- The listing premium is justified, as the company is backed by a strong order book from aerospace and defence, healthy visibility on the top line as well as the bottom line and growing demand in the CNC machine industry
- Jyoti CNC’s ₹1,000-crore public offer was subscribed 38.5 times at close
- Capital market: With Equirus leading on all fronts, Jyoti CNC IPO oversubscribed
NE BUSINESS BUREAU
MUMBAI, JAN 16
The shares of Gujarat-based CNC (computer numerical control) machines manufacturer Jyoti CNC Automation listed on both the bourses on Tuesday — the first mainboard IPO listing of 2024. The stock listed at a premium of 12.4% at ₹372 a share on the BSE. It listed at ₹370 on the NSE, a premium of 11.78% against an issue price of ₹331.
The listing premium is justified, as the company is backed by a strong order book from aerospace and defence, healthy visibility on the top line as well as the bottom line and growing demand in the CNC machine industry.
Jyoti CNC’s ₹1,000-crore public offer was subscribed 38.5 times at close. The strong response was led by qualified institutional buyers (QIBs) at 44.13 times, followed by retail at 26.1 times and high net-worth individuals at 36.4 times.
The price band was fixed at ₹315-331 per share. The public offer consisted entirely a fresh issue of 3.02 crore shares and no offer for sale (OFS) component.
The company will use the net proceeds for repayment of some of its loans, for funding long-term working capital requirements and general corporate purposes.
The company has an impressive client base from the defence sector and this includes Space Application Centre (ISRO), BrahMos Aerospace, Turkish Aerospace, Tata Advances System, Tata Sikorsky Aerospace, Bharat Forge, Shree-ram Aerospace and Defence, Harsha Engineers, Bosch Ltd etc.
In the last three years, Jyoti CNC has supplied more than 7,200 machines to over 3,000 customers across the globe. It has delivered a total of 30,000 plus CNC machines since 2004. For global distribution, Jyoti CNC Auto-mation Ltd leverages the established dealer network of Huron, which as sales and service centers across Romania, France, Poland, Belgium, Italy, and UK.
With Equirus leading on all fronts, Jyoti CNC IPO oversubscribed
Equirus, a leading investment banking and financial advisory firm is pleased to announce its role as the left-lead book-running lead manager to Jyoti CNC Automation Limited in its Rs 1,000 Crore Initial Public Offering (IPO). This IPO witnessed exceptional demand from investors across various categories with the institutional portion being oversubscribed by approximately 44 times, while the non-institutional investor (NII) portion saw a remarkable oversubscription of around 38 times. Additionally, the retail and employee portions experienced strong demand, with subscription rates of approximately 27 times and 13 times, respectively.
Equirus secured an impressive ~66% of the Anchor Book, further underscoring the confidence and trust placed in the offering by institutional investors. This transaction also stands out on several other fronts, being the largest Left-Lead IPO done by Equirus wherein the firm will manage both the role of left lead banker and the post-issue coordination, highlighting the firm’s comprehensive expertise in guiding companies through the entire IPO process. Equirus worked closely with the company on transaction structuring, positioning, documentation, and valuations to ensure that the company was able to launch the IPO in the 2nd week of January something that has been rarely seen in the Indian capital markets.
Munish Aggarwal, Equirus Managing Director & Head – Equity Capital Markets, stated: “We are thrilled to have played a pivotal role in Jyoti CNC Automation Limited’s successful IPO. The response to the IPO highlights the strong conviction investors have in India manufacturing story and the capabilities Jyoti CNC has created to become a partner of choice for a diverse set of customers. Further, the IPO further reinforces Equirus’ strong credentials in the Industrials sector as well as ECM becoming one of the leading ECM houses in the country. We look forward to supporting Jyoti CNC Automation Limited in its journey as a publicly traded company.”
