Jyoti CNC Automation IPO is a book-built issue of Rs 1,000.00 crores. The issue consists of entirely fresh issue of 3.02 crore shares.
Jyoti CNC Automation IPO opens for subscription on January 9, 2024 and closes on January 11, 2024. The allotment for the Jyoti CNC Automation IPO is expected to be finalized on Friday, January 12, 2024. Jyoti CNC Automation IPO will list on BSE and NSE with a tentative listing date fixed as Tuesday, January 16, 2024.
The price band for Jyoti CNC Automation IPO is set at ₹315 to ₹331 per share. The minimum lot size for an application is 45 shares. The minimum amount of investment required by retail investors is ₹14,895. The minimum lot size investment for SNII is 14 lots (630 shares), amounting to ₹208,530, and for BNII, it is 68 lots (3,060 shares), amounting to ₹1,012,860.
OBJECTIVE
- Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the company;
- Funding long-term working capital requirements of the company; and
- General corporate purposes.
POSITIVE
- The company is one of the leading CNC machine manufacturing companies globally and in India.
- It has a well-diversified global customer base spread across various industries.
- Strong R&D focus and tech ability to deliver innovative solutions.
- The company has vertically integrated operations which helps it to increase efficiencies and offer customisation.
- Experienced promoters and management team.
NEGATIVE
- The company has reported losses in the past.
- It has significant indebtedness and carries debt servicing obligations.
- It has substantial working capital requirements and working capital expenditure.
- Operates in a highly competitive market.
- The company does not have repeat orders from its Customers on an annual or bi-annual basis.
- It operates in the capital goods industry which is sensitive to general economic downturns.
- Faces foreign exchange risks.
Jyoti CNC Automation IPO Timeline
| IPO Date | January 9, 2024 to January 11, 2024 |
| Listing Date | [.] |
| Face Value | ₹2 per share |
| Price Band | ₹315 to ₹331 per share |
| Lot Size | 45 Shares |
| Total Issue Size | 30,211,480 shares (aggregating up to ₹1,000.00 Cr) |
| Fresh Issue | 30,211,480 shares (aggregating up to ₹1,000.00 Cr) |
| Employee Discount | Rs 15 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 197,204,447 |
| Share holding post issue | 227,415,927 |
Jyoti CNC Automation IPO Details
| IPO Open Date | Tuesday, January 9, 2024 |
|---|---|
| IPO Close Date | Thursday, January 11, 2024 |
| Basis Of Allotment Date | Friday, January 12, 2024 |
| Initiation Of Refunds | Monday, January 15, 2024 |
| Credit Of Shares To Demat ACcount | Monday, January 15, 2024 |
| IPO Listing Date | Tuesday, January 16, 2024 |
So, how does Jyoti CNC IPO Fare in Terms of Financials?
Financial Details
The financial highlights of IPO are summarised in this table below –
| YearRevenueExpensePAT2021₹590.09₹661.66₹70.022022₹750.06₹791.81₹48.302023₹952.60₹955.20₹15.062024 6M₹510.53₹500.21₹3.35 |
Note:In Cr.
FINANCIAL REVIEW
Jyoti CNC Automation has demonstrated revenue growth and recent profitability, but concerns remain about its high valuation, debt burden, and ability to sustain profitability consistently. Investors should carefully evaluate these factors and conduct thorough due diligence before making investment decisions.
Jyoti CNC Automation IPO VALUATIONS
| Earning Per Share (EPS): | ₹1.02 per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 18.35% |
| Net Asset Value (NAV): | ₹5.57 per Equity Share |
Jyoti CNC IPO – SWOT ANALYSIS
Strengths
- Market Leader: Jyoti CNC is the second largest CNC machine manufacturer in India and holds a 12% global market share. This established position provides brand recognition and customer loyalty.
- Diversified Product Portfolio: The company offers a wide range of CNC machines, including 5-axis machines, catering to various industry needs. This diversification reduces dependence on any specific market segment.
- Strong Order Book: Jyoti CNC currently boasts a robust order book of over Rs. 3300 crores, indicating healthy demand for its products.
- Financial Performance: Despite recent setbacks, the company has displayed positive growth in revenue and profitability in FY23, suggesting potential for further financial improvement.
- Experienced Management: The company is led by a team of experienced professionals with expertise in the CNC machine industry, promoting investor confidence.
Weaknesses
- High Valuation: The IPO is priced at a P/E of 501 based on FY23 earnings and 1103 based on annualized FY24 earnings, considered expensive compared to peers. This might deter some investors.
- Dependence on Debt: Jyoti CNC has a significant debt burden, which could impact its financial flexibility and profitability in the future.
- Macroeconomic Risks: The company’s performance is tied to the overall health of the manufacturing sector, which is vulnerable to economic downturns and global trade disruptions.
- Limited Track Record of Profitability: The company has only recently turned profitable, raising concerns about its ability to sustain profitability in the long run.
Opportunities
- Growing Indian CNC Machine Market: The Indian CNC machine market is expected to grow at a CAGR of 12% over the next few years, driven by increasing automation adoption in various industries. This presents a significant growth opportunity for Jyoti CNC.
- Focus on Exports: Jyoti CNC is aiming to increase its export focus, potentially expanding its market reach and reducing dependence on the domestic market.
- Technological Advancements: The company is investing in R&D to develop new and advanced CNC machines, which could further strengthen its competitive advantage.
Threats
- Intense Competition: The CNC machine market is highly competitive, with established players and new entrants vying for market share. This could put pressure on Jyoti CNC’s margins and profitability.
- Rising Raw Material Costs: Fluctuations in the prices of raw materials like steel and aluminum can impact Jyoti CNC’s profitability.
- Technological Disruption: Rapid advancements in machine learning and automation could disrupt the CNC machine market, posing a challenge to Jyoti CNC’s existing business model.
COMPETITIVE ANALYSIS: MARKET PEERS
Here are some of the key market peers of Jyoti CNC Automation:
- Elgi Equipments Limited: A leading manufacturer of air compressors and other industrial equipment, Elgi Equipments also has a growing CNC machine division. Elgi has a strong presence in the southern Indian market.
- Lakshmi Machine Works Limited (LMW): A well-established player in the Indian machine tool industry, LMW offers a wide range of CNC machines, including turning centers, machining centers, and milling machines. LMW has a strong brand reputation and a nationwide presence.
- Triveni Turbine Limited: Primarily a manufacturer of steam turbines, Triveni Turbine also has a CNC machine division that caters to the power and infrastructure sectors. Triveni has a niche expertise in high-precision CNC machines
- TD Power Systems Limited: A manufacturer of diesel and gas generators, TD Power Systems also has a CNC machine division that caters to the power and oil & gas sectors. TD Power has a strong presence in the western Indian market.
- Macpower CNC Machines Ltd: A smaller player in the CNC machine market, Macpower focuses on affordable and entry-level machines. Macpower has a growing presence in the northern Indian market.
Jyoti CNC Automation IPO GMP
- Grey market premium as on DD-MM-YYYY= Rs /Share
- Grey market premium as on DD-MM-YYYY = Rs /Share
- Grey market premium as on DD-MM-YYYY= Rs /Share
- Grey market premium as on DD-MM-YYYY = Rs /Share
Disclaimer:
- IPO Grey Market Premium (Jyoti CNC IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.
Jyoti CNC IPO Live Subscription Status
09/01/2023 10:00 AM
FINAL TAKEAWAY
- May Apply
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