Jyoti CNC Automation IPO received a respectable response from investors on the very first day, especially from retail, employees, and non-institutional investors (NIIs). On January 9, a Tuesday, the issue went up for bid.
Also Read: Jyoti CMC Automation (IPO) is scheduled for launch on January 9: Do you want to skip or subscribe?
Right now, on the unofficial gray market, the company’s shares are selling for more than Rs 95. On the stock market, the company’s shares are anticipated to list at Rs 426, a 28.7% rise over the issue price of Rs 331, given the current grey market premium (GMP) of Rs 95.
The retail sector had the highest subscription rate at 3.82 times, with 0.91 times as of 11:54 am. Qualified institutional buyers (QIBs) have not yet participated, although non-institutional investors (NIIs) have subscribed 0.75 times.
The data shows that by 12.30 pm on Tuesday, January 9, buyers bid 1.10 times more for 1,92,37,680 equity shares than were available for the subscription. Thursday, January 11 is the last day of the issue’s three-day bidding period.
Created in January 1991, Jyoti CNC Automation is a manufacturer and supplier of CNC machinery with 200 types spread across 44 series. It specializes in a wide variety of CNC machinery. In the manufacturing sector, CNC machines—also known as computer numerical control machines—are essential.
Views on the Jyoti CNC Automation issue are divided among brokerage firms. As a result of the issue’s low profitability, loss-making nature, and growing debt, some advise against bidding for it in the long run, citing the issue’s robust business and market share.
JCL, which employs over 2,600 people and has a skilled leadership team, is committed to improving operations. This is demonstrated by continuous process engineering innovations, like plans for a cupola furnace and a specialized sand processing unit, which are intended to increase productivity in their foundry operations, according to Ventura Securities, which gave the company a “subscribe” rating.
Prior to going public, Jyoti CNC Automation has finally allocated 1,35,27,190 equity shares at a price of Rs 331 each, raising Rs 447.75 crore from anchor investors. 15% of the shares will go to non-institutional investors (NIIs), with the remaining 75% of the shares reserved for qualified institutional bidders (QIBs). Retail investors will receive the remaining 10% of the net offer.
According to Hensex Securities, which has a “subscribe for long-term” rating on the issue, Jyoti CNC has a well-diversified global customer base spread across end-user industries, a focus on technology and the ability to deliver innovative solutions bolstered by dedicated R&D facilities, and vertically integrated operations which enable customization and production efficiencies.
Nonetheless, it listed the company’s losses, its prior record of negative return on equity, its high debt equity ratio, low debt service coverage ratio, huge debt servicing liabilities, and significant debt as the main business risks.
The registrar for the Jyoti CNC Automation IPO is Link Intime India, while the book running lead managers for the offering are Equirus Capital, ICICI Securities, and SBI Capital Markets. Tuesday, January 16, 2024 is the planned listing date for the company’s shares on the BSE and NSE.