Jyoti CNC Automation make a modest debut on the stock market following the company’s first IPO of the year, which attracted significant interest.
The shares saw a gain of 11.8% over the issue price of Rs 331 when they were listed on the National Stock Exchange (NSE) at Rs 370. At the same time, the share price was listed at Rs 372 on the Bombay Stock Exchange (BSE), which represents a 12.39% premium over the issue price.
The IPO offering price was expected by market analysts to be between Rs 360 and Rs 380 per share. Jyoti CNC Automation’s unofficial grey market share value was closely correlated with the company’s grey market premium (GMP), which was Rs 38 prior to listing.
You should be aware that Jyoti CNC Automation specializes in producing and delivering CNC machines, with a wide selection of 200 types available in 44 series.
Products from this prominent participant in the computer numerical control (CNC) machine industry are essential to the manufacturing sector.
Shares of the company are currently trading for more than Rs 95 on the unofficial gray market. The company’s shares are expected to list at Rs 426 on the stock market, which is 28.7% more than the issue price of Rs 331 considering the current grey market premium (GMP) of Rs 95.
At 3.82 times, with 0.91 times as of 11:54 am, the retail sector had the greatest subscription rate. Notwithstanding the 0.75 subscriptions made by non-institutional investors (NIIs), qualified institutional buyers (QIBs) have not yet taken part.
According to the data, by 1:30 p.m. on Tuesday, January 9, buyers bid 1.10 times more than the total number of shares available for the subscription—1,92,37,680 equity shares. The issue’s three-day bidding period ends on Thursday, January 11.
The portion allotted to retail investors witnessed a subscription of 4.39 times, compared to 1.06 times for the non-institutional investor component. 1.89 reservations were made for the staff section. On the other hand, no bids had been submitted as of the same time for the quota set aside for qualified institutional bidders (QIBs).
Jyoti CNC Automation was established in January 1991 and offers 200 different types of CNC machinery arranged into 44 series. It has a broad range of CNC machinery expertise. CNC machines, usually referred to as computer numerical control machines, are indispensable in the industrial industry.
Brokerage businesses have differing opinions regarding the Jyoti CNC Automation issue. Some suggest against long-term bidding for the issue, citing its strong business and market share, due to its low profitability, loss-making nature, and mounting debt.
JCL is dedicated to enhancing operations and has a talented leadership team with over 2,600 employees. Ventura Securities, which assigned the firm a “subscribe” rating, said that the company’s continual process engineering advances, such as plans for a cupola furnace and a specialized sand processing unit, are meant to increase productivity in their foundry operations.
Jyoti CNC Automation ultimately allotted 1,35,27,190 equity shares at a price of Rs 331 each before to going public, raising Rs 447.75 crore from anchor investors. The remaining 75% of the shares are designated for qualified institutional bidders (QIBs), with 15% going to non-institutional investors (NIIs). 10% of the net offer will be distributed to retail investors.
Hensex Securities has assigned a “subscribe for long-term” rating to the issue. The rating highlights Jyoti CNC’s focus on technology, ability to deliver creative solutions supported by specialized R&D facilities, well-diversified global customer base across end-user industries, and vertically integrated operations that facilitate customization and production efficiencies.
However, it identified the primary business risks as the company’s losses, its history of negative return on equity, its high debt equity ratio, low debt service coverage ratio, enormous debt servicing liabilities, and substantial debt