Jyoti CNC Automation Limited IPO

Jyoti CNC Automation Limited presents a promising Initial Public Offering (IPO) valued at Rs. 1,000.00 crores, exclusively comprising a fresh issue of 3.02 crore shares. With its subscription window opening on January 9, 2024, and closing on January 11, 2024, the IPO is poised to offer substantial prospects to investors. The allotment for this IPO is anticipated to conclude on Friday, January 12, 2024, with the listing scheduled on BSE and NSE tentatively set for Tuesday, January 16, 2024.

Investors eyeing this opportunity should note the IPO’s price band ranging between Rs. 315 to Rs. 331 per share, catering to various investment preferences. The minimum application lot size stands at 45 shares, requiring a retail investor’s minimum investment of Rs. 14,895. However, sophisticated non-institutional investors (sNII) are mandated a minimum investment of 14 lots (630 shares), amounting to Rs. 208,530, while the bar for big-ticket non-institutional investors (bNII) is set at 68 lots (3,060 shares), totaling Rs. 1,012,860.

Equirus Capital Private Limited, ICICI Securities Limited, and SBI Capital Markets Limited serve as the book running lead managers, orchestrating the IPO’s smooth functioning. Meanwhile, Link Intime India Private Ltd has been appointed as the issue’s registrar, ensuring a seamless process for interested investors.

For more comprehensive insights, prospective investors are encouraged to refer to the Jyoti CNC Automation IPO RHP (Red Herring Prospectus) for detailed information on this lucrative investment opportunity. Don’t miss the chance to potentially capitalize on the growth prospects offered by Jyoti CNC Automation Limited!

Details of Jyoti CNC Automation IPO

Parameter	Details
IPO Date	January 9, 2024 to January 11, 2024
Face Value	₹2 per share
Price Band	₹315 to ₹331 per share
Lot Size	45 Shares
Total Issue Size	30,211,480 shares (aggregating up to ₹1,000.00 Cr)
Fresh Issue	30,211,480 shares (aggregating up to ₹1,000.00 Cr)
Employee Discount	Rs 15 per share
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Shareholding pre issue	195,757,090
Shareholding post issue	225,968,570

Jyoti CNC Automation IPO, scheduled from January 9 to January 11, 2024, boasts a face value of Rs. 2 per share, offering shares in the price range of Rs. 315 to Rs. 331 per share. The lot size is fixed at 45 shares, with a total issue size of 30,211,480 shares, aggregating up to Rs. 1,000.00 Cr, exclusively through fresh issues.

Notably, an employee discount of Rs. 15 per share is available. This Book Built Issue IPO will be listed on both BSE and NSE platforms. Pre-issue, the company holds 195,757,090 shares, which will increase to 225,968,570 post-issue, marking a significant shift in shareholding.

The IPO is designed to offer a substantial opportunity for investors, given the company’s strong fundamentals and market potential. Investors should consider this detailed information before making investment decisions in the Jyoti CNC Automation IPO.

Jyoti CNC Automation IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not less than 75% of the Net Issue
Retail Shares Offered	Not more than 10% of the Net Issue
NII (HNI) Shares Offered	Not more than 15% of the Net Issue

This delineates the allocation of shares offered to various investor categories for the Jyoti CNC Automation IPO. Qualified Institutional Buyers (QIBs) are entitled to a minimum of 75% of the net issue, while the allotment for Retail Investors is capped at a maximum of 10% of the net issue. Non-Institutional Investors (NIIs), specifically High Net Worth Individuals (HNIs), are offered up to 15% of the net issue. Such a distribution strategy aims to ensure a balanced and fair allocation of shares across different investor segments.

Jyoti CNC Automation IPO Key Dates and Schedule

Event	Date
IPO Open Date	Tuesday, January 9, 2024
IPO Close Date	Thursday, January 11, 2024
Basis of Allotment	Friday, January 12, 2024
Initiation of Refunds	Monday, January 15, 2024
Credit of Shares to Demat	Monday, January 15, 2024
Listing Date	Tuesday, January 16, 2024
Cut-off time for UPI mandate confirmation	5 PM on January 11, 2024

Investors eyeing Jyoti CNC Automation’s IPO have a clear timeline to mark on their calendars. The IPO for Jyoti CNC Automation is set to commence on January 9, 2024, and conclude on January 11, 2024.

IPO Opening Date (January 9, 2024): The IPO subscription window kicks off, allowing interested investors to participate.

IPO Closing Date (January 11, 2024): The subscription window for the IPO closes at 5 PM, marking the last day for investors to submit their applications.

Basis of Allotment (January 12, 2024): This critical step involves the allotment process, determining how the shares will be distributed among the applicants.

Initiation of Refunds & Credit of Shares to Demat (January 15, 2024): Refunds, if any, begin on this date, and shares are credited to the Demat accounts of successful applicants.

Listing Date (January 16, 2024): The shares become available for trading on the stock exchange, marking the IPO’s listing date.

For a seamless process, it’s crucial to note the cut-off time for UPI mandate confirmation, which is set at 5 PM on January 11, 2024. Investors must ensure their UPI mandates are confirmed by this deadline.

Jyoti CNC Automation IPO Lot Size

The lot size for this IPO allows investors to bid for a minimum of 45 shares, with bids subsequently placed in multiples of this base amount.

The following table outlines the minimum and maximum investment details for retail investors, Substantial High Net-worth Individuals (S-HNI), and Big High Net-worth Individuals (B-HNI)

For retail investors, the minimum application starts at 1 lot comprising 45 shares, with an approximate investment amount of Rs. 14,895. The maximum investment for retail investors allows up to 13 lots, equivalent to 585 shares, amounting to approximately Rs. 193,635.

Substantial High Net-worth Individuals (S-HNI) can bid for a minimum of 14 lots (630 shares) with an investment starting around Rs. 208,530, while the maximum bid stands at 67 lots (3,015 shares), totaling an investment of approximately Rs. 997,965.

Big High Net-worth Individuals (B-HNI) can enter with a minimum bid of 68 lots (3,060 shares), requiring an investment of approximately Rs. 1,012,860.

Understanding these lot sizes and investment ranges empowers investors to tailor their bids according to their investment capacity and objectives, ensuring a strategic approach to participating in the Jyoti CNC Automation IPO.

Application	Lots	Shares	Amount
Retail (Min)	1	45	₹14,895
Retail (Max)	13	585	₹193,635
S-HNI (Min)	14	630	₹208,530
S-HNI (Max)	67	3,015	₹997,965
B-HNI (Min)	68	3,060	₹1,012,860

Jyoti CNC Automation IPO Promoter Holding

The promoters of Jyoti CNC Automation, namely Parakramsinh Ghanshyamsinh Jadeja, Sahdevsinh Lalubha Jadeja, Vikramsinh Raghuvirsinh Rana, and Jyoti International LLP, collectively hold a significant portion of the company’s shares.

As per the available data, the Promoter Holding Pre-Issue stands at 72.66%. This percentage represents the ownership stake held by the promoters before the IPO share issuance.

However, the Share Holding Post Issue figures are not currently available. The calculation of the Promoter Holding Post-Issue would depend on the number of shares offered to the public through the IPO and any subsequent changes in the promoter’s shareholding.

The Promoter Holding Post-Issue will be determined by considering the additional shares issued through the IPO and any adjustments made after the public offering. This figure is crucial for investors to understand the proportion of ownership the promoters retain in the company following the IPO.

Share Holding Pre Issue	72.66%
Share Holding Post Issue

Key Performance Indicators (KPIs) for Jyoti CNC Automation

Key Performance Indicators (KPIs) provide essential insights into a company’s financial health and operational efficiency. Here are the relevant KPIs for Jyoti CNC Automation

P/E (Price/Earnings Ratio): The P/E ratio stands at 324.5, indicating the company’s stock price relative to its earnings per share (EPS). A high P/E ratio may suggest high growth expectations but could also signal an overvalued stock.

ROE (Return on Equity): Jyoti CNC Automation’s ROE is 18.35%. This metric reflects the company’s ability to generate profits from shareholders’ equity. A higher ROE generally indicates efficient utilization of shareholder funds.

ROCE (Return on Capital Employed): The ROCE is 9.50%, signifying the company’s ability to generate profits from the capital employed in the business. A higher ROCE is typically desired as it reflects effective utilization of capital.

Debt/Equity Ratio: Jyoti CNC Automation has a Debt/Equity ratio of 10.17, indicating the proportion of debt used to finance operations relative to shareholder equity. A high ratio may suggest higher financial risk.

EPS (Earnings Per Share): The EPS stands at Rs 1.02, representing the company’s net profit attributable to each outstanding share. A higher EPS generally indicates greater profitability.

RoNW (Return on Net Worth): RoNW mirrors the ROE, also at 18.35%, showcasing the company’s ability to generate profits concerning its net worth.

KPI	Values
P/E (x)	324.5
ROE	18.35%
ROCE	9.50%
Debt/Equity	10.17
EPS (Rs)	1.02
RoNW	18.35%

Grey Market Premium (GMP) Jyoti CNC Automation IPO

The Grey Market Premium (GMP) for the Jyoti CNC Automation IPO reflects the enthusiasm among investors ahead of its listing. As of the latest update on January 4th, 2024, at 01:00 PM, the last recorded GMP stands at Rs. 135.

Considering the IPO’s price band of Rs. 331.00, the estimated listing price is projected at Rs. 466, calculated by adding the cap price to the current GMP. This estimation suggests a potential gain of approximately 40.79% per share.

Retail and Small High Net-worth Individual (HNI) investors have shown significant interest, with expected subject to Sauda amounts of Rs. 4600 for Retail investors and Rs. 64400 for Small HNI investors.

It’s noteworthy that the GMP fluctuates based on daily market activities, and the last 7 sessions indicate an upward trend in the GMP, signaling expectations for a robust listing.

The range of GMP observed for the Jyoti CNC Automation IPO spans from Rs. 0 (the lowest) to Rs. 135 (the highest), indicating varied market sentiments and the potential for a strong listing.

GMP Date	IPO Price	GMP	Sub2 Sauda Rate	Estimated Listing Price	Last Updated
04-01-2024	₹331.00	₹135 Up	4600/64400	₹466 (40.79%)	4-Jan-2024 13:00
03-01-2024	NA	₹60 Up	—	₹60 (%)	3-Jan-2024 23:23
02-01-2024		₹0 No Change	—	₹ (0%)	2-Jan-2024 6:03
01-01-2024		₹0 No Change	—	₹ (0%)	1-Jan-2024 6:03
31-12-2023		₹0 No Change	—	₹ (0%)	31-Dec-2023 6:03
30-12-2023		₹0 No Change	—	₹ (0%)	30-Dec-2023 6:03
29-12-2023		₹0 No Change	—	₹ (0%)	29-Dec-2023 13:32

The GMP trend shows fluctuating market sentiments. On January 4th, 2024, the GMP surged to Rs. 135, indicating increased interest and potential, resulting in an estimated listing price of Rs. 466, a gain of 40.79% over the IPO price of Rs. 331.00.

On January 3rd, 2024, the GMP was Rs. 60, suggesting a positive market trend. However, specific IPO price details were not available.

From December 29th, 2023, until January 2nd, 2024, the GMP remained constant at Rs. 0, indicating stability or lack of significant market movement during this period.

Investors should monitor daily GMP trends to assess market expectations and sentiment regarding the Jyoti CNC Automation IPO. The GMP reflects market dynamics and can influence investors’ decisions regarding IPO subscription and potential listing gains.

Grey Market Premium (GMP)

Grey Market Premium (GMP) in relation to an IPO is crucial for investors. The GMP represents the unofficial and unregulated market where the IPO is traded before its official listing. It serves as an indicator of market sentiment and potential listing-day performance.

A positive GMP suggests a likelihood of the IPO trading at a premium on the day of listing, potentially yielding profits for investors who subscribed to the IPO. Conversely, a negative GMP implies a probable discount on the listing day, posing a risk for investors in terms of immediate returns.

It’s essential to note that IPO GMP is highly volatile and speculative. Relying solely on GMP for investment decisions in the Jyoti CNC Automation IPO or any other IPO carries inherent risks. Investors should consider multiple factors beyond the GMP, including the company’s fundamentals, industry outlook, financial health, management quality, and market conditions.

Overview of Jyoti CNC Automation Limited

Jyoti CNC Automation Limited, established in January 1991, stands as a prominent manufacturer and supplier of CNC machines, with its headquarters in India. Specializing in a comprehensive range of CNC machines, the company caters to a diverse market. Their product lineup spans CNC turning centres, vertical and horizontal machining centres, simultaneous 3-axis and 5-axis machining centres, multi-tasking machines, among others.

Boasting an impressive clientele including renowned entities like ISRO, BrahMos Aerospace, Turkish Aerospace, and many others, Jyoti CNC Automation Limited has showcased its reliability and quality in the CNC machinery domain. Over the last three financial years, they’ve supplied over 7,200 machines to 3,000+ customers across India, Europe, North America, and parts of Asia, contributing to a global footprint.

With a robust distribution network leveraging Huron’s established dealer network and 29 sales and service centres across Europe, the company ensures a wide reach and efficient customer support.

Operating from three manufacturing facilities, two in Rajkot, Gujarat, and one in Strasbourg, France, Jyoti CNC possesses the capabilities for complete product line design, development, and manufacturing.

The company’s production capacity as of June 30, 2023, stood at 4,400 machines per year in India and 121 machines per year in France, showcasing their substantial manufacturing capabilities.

Highlighting their robust financials, the company reported an order backlog of Rs. 31,430.56 million as of June 30, 2023, including a significant order from an electronic manufacturing services (EMS) company amounting to Rs. 2,602.50 million.

Employing a dedicated workforce of 2,573 employees as of June 30, 2023, Jyoti CNC Automation Limited stands as a key player in the CNC machinery industry, known for its extensive product range, global presence, and commitment to quality and innovation.

Restated Consolidated Financial Information for Jyoti CNC Automation Limited

Period Ended	30 Sep 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	1,706.07	1,515.38	1,286.24	1,388.19
Revenue	510.53	952.60	750.06	590.09
Profit After Tax	3.35	15.06	-48.30	-70.03
Net Worth	205.63	36.23	-29.68	18.67
Reserves and Surplus	213.33	49.14	11.67	83.11
Total Borrowing	821.40	834.97	792.16	725.12

The financials exhibit a notable upward trend in revenue and profit after tax over the periods stated. Between March 31, 2023, and March 31, 2022, there was a substantial 27% increase in revenue. Similarly, the profit after tax surged by 131.18% during the same period, showcasing a remarkable improvement in profitability.

Regarding the balance sheet, the assets of the company have steadily increased from Rs. 1,286.24 crore on March 31, 2022, to Rs. 1,515.38 crore on March 31, 2023, and further to Rs. 1,706.07 crore on September 30, 2023, indicating a consistent growth trajectory.

Despite fluctuations in the net worth over these periods, the reserves and surplus have shown a positive trend, indicating an increase in retained earnings.

Total borrowing has seen slight variations, standing at Rs. 792.16 crore on March 31, 2022, increasing to Rs. 834.97 crore on March 31, 2023, and further to Rs. 821.40 crore on September 30, 2023.

Objectives of Jyoti CNC Automation IPO’s Fund Utilization

The objectives of the Jyoti CNC Automation IPO, concerning the utilization of the Net Proceeds from the Fresh Issue, are as follows:

Repayment and/or Pre-payment of Borrowings: The company intends to use a portion of the funds raised to repay or pre-pay certain borrowings fully or partially. This move aims to reduce the company’s debt burden, potentially improving its financial leverage and interest obligations.

Funding Long-Term Working Capital Requirements: Another key objective involves allocating funds to support the long-term working capital needs of the company. This infusion of capital will aid in sustaining and expanding operational activities, ensuring smooth and efficient business operations in the long run.

General Corporate Purposes: Additionally, a part of the Net Proceeds will be allocated for general corporate purposes. This includes various routine operational expenses, potential strategic initiatives, technological advancements, and other miscellaneous expenses that contribute to the company’s overall growth and development.