Ahead of IPO, JNK India mobilises Rs 195 crore from anchor investors

Heating equipment maker JNK India Ltd on Monday said it has garnered Rs 195 crore from anchor investors a day before its initial share-sale opening for public subscription.

The company has allotted 46.95 lakh equity share to 19 funds at Rs 415 apiece, which is also the upper end of the price band, according to a circular uploaded on the BSE website.

Goldman Sachs, Kotak Mahindra Mutual Fund (MF), HDFC MF, LIC MF, DSP MF, Bajaj Allianz Life Insurance Company, and Aditya Birla Sun Life Insurance Company are among the anchor investors.

The IPO is a combination of fresh issue of equity shares worth up to Rs 300 crore and an offer for sale (OFS) of up to 84.21 lakh equity shares by promoters and an existing shareholder.

Those offloading shares in the OFS are promoters Goutam Rampelli, Dipak Kacharulal Bharuka, JNK Heaters Co Ltd, and Mascot Capital and Marketing Pvt Ltd, and a shareholder Milind Joshi.

The issue, with a price band of Rs 395-415 apiece, will be open for public subscription on April 23 and conclude on April 25. At the upper end of the price band, the IPO price has been pegged at Rs 650 crore.

Proceeds from the fresh issue will be used for funding working capital requirements and general corporate purposes.

JNK India is engaged in the business of thermal designing, engineering, manufacturing, supplying, installing, and commissioning heating equipment and caters to both domestic and overseas markets.

The heating equipment is required in industries such as oil and gas refineries, petrochemicals, fertilisers, hydrogen, and methanol plants, etc.
As on December 31, 2023, the company had an order book of Rs 845 crore.

The company's consolidated revenue from operations surged 37.42 per cent to Rs 407.30 crore for FY23, from Rs 296.40 crore a year ago and net profit increased 29 per cent to Rs 46.36 crore in 2022-23 as compared to Rs 35.98 crore.

IIFL Securities and ICICI Securities are the book-running lead managers of the public issue. The equity shares are proposed to be listed on the BSE and the NSE.