.