Jyoti CNC Automation sets Rs 315-331 price band for Rs 1,000-cr IPO opening Jan 9

Jyoti CNC Automation IPO price band at Rs 315-331 per share

Jyoti CNC Automation, a metal-cutting computer numerical control (CNC) machines manufacturer, has fixed the price band at Rs 315-331 per share for its Rs 1,000-crore initial public offering.

The bidding for the Jyoti CNC Automation IPO will start from January 9 and will continue till January 11, while the anchor book will be opened for a day on January 8.

The IPO consists of only a fresh issue component; hence the entire issue proceeds will go to the Rajkot-based company. It has reserved Rs 5 crore worth of shares for its employees and will issue those shares at a discount of Rs 15 each to the final issue price.

The company that supplies diverse portfolios of CNC machines to industries such as aerospace, defence and medical enjoyed third-largest market share in India accounting approximately 10 percent of the market share in India in FY23.

With two manufacturing facilities in Gujarat, and one in France, Jyoti CNC, which is also the prominent manufacturer of simultaneous 5-Axis CNC machines in India, has supplied over 8,400 CNC machines to more than 3,500 customers in India and across Asia (excluding India), Europe, North America and rest of the world in the last three fiscals.

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It has an order book of Rs 3,315.33 crore as of September 2023, including Rs 304.92 crore worth of orders from an entity in the electronics manufacturing services (EMS) industry.

On the financials front, the company has turned into the black with a net profit of Rs 15.06 crore for the year ending March FY23, against loss of Rs 48.3 crore. The profitability was supported by topline, operating margin, other income and exceptional income (profit on waiver of loan).

Revenue from operations in FY23 at Rs 929.3 crore increased by 24.4 percent over previous year, while EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 34 percent on-year to Rs 97.4 crore with margin expansion of 74 bps at 10.47 percent for FY23.

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

Jyoti CNC has reserved 75 percent of the IPO size for qualified institutional buyers, 15 percent for high net-worth individuals, and the remaining 10 percent for retail investors.

Investors can bid for a minimum of 45 equity shares and in multiples of 45 shares thereafter. The minimum application size for retail investors will be Rs 14,895 for 45 equity shares and the maximum they can invest will be Rs 1,93,635 for 585 equity shares as they are not allowed to exceed investment limit of Rs 2 lakh.

After closing the issue, the company will finalise the basis of allotment of IPO shares by January 12 and the equity shares will be credited to demat accounts of successful investors by January 15. The stock will start trading on the bourses on January 16, as per the IPO schedule.

The Jyoti CNC Automation IPO will be the first public issue as well as the first listing in new year 2024.