Jyoti CNC Automation aims at raising ₹1,000 crore via IPO

BILKULONLINE

Ahmedabad, Jan 6: Jyoti CNC Automation Limited IPO is all set to open from 9th January to 11th January 2024. The company makes metal cutting computer numerical control (CNC) machines. The IPO includes a fresh issue of 30,211,480 shares worth ₹1000 cr. The share allotment date is 12th January, and the IPO will be listed on 16th January on the stock exchanges. The price band for this IPO is ₹315 to ₹331 per share and the lot size is 45 shares.   

Jyoti CNC Automation IPO has a face value of ₹2 per share and the price band has been set in the range of ₹315 to ₹331 per share. The final price will be discovered within this band. The IPO of Jyoti CNC Automation Ltd will be entirely a fresh issue of with no offer for sale (OFS) component in the issue. The fresh issue portion of the IPO of Jyoti CNC Automation Ltd comprises the issue of 3,02,11,480 shares (302.11 lakh shares approximately), which at the upper price band of ₹331 per share will translate into a fresh issue size of ₹1,000 crore. Since there is no offer for sale (OFS), the fresh issue portion will also double up as the overall issue size.

Jyoti CNC Automation financials:

In FY23, the company’s revenues rose 24% to Rs 929 crore. Profit for the same period was at Rs 15 crore as against a loss of 48 crore a year ago. In the six months ended September 2023, revenues stood at 509 crore and profit came in at Rs 3.3 crore.

Objectives of Jyoti CNC Automation IPO:

•  To fund working capital requirements. 
  ●    To prepay or repay full/partial borrowings obtained by the company. 
  ●    General corporate purpose. 

Established in 1991, Jyoti CNC Automation Limited makes metal cutting computer numerical control (CNC) machines. The company ranks third for having the largest market share in India accounting for around 10% as of FY2023. Globally, it has a market share of 0.4% and ranked 12th in the calendar year 2022.  

Jyoti CNC Automation manufacturers and supplies 5-Axis CNC machines, CNC Turning Centers, CNC Turn Mill Centers, CNC Vertical Machining Centers (VMCs) and CNC Horizontal Machining Centers (HMCs) for clients in different industries such as aerospace and defence, auto and auto components, general engineering, EMS, dies and moulds, and others.

Since 2004, the company has supplied 30,000+ CNC machines in India and abroad. As of September 2023, it offers 200+ variants in 44 product series. 

As of June 30, 2023, Jyoti CNC Automation had an order book of Rs 3,143 crore. Equirus Capital, ICICI Securities, and SBI Capital Markets are the book running lead managers to the issue (BRLMs). The equity shares of the company will be listed on BSE and NSE.

Jyoti CNC Automation Board consists of  Parakram Jadeja as its Chairman & Managing Director,  Lorem Dolor Wholetime Director and other directors are  Vikramsinh Raghuvirsinh Rana, Sahadevsing Lalubha Jadeja, Vijay Vaman Paranjape, Pravinchandra Ratilal Dholakia, Yogesh Damodardas Kathrecha, Jignasa Pravinchandra Mehta and Rikesh Chand.

Jyoti CNC Automation’s top team comprising of Prakram Jadeja the CMD and WTD Lorem Dolor were in Ahmedabad on Friday to announce the details of the forthcoming IPO with the media members.

Disclaimer: Investors must study and learn on their own all about the company before investing in it.