Jyoti CNC Automation IPO Receives Robust Response

Jyoti CNC Automation IPO Receives Robust Response

VoM News Desk | January 10, 2024 | 10:44 AM IST | Breaking News | Follow on Google News

Jyoti CNC Automation IPO Receives Robust Response/Company website

Jyoti CNC Automation IPO Receives Robust Response

The Jyoti CNC Automation IPO kicked off the IPO season on a high note, witnessing substantial investor interest on its first day of subscription, with the overall subscription standing at 2.52 times. Notably, retail investors showcased overwhelming enthusiasm, subscribing to the retail segment by 8.28 times. The Non-Institutional Investors (NII) segment witnessed a subscription of 3.63 times, while the Qualified Institutional Buyers (QIB) portion experienced a 2% subscription, and the employee segment saw a subscription of 3.69 times.

About Jyoti CNC Automation Limited

Jyoti CNC Automation Limited, a manufacturer and supplier of CNC machines headquartered in India, offers an array of CNC machinery including multi-tasking machines, CNC turning-milling centres, and more.

Financial Performance and IPO Details

The company exhibited commendable financial growth, marking a 27% increase in revenue and an impressive 131.18% surge in profit after tax (PAT) between fiscal years ending March 31, 2023, and March 31, 2022. The IPO, worth ₹1,000 crore, comprises a fresh issue with no offer for sale (OFS) component, aimed at fulfilling long-term working capital requirements, repaying borrowings, and general corporate purposes. Additionally, the IPO aims to capitalize on listing benefits, augmenting the company’s visibility, and establishing a public market for equity shares in India.

Market Dynamics and Brokerage Recommendations

According to market experts, the CNC machines market globally is set to witness a growth rate of 10.3% between 2023 and 2027, propelled by increasing automation and software utilization across industries. Jefferies recommended a ‘Subscribe’ rating for the IPO, citing improved market share, strong order books, and growth potential as positive indicators. Marwadi Financial Services also recommended a ‘Subscribe’ rating, emphasizing the company’s leading position in the CNC machine manufacturing segment and its diversified global clientele.

Grey Market Premium and Estimations

The Grey Market Premium (GMP) for the Jyoti CNC Automation IPO stood at +77, indicating a premium of ₹77 in the grey market. Based on this premium and the upper end of the IPO price band, the estimated listing price was expected at ₹408 per share, a 23.26% increase from the IPO price of ₹331. The GMP signifies investors’ willingness to pay a premium over the issue price, reflecting strong market sentiments.

The IPO’s positive reception and the substantial grey market premium hint at favorable prospects for Jyoti CNC Automation’s market debut, supported by optimistic investor sentiment and the company’s growth potential in the CNC machinery segment.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.