Unlisted shares of Jyoti CNC Automation Limited continue to trade Rs 77 higher in the grey market, which is 23.26 per cent listing gain from the public issue
Jyoti CNC Automation IPO: The initial public offering of Jyoti CNC Automation Limited, which was opened for public subscription on Tuesday, was fully subscribed within hours of opening for bidding, mainly helped by heavy participation from retail investors. Till 11:03 am on the second day of bidding on Wednesday, the Rs 1,000-crore IPO has received 1.50 times subscription, garnering bids for 2,47,74,075 shares as against 1,65,33,233 shares on offer.
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The offer will remain opened till January 11. The price band of the IPO has been fixed at Rs 315-331 per share.
The IPO allotment will likely take place on January 12, while its share listing will take place on January 16 on both BSE and NSE.
Jyoti CNC Automation IPO GMP Today
According to market observers, unlisted shares of Jyoti CNC Automation Limited continue to trade Rs 77 higher in the grey market as compared with its issue price. The Rs 77 grey market premium or GMP means the grey market is expecting a 23.26 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
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Jyoti CNC Automation IPO Details
The minimum lot size for an application is 45 shares. The minimum amount of investment required by retail investors is Rs 14,895.
Jyoti CNC Automation IPO is a Rs 1,000-crore offer, comprising entirely a fresh issue of 3.02 crore shares.
Equirus Capital Private Limited, ICICI Securities Limited and SBI Capital Markets Limited are the book running lead managers of the Jyoti CNC Automation IPO, while Link Intime India Private Ltd is the registrar for the issue.
Jyoti CNC Automation Limited, which was incorporated in January 1991, is a manufacturer and supplier of CNC machines. The company is based in India and specializes in manufacturing and supplying CNC machines.
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The product range includes CNC turning centres, CNC turning-milling centres, CNC vertical machining centres (VMCs), CNC horizontal machining centres (HMCs), simultaneous 3-axis CNC machining centres, simultaneous 5-axis CNC machining centres and multi-tasking machines.
Jyoti CNC Automation Limited reported a net profit of Rs 15.06 crore with a revenue of Rs 952.60 crore in FY23 against a loss of Rs 29.68 crore in FY22. EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 34 per cent on-year to Rs 97.4 crore with a margin expansion of 74 bps at 10.47 per cent for FY23.
Risks
Some of the major risks are:
1) The company’s dependence on the top 10 customers increased from 20.08 percent in FY23 to 39.92 percent during the 6 months ended September 30, 2023.
2) Its debt-to-equity ratio stood at 10.17x in FY23.
3) As of September 30, 2023, Jyoti CNC had one of the lowest RoE and RoCE in its peer group which includes Elgi Equipments, Lakshmi Machine Works, Triveni Turbine, TD Power Systems and Macpower CNC Machines.
4) The price-to-earnings (P/E) ratio based on diluted EPS (Rs 1.02) for FY23 at the upper end of the price band comes at 324.51 times and at the lower end, it stands at 308.82 times.
