The Gujarat based manufacturer of CNC machine tools- Jyoti CNC Automation Limited has announced to launch its Initial Public Offering (IPO) on January 09, 2024. The company plans to raise Rs 1,000 crore through a fresh issuance of 3.02 crore equity shares of face value of Rs 2 each via book-building process. There is no OFS component. The price band is set at Rs 315 to Rs 331 per share. The investors can bid for a minimum of 45 shares, and in multiples of 45 shares thereafter.
The company will invite bids from the anchor investors on January 08, 2024 before the issue opens for public on January 09, 2024.
About Company
Jyoti CNC Automation Limited was incorporated on January 17, 1991, and is located in Rajkot, Gujarat. Additionally, the company has a subsidiary in Strasbourg, France named Huron. It specializes in manufacturing and supplying a wide range of CNC machines.
Along with a one-stop solution for computerized machine cutting tools, the company services and manufactures CNC Turning Center, CNC turning-milling centres, CNC Machining Center (3-4-5 Axes), CNC Horizontal Machining Center (HMCs), Vertical Line CNC Machines (VMCs) and multi-tasking machines.
In its portfolio, Jyoti CNC Automation Limited has clients with a good reputation such as BrahMos Aerospace Thiruvananthapuram, Bosch Limited, Bharat Forge, Festo India, Elgi Rubber, Indian Space Applications Center (ISRO), Harsha Engineers, HAWE Hydraulics, National Fittings, Rolex Rings, Turkish Aerospace, Tata Advances System, Tata Sikorsky Aerospace, Shakti Pumps, Shreeram Aerospace & Defense, Uniparts India and many more.
Worldwide distribution of the company handles the dealer network established by Huron. In the recent three financial years, the company has supplied over 7,200 machines to over 3,000 customers worldwide, including India, Europe, North America, and a few countries in Asia. It has 29 sales and service centers in Belgium, Italy, France, Poland, Romania and UK.
Till June 30, 2023, Jyoti CNC Automation had a total of 2,573 employees and was capable of manufacturing 4,400 machines annually in India and 121 machines annually in France.
IPO details at a glance
Equirus Capital Private Limited, ICICI Securities Limited and SBI Capital Markets Limited are the book running lead manager whereas Link Intime India Private Ltd is the registrar for Jyoti CNC Automation Limited IPO.
| IPO Application Date | January 09 to 11, 2024 |
| Listing Date | January 16, 2024 |
| Listing On | BSE, NSE |
| Issue Type | Book Built Issue |
| Face Value | ₹2 per share |
| Price Range | ₹315 to ₹331 per share |
| Lot Size | 45 shares |
| Total number of issues | aggregating up to ₹1000.00 Cr |
| Fresh Issue | aggregating up to ₹1000.00 Cr |
| Holdings before issue | 19,57,57,090 |
| Holdings after issue | 22,59,68,570 |
| Market Maker Reserve | – |
| Net Public Issues | – (excluding market maker reservation) |
| Retail Investor Quota | Maximum 10% of net offering |
| QIB Investor Quota | Minimum 75% of net offering |
| NII Investor Quota | Minimum 15% of net offering |
Important dates
The dates are mentioned as per the tentative schedule given in the Jyoti CNC Automation Limited IPO RHP document.
| IPO opening date | January 9, 2024 (Tuesday) |
| IPO closing date | January 11, 2024 (Thursday) |
| UPI mandate confirmation cut-off time | 5 PM, January 11, 2024 (Thursday) |
| Finalization of allotment basis | January 12, 2024 (Friday) |
| Credit of Shares to Demat / Refunds / Unblocking of Funds | January 15, 2024 (Monday) |
| IPO Listing Date / Trading of Share | January 16, 2024 (Tuesday) |
Company’s financials
Jyoti CNC Automation Limited recorded a 27% growth in revenue and a 131.18% rise in profit after tax (PAT) in FY23 vs FY22.
| Financial Period Ending in | 30 Sep’23 | 31 Mar’23 | 31 Mar’22 | 31 Mar’21 |
| Net Worth | 205.63 | 36.23 | -29.68 | 18.67 |
| Total Assets | 1,706.07 | 1,515.38 | 1,286.24 | 1,388.19 |
| Revenue from operations | 509.82 | 929.25 | 746.48 | 580.06 |
| EBITDA | 74.40 | 97.37 | 72.66 | 31.68 |
| EBITDA Margin | 14.59% | 10.48% | 9.73% | 5.46% |
| Profit After Tax (PAT) | 3.35 | 15.06 | -48.30 | -70.02 |
| PAT Margin | 0.66% | 1.58% | -6.44% | -11.87% |
| Cash flow from operations | 75.80 | 95.87 | 105.78 | 40.38 |
| Debt-Equity (D/E) Ratio | 3.25 | 10.17 | 19.25 | 6.44 |
| Reserves & Surplus | 213.33 | 49.14 | 11.67 | 83.11 |
| Total Borrowing | 821.40 | 834.97 | 792.16 | 725.12 |
| Amount in ₹ Crore | ||||
IPO Valuation – Key Performance Indicator
| KPI | Values |
| Return on equity (ROE) | 18.35% |
| Return on capital employed (ROCE) | 9.50% |
| Debt/Equity | 10.17 |
| Earnings Per Share (EPS) | ₹1.02 |
| Return on Net Worth (RoNW) | 18.35% |
Objects of the Issue:
The company proposes to utilise the net proceeds from the issue towards repayment and pre-payment of its borrowings, funding long-term capital requirements and general corporate expenses.
Note: The details are as per the company’s RHP document filed with SEBI.
