In a significant move in the financial markets, Jyoti CNC Automation Limited has disclosed comprehensive details of its upcoming Initial Public Offering (IPO). The IPO is set to make waves with a price band fixed at ₹315 to ₹331 per equity share of face value ₹2.
Jyoti CNC Automation IPO Schedule and Subscription Details
Investors keen on Jyoti CNC Automation can mark their calendars for the IPO subscription period. The IPO date of subscription scheduled on Tuesday, January 9, and will close on Thursday, January 11. Anchor investors are in focus with their allocation which schedule for Monday, January 8. This crucial phase precedes the opening of subscriptions, creating anticipation in the market.
Pricing Dynamics and Ratio Insights
The floor price for the IPO stands at 157.50 times the face value of equity shares. While the cap price reaches 165.50 times the face value. A critical metric for investors, the price-to-earnings ratio based on diluted earnings per share (EPS) for the financial year 2023 is set at 324.51 times at the upper end and 308.82 times at the lower end of the price band.
Lot Size and Reservation Breakdown
Potential investors should take note of the lot size for the Jyoti CNC Automation IPO, set at 45 equity shares, with multiples available thereafter. The company has allocated shares strategically. By reserving 75% for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and 10% for retail investors. Additionally, eligible employees participating in the employee reservation segment can benefit from a ₹15 discount per equity share.
Jyoti CNC Automation Post-IPO Developments and Listing Date
Post the IPO closure, the basis of allotment of shares is expected to be finalized on Friday, January 12. The company is committed to initiating refunds on Monday, January 15, with share credits to the demat accounts of allottees on the same day. Investors eyeing the listing can anticipate Jyoti CNC’s shares to be list on both BSE and NSE on Tuesday, January 16.
Insights into Jyoti CNC Automation Limited
Jyoti CNC Automation Limited, headquartered in India, specializes in the manufacturing and distribution of CNC machinery. Their product line boasts multitasking machines, simultaneous 3-axis and 5-axis CNC machining centers, CNC turning centers, CNC turning-milling centers, CNC vertical machining centers (VMCs), and CNC horizontal machining centers (HMCs).
Key Promoters and Market Positioning
The company’s promoters, namely Vikramsinh Raghuvirsinh Rana, Parakramsinh Ghanshyamsinh Jadeja, Sahdevsinh Lalubha Jadeja, and Jyoti International LLP, underscore the strong leadership backing the enterprise. In comparison to listed peers such as Elgi Equipments Limited, Lakshmi Machine Works Limited, Triveni Turbine Limited, TD Power Systems Limited, and Macpower CNC Machines Ltd, Jyoti CNC Automation positions itself as a formidable player.
IPO Fund Utilization Plan
Jyoti CNC Automation’s IPO, valued at ₹1,000 crore, is an entirely fresh issue, with no offer for sale (OFS) component. The net proceeds from the IPO earmarked for crucial purposes. Which includes financing the company’s long-term working capital needs, repaying or prepaying some of its borrowings, and addressing general corporate requirements.
Company Expectations Post Listing
The company anticipates multiple advantages post the listing of equity shares on stock exchanges. These include enhancing visibility and brand image among existing and potential customers. By creating a public market for equity shares in India, and facilitating broader market participation.
IPO Management and Registrar Details
“Furthermore, our firm anticipates gaining advantages from the listing of equity shares on stock exchanges, aiming to boost our company’s visibility and brand image among both existing and potential customers. This move also serves to establish a robust presence in the public market for our company’s equity shares in India,” stated Jyoti CNC Automation in its RHP.
The book running lead managers for the Jyoti CNC Automation IPO are Equirus Capital Private Limited, ICICI Securities Limited, and SBI Capital Markets Limited. Handling the registration process is Link Intime India Private Ltd.
As investors eagerly await the IPO launch. The detailed insights provided shed light on Jyoti CNC Automation’s strategic positioning, financial dynamics, and growth plans. The IPO poised not just as a capital-raising event but as a strategic move to strengthen the company’s market presence. And also foster sustained growth in the dynamic CNC machinery sector. Investors, both institutional and retail, expected to scrutinize the offering, considering the industry landscape and the potential for future returns.
Disclaimer: The information provided in this article is for informational purposes only. This information should not be construed as financial or investment advice. Investors encouraged to conduct their own research and consult with qualified, certified experts before making any investment decisions.
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