Interested in new sectors and companies that integrate technology and innovations? Then, you must be aware that Jyoti CNC Automation Limited has announced the launch date of its Rs. 1000 crore IPO.
It’s going to be the maiden public issue for the second-largest manufacturer of CNC machines in India. The company, headquartered in Gujarat, has claimed to have supplied CNC machines to ISRO, Tata Advanced Systems, BrahMos Aerospace Thiruvananthapuram, Shreeram Aerospace & Defence LLP and many more since 2004.
In its recent update, Jyoti CNC Automation Limited announced its IPO opening date on Tuesday, January 9, 2023. The allotment of this company’s IPO will be finalised on January 12, 2024.
We have provided some of the crucial details related to Jyoti CNC Automation Limited’s IPO in this blog. Give it a read to make an informed decision.
Table of Content
Jyoti CNC Automation IPO Details
The table below displays some of the crucial details about the upcoming Jyoti CNC Automation IPO:
| IPO Open Date | January 9, 2024 |
| IPO Close Date | January 11, 2024 |
| Listing Date | January 16, 2024 |
| Face Value | Rs. 2 per share |
| Price Band | Rs. 315 to Rs. 331 |
| Lot Size | 45 shares |
| Total Issue Size | Shares worth Rs. 1,000 crore |
| Fresh Issue | Shares worth Rs. 1,000 crore |
| Issue Type | Book built issue IPO |
| Listed on | NSE and BSE |
Also Read: How does an IPO work?
About the Company
Jyoti CNC Automation Limited is among one of the leading manufacturers of CNC machines both internationally and nationally. In fiscal year 2022, the company was India’s second-largest CNC machine manufacturer and occupied around 8% of the total market share.
The company aims to integrate technology and innovation and customise products for its customers. Moreover, it is highly dedicated to innovation which acts as a motivator for coming up with a diverse portfolio of customised solutions and products.
Jyoti CNC Automation Limited is an important manufacturer of 5-axis CNC machines in India. Some of the other products it manufactures include CNC Turn Mill Centers, CNC Turning Centers, CNC Vertical Machining Centers, and CNC Horizontal Machining Centers.
The company boasts of customers across a wide range of sectors including defence and aerospace, general engineering, auto and auto components, dies and moulds, EMS, and more. Jyoti CNC Automation Limited has a subsidiary called Huron Graffenstaden S.A.S.which is nothing short of a pioneer when it comes to 5-Axis machining technology.
IPO Tentative Timeline
Here are the tentative dates of the upcoming Jyoti CNC Automation Limited IPO. Check it to plan your investment strategy.
| IPO Open Date | January 9, 2024, Tuesday |
| IPO Close Date | January 11, 2024, Thursday |
| Cut-off Time for UPI Mandate Confirmation | January 11, 2024, Thursday, 5 p.m. |
| Basis of Allotment | January 12, 2024. Friday |
| Initiation of Refunds | January 15, 2024, Monday |
| Credit to Demat | January 15, 2024, Monday |
| Listing Date | January 16, 2024, Tuesday |
IPO Lot Size
Investors can bid for a minimum of 45 shares and in multiples of this quantity. The below table shows the minimum and maximum investment allowed for retail investors and High Net Worth Individuals (HNIs) in both shares and corresponding amounts.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 45 | Rs. 14,895 |
| Retail (Max) | 13 | 585 | Rs. 193,635 |
| S-HNI (Min) | 14 | 630 | Rs. 208,530 |
| S-HNI (Max) | 67 | 3,015 | Rs. 997,965 |
| B-HNI (Min) | 68 | 3,060 | Rs. 1,012,860 |
Company Financials
Take a look at the table below for detailed knowledge about Jyoti CNC Automation Limited’s previous years’ financial statements.
| Particulars | For the Financial Year Ending (in Rupees million*) | ||
| 31 March 2023 | 31 March 2022 | 31 March 2021 | |
| Total Assets | 15,153.81 | 12,826.35 | 13,881.92 |
| Total Current Liabilities | 12,728.64 | 10,718.71 | 11,121.60 |
| Total Income | 9,526.00 | 7,500.61 | 5,900.92 |
| Total Expense | 9,552.01 | 7,918.11 | 6,616.65 |
| Profit After Tax | 150.60 | – 48.30 | -70.03 |
| EBITDA | 973.79 | 726.62 | 316.89 |
Also Read: Benefits of Investing in IPO
Strengths
Before you decide to invest in the IPO of Jyoti CNC Automation Limited, you should evaluate the strengths of the company minutely. It will help you get a proper understanding of the company’s future. Here are the notable strengths:
- Jyoti CNC Automation Limited provides its customers with a one-stop solution for all their needs.
- The company has an extensive presence all across the CNC metal-cutting machinery value chain.
- The company boasts of a vertically integrated operation which is of international standards.
- Jyoti CNC Automation Limited is highly focused on technology and strives to deliver innovative solutions to its customers.
- The company enjoys a long-standing relationship with its customers. It also boasts a diversified customer base.
- Acquiring Huron has given Jyoti CNC Automation Limited a strategic advantage over its competitors.
- The management and technical teams of the company are skilled and experienced. Moreover, they have a high level of commitment to the growth of Jyoti CNC Automation Limited.
Additional Read: IPO Success Stories
Risks Involved
You should always take into account the risks involved with a company before putting your money in its IPO. The following are some risks of investing in Jyoti CNC Automation:
- The company, its subsidiaries, and its directors are involved in several legal proceedings.
- Demand for the products sold by Jyoti CNC Automation Limited depends greatly on the demand and spending of capital by customers in aerospace, auto, auto ancillary, general engineering, and government entities. If these sectors are affected by downturns, there will be a substantial decrease in the demand for Jyoti CNC Automation Limited’s products and services.
- If the costs of raw materials increase or there’s a disruption in their procurement or availability, the company’s bottom line will suffer greatly.
Conclusion
With Jyoti CNC Automation Limited having announced its IPO launch details, you know when you need to check in if you are interested. It is going to be the first IPO to launch in 2024.
Before investing ensure to check the Red Herring Prospectus, which will contain the most up-to-date information. While checking the strengths of the company is essential, don’t forget to take into account the risks as well. It will help you weigh the pros and cons before making a decision.
FAQs
Equirus Capital Private Limited, ICICI Securities Limited and SBI Capital Markets Limited are the three Book Running Lead Managers (BRLM) of Jyoti CNC Automation Limited’s IPO.
The face value is Rs. 2 for each share of the Jyoti CNC Automation Limited IPO.
Sahdevsinh Jadeja, Parakramsinh Jadeja, Jyoti International LLP and Vikramsinh Rana are the promoters of Jyoti CNC Automation Ltd.
Jyoti CNC Automation Limited IPO will open on January 9, 2024 and close on January 11, 2024.
Jyoti CNC Automation Ltd price band has been fixed in the range of Rs. 315 to Rs. 331.
