The Initial Public Offer (IPO) of Jyoti CNC Automation was subscribed 3.92 times on the second day of bidding on Wednesday (January 10). The IPO received bids for 6,87,09,015 shares against 1,75,39,681 shares on offer, as per NSE data. The public issue, with a price band of Rs 315-331 per share, will conclude today.

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Jyoti CNC Automation, a manufacturer of CNC machines with the third largest market share in India accounting for approximately 10 per cent of the market share in India in Fiscal 2023 and the twelfth largest market share globally accounting for 0.4 per cent of the market share in the calendar year 2022, comprised of fresh issuance of equity shares worth up to Rs 1,000 crore. 

Here are some of the key details about the upcoming Jyoti CNC Automation IPO: 

Jyoti CNC Automation IPO: Important dates 

The subscription window for the IPO will be available from 10 am to 5 pm for three trading days, till January 11. 

The basis of the allotment of shares is likely to be finalized on Friday, January 12.  

Jyoti CNC Automation shares will be listed on stock exchanges NSE and BSE tentatively on Tuesday, January 16. 

Jyoti CNC Automation Ltd IPO: Price band 

The company has fixed a price band of Rs 315-331 per share for the issue, translating into Rs 14,175-14,895 per lot.

Jyoti CNC Automation IPO: Lot size 

Investors can bid for Jyoti CNC Automation shares, under the IPO, in multiples of 45 equity shares. 

Jyoti CNC Automation IPO: Allotment 

After the completion of the bidding process, subscribers will be able to check the allotment status on the website of the registrar, Link Intime India. Here's the direct link: https://linkintime.co.in/mipo/ipoallotment.html. 

Jyoti CNC Automation IPO: Fund utilisation  

The company plans to utilise the proceeds from the issue towards debt payment, long-term working capital requirements and general corporate purposes. 

Jyoti CNC Automation IPO: Book-running lead managers 

Equirus Capital, ICICI Securities, and SBI Capital Markets are the book-running lead managers to the issue.  

What does Jyoti CNC Automation do? 

Jyoti CNC Automation is a manufacturer of computer numerical control (CNC) machines.  

Its customers include ISRO, BrahMos Aerospace Thiruvananthapuram, Turkish Aerospace, MBDA, Uniparts India, Tata Advanced System, Tata Sikorsky Aerospace, Bharat Forge, Kalyani Technoforge and Bosch.  

As of September 2023, the company had an order book of Rs 3,315.33 crore.  

Anil Singhvi's view on Jyoti CNC Automation IPO: 

Zee Business Managing Editor Anil Singhvi recommended only high-risk investors to apply for Jyoti CNC Automation IPO while listing the following pros and cons: 

Pros:

-Experienced promoters

-Third largest market share in India

-Huge order book of Rs 3,300 crore

-Plan to reduce debt substantially

-Strong growth outlook

Cons:

-Loss making company in last three years.

-Higher debt compared with peers.

-Weak financials due to poor performance of the French subsidiary.

-No immediate plan to increase capacity.

He further said the valuations are reasonable.

(With inputs from agencies.)

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