Jyoti CNC Automation IPO:Price,Date,Gmp,Details,Overview
Jyoti CNC Automation IPO Apply Date:
Jyoti CNC Automation a leading manufacturer and supplier of CNC machines, is launching its initial public offering (IPO) on January 9, 2024. The company is looking to raise Rs 1,000 crore from the issue, which will close on January 11, 2024. The price band for the IPO is set at Rs 315-331 per share, with a lot size of 45 shares.
What is CNC Manufacturing?
CNC stands for computer numerical control, which is a process of using computers to control machines that perform various tasks such as cutting, drilling, milling, and turning. CNC machines are widely used in various industries such as aerospace, defence, automotive, medical, and engineering.
CNC manufacturing offers several advantages over conventional methods, such as:
Higher accuracy and precision
Faster production and delivery
Lower wastage and cost
Greater flexibility and customization
Enhanced safety and quality
Why Jyoti CNC Automation?
Jyoti CNC Automation is one of the leading players in the CNC manufacturing industry in India, with a market share of 18.5% as of March 20231. The company has a diversified product portfolio, offering 200 types of CNC machines across 44 series, catering to various sectors such as aerospace, defence, railways, power, oil and gas, and metal cutting1.
The company has a strong order book of Rs 3,320 crore as of September 2023, which provides revenue visibility for the next three years1. Out of the total order book, 57% is contributed by the aerospace and defence sector, which is expected to grow at a CAGR of 15% by 20251.
The company has also invested heavily in research and development, spending Rs 154 crore in the last three years1. The company has filed 32 patents and has received 18 awards for innovation and excellence1. The company has also collaborated with prestigious institutions such as ISRO, DRDO, IITs, and NITs for various projects1.
The company has a robust financial performance, with a revenue and EBITDA CAGR of 27% and 75%, respectively, in the last two years1. The company has also improved its margins and profitability, with an EBITDA margin of 28.6% and a net profit margin of 12.4% in FY231.
How to Apply Jyoti CNC Automation ipo?
The IPO is open for subscription from January 9, 2024 to January 11, 2024. The investors can apply for the IPO through online platforms such as Zerodha, Upstox, Groww, Paytm Money, etc. The investors can also apply through offline modes such as bank branches, brokers, or post offices.
The investors need to have a demat account and a UPI ID to apply for the IPO. The investors can bid for a minimum of 45 shares and in multiples thereof. The maximum amount of investment for retail investors is Rs 1,93,635, while for non-institutional investors, it is Rs 9,97,9651.
The allotment of shares will be finalized on January 12, 2024, and the refunds will be initiated on January 15, 2024. The shares will be credited to the demat accounts of the investors on January 15, 2024, and the listing will take place on January 16, 20241.
Should You Invest in the Jyoti CNC Automation IPO?
The IPO of Jyoti CNC Automation is a promising bet on the CNC manufacturing industry, which is expected to grow at a CAGR of 10% by 20251. The company has a strong competitive edge, a diversified product portfolio, a robust order book, a solid financial performance, and a high growth potential.
The IPO is also reasonably priced, with a price-to-earnings (PE) ratio of 25.6, which is lower than the industry average of 28.71. The company also offers a healthy return on equity (ROE) of 22.8%, which is higher than the industry average of 18.9%1.
Jyoti CNC Automation ipo Gmp
On the second day of the bidding process, the IPO was subscribed 3.24 times, with the retail investors portion being subscribed nearly 10 times. The GMP or grey market premium for Jyoti CNC Automation IPO is +77 . The issue was fully booked on day 2 on strong retail and NII interest. The allotment for the Jyoti CNC Automation IPO is expected to be finalized on Friday, January 12, 2024 .
Jyoti CNC Automation company overview
Jyoti CNC Automation Limited is a leading manufacturer of CNC machines with a diverse portfolio of products and solutions for various industries. They offer CNC turning, milling, horizontal, multi-tasking, 5-axis and 3-axis machining centers, as well as other metal cutting technologies.
They are one of the world’s leading manufacturers of CNC machines with the second and twelfth largest market share, in India and globally, respectively. In Fiscal 2022, they were the second largest CNC machine manufacturer in India and accounted for approximately 8% of the market share. They rely on their expertise built over 2 decades of presence and strong R&D capabilities to deliver customized solutions to their customers across diverse set of industries including aerospace and defense, auto and auto components, general engineering, EMS, dies and molds, and others.
They have technology centers at Rajkot and have their sales and service branches in all the major cities of India.
Jyoti CNC Automation holds a prominent position as a manufacturer of metal-cutting CNC machines, boasting an impressive clientele that includes ISRO, Tata Advanced System, Bharat Forge, and others
However, the IPO also carries some risks, such as:
Dependence on a few customers and sectors for a large portion of revenue
Exposure to fluctuations in raw material prices and foreign exchange rates
Competition from domestic and international players
Regulatory and legal uncertainties in the aerospace and defence sector
Therefore, the investors should weigh the pros and cons of the IPO before investing. The investors should also consider their risk appetite, investment horizon, and financial goals before applying for the IPO.