Jyoti CNC Automation IPO; CNC Automation company IPO to begin from January 09; Key Details here

Jyoti CNC Automation is into Engineering CNC Automation and is looking raise funds through Fresh Issue

Jyoti CNC Automation to raise Fresh Issue aggregating up to Rs. 1,000 crores IPO

Jyoti CNC Automation IPO is a public offering of shares by Parakramsinh Ghanshyamsinh Jadeja, Sahdevsinh Lalubha Jadeja, Vikramsinh RaghuvirsinhRana, and Jyoti International LLP. The IPO will open on January 09 and will close on January 11. The price band is ₹315 to ₹331 per share and the lot size is 45 shares. The issue size is ₹1,000. crore. The shares are expected to be listed on NSE, BSE on January 16 (^). Some additional information that you may find useful are: Company is having three Manufacturing plants of which two plants are located in Rajkot (India) and One plant in France with annual capacity of 4,400machines p.a. in India and 121 machines in France. Orderbook of Rs3315 crs as on Sep'23. Share of orderbook from Aerospace and Defense / Auto / Engineering / Dies and Moulds / EMS / Others at 57.2% / 12.2% / 11.9% / 4.7% / 9.2% / 4.8%.: (**) - based on higher price band (^) indicative date

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Key Pointers of Jyoti CNC Automation IPO:

Promoters of the company are Parakramsinh Ghanshyamsinh Jadeja, Sahdevsinh Lalubha Jadeja, Vikramsinh RaghuvirsinhRana, and Jyoti International LLP Currently promoters hold 71.94% stake in the company. While post-equity promoters stake will be 62.55%

• Company aims to raise between Rs 1,000 to 1,000 crs through this IPO.
• The net proceeds of the issue will be utilized to 1) Repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company amounting to Rs. 475 cr. 2) Funding long-term working capital requirements amounting to Rs. 360 cr. and 3) General corporate purposes
• Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 08-Jan-24.
• Price band for the IPO has been fixed at Rs 315 to 331 per share and bid lot are in multiple of 45 shares. The implied market cap post-issue at Rs 7,212 to 7,527 crs.
• As per the tentative schedule, allotment date of this IPO is most likely on January 12 and share are expected to be listed on NSE, BSE on January 16.
• Company has direct competition in the Automation market. It is competing with listed players including Elgi Equipments, Lakshmi Machine Works, Triveni Turbine and TD Power Systems amongst others.
• Equirus Capital, ICICI Securities, SBI Capital Markets has been appointed as Merchant Banker to the issue. Link Intime India Pvt. Ltd. has been appointed as official registrar of the issue.

About Jyoti CNC Automation Limited

Jyoti CNC Automation Limited

Rajkot based Jyoti CNC Automation is into manufacturing of metal cutting computer numerical control (CNC) machines. Its market share in India is second largest with 8% market share in FY22 and Globally it has twelfth largest market share. It is manufacturer of simultaneous 5-Axis CNC machines in India and are a supplier of one of themost diverse portfolios of CNC machines in India (Source: F&S Report). Company offers over 200 variants across 44 series. Since April 1, 2004, it supplied over 30,000 CNC machines globally.

Company is having three Manufacturing plants of which two plants are located in Rajkot (India) and One plant in France with annual capacity of 4,400machines p.a. in India and 121 machines in France. Orderbook of Rs3315 crs as on Sep'23. Share of orderbook from Aerospace and Defense / Auto / Engineering / Dies and Moulds / EMS / Others at 57.2% / 12.2% / 11.9% / 4.7% / 9.2% / 4.8%.

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About Industry

The global CNC machining Centers market is estimated to be ~$51.5billion in 2027.This market is majorly driven by global automotive and heavy industries manufacturers, who are embracing automation and advanced software solutions to meet their customers' needs. In addition, shortage of skilled labor, working hour limits, and labor costs are on the rise. Thus, there is a rapid growth in the demand for automated precision machines. Global CNC Machining Centers Market is expected to grow at CAGR of 9.9% from 2023-2027. (Source: F&S Report)

Source: SEBI, BSE, NSE, DRHP, IPO Status, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.