Jyoti CNC Automation, a leading manufacturer of metal cutting computer numerical control (CNC) machines, has announced the opening of its Initial Public Offering (IPO) for subscription. The IPO, which will run until January 11, aims to raise fresh capital of Rs 1,000 crore.
In preparation for the IPO, Jyoti CNC Automation has already secured Rs 448 crore from anchor investors, including Nomura and Goldman Sachs. The company plans to use the net proceeds to repay some of its existing loans, fund long-term working capital requirements, and for general corporate purposes.
With its expertise built over two decades and strong research and development capabilities, Jyoti CNC Automation provides customized solutions to various industries, including aerospace, defense, automotive, engineering, and more. The company currently holds the third largest market share in India, accounting for approximately 10% of the market.
Analysts have recommended investors to subscribe to the IPO, citing Jyoti CNC Automation’s strong order book, diversified customer base, and product portfolio. Reliance Securities highlights the company’s growing market share, expanding industry demand, and improving financial profile as key strengths. Mehta Equities views the IPO as an opportunity to invest in a leading player in the metal cutting CNC machine manufacturing industry.
The IPO is priced in the range of Rs 315-331, valuing the company at a price-to-earnings ratio of 374.22x and an EV/EBITDA ratio of 85.59x, with a market cap of Rs 7,527 crore post-issue. Qualified institutional buyers have access to 75% of the offering, while retail investors and non-institutional investors have access to 10% and 15%, respectively.
Jyoti CNC Automation has shown strong financial performance, achieving a revenue and EBITDA compound annual growth rate (CAGR) of 27% and 75% respectively from FY21 to FY23. The company posted a profit of Rs 15 crore in FY23, compared to a net loss of Rs 70 crore in FY21.
Equirus Capital, ICICI Securities, and SBI Capital Markets are the book running lead managers to the IPO, and the company’s equity shares will be listed on the BSE and NSE exchanges.
Disclaimer: This article provides an overview of the Jyoti CNC Automation IPO and is not financial advice. Investors are encouraged to conduct their own research and consult with a financial advisor before making investment decisions.