10 Key Highlights of Jyoti CNC Automation IPO

Timing

The IPO opens for subscription on January 9th and closes January 11th, 2024.

Price

The price range is Rs. 315-331 per share.

Size and Offer

Jyoti CNC aims to raise Rs. 1,000 crore through a fresh issue of 3.02 crore shares. Anchor investors can bid on January 8th.

Allocation

75% of shares are reserved for institutions, 15% for high-net-worth individuals, and 10% for retail investors.

Use of Funds

Proceeds will fund working capital needs, debt repayments, and general corporate purposes.

Minimum Investment

Retail investors can bid for a minimum of 45 shares, costing Rs. 14,175 at the lower price band.

Company Profile

Jyoti CNC manufactures and supplies CNC machines to major clients like ISRO and Bosch. They have three manufacturing facilities in India and France.

Financials

Jyoti CNC reported a profit of Rs. 15 crore and revenue of Rs. 952 crore in FY23, a turnaround from FY22s loss. Debt to equity ratio stands at 10.17x.

Risks

Dependence on top 10 customers, subsidiary losses, high debt, low RoE and RoCE compared to peers, and high price-to-earnings ratio are key concerns.

Listing

Share allotment finalisation is on January 12th, credit to demat accounts on January 15th, and listing on NSE and BSE on January 16th.