Jyoti CNC Automation IPO: The subscription for the initial public offer (IPO) of Jyoti CNC Automation has opened today. The IPO, with a closing date of January 11, exclusively comprises a fresh issue amounting to Rs 1,000 crore. Prior to the launch of the issue, the company secured Rs 448 crore from anchor investors, which included participation from entities such as Nomura and Goldman Sachs.
According to an ET report, the funds raised will be utilised for repaying a portion of the company’s loans, supporting long-term working capital needs, and serving general corporate purposes.
Jyoti CNC Automation holds a prominent position globally as a manufacturer of computer numerical control (CNC) machines for metal cutting. It ranks third in the Indian market, with around 10% of the market share in FY23.
Drawing on over two decades of expertise and possessing strong research and development capabilities, Jyoti CNC Automation provides tailored solutions to various industries, including aerospace and defence, automotive and auto components, general engineering, electronic manufacturing services (EMS), dies and moulds, and others.
The CNC machine market is anticipated to achieve a Compound Annual Growth Rate (CAGR) of 10% during the period from CY23 to CY27. This expansion is forecasted to be driven by the growth in manufacturing industries, influenced by factors like industrial automation and the incorporation of computer-aided manufacturing.
Jyoti CNC Automation IPO review
Analysts recommend investors to consider subscribing to the offering based on the company’s robust order book, diverse customer base, and product portfolio.
Enhanced market share, increasing industry demand, diversified presence, regular capacity expansions, and a strengthened financial risk profile achieved through targeted debt repayment contribute to a promising outlook for the company’s robust order book. Therefore, Reliance Securities recommends a ‘Subscribe’ rating for long-term investors.
Mehta Equities believes that the Jyoti CNC Automation IPO provides investors with a chance to invest in a globally renowned manufacturer in the metal cutting CNC machine industry, boasting an impressive track record.
Jyoti CNC Automation IPO price band
The Jyoti CNC Automation IPO is priced in the range of Rs 315-331. At the higher end of this range, the company holds a valuation at a P/E of 374.22x and EV/EBITDA of 85.59x, resulting in a market capitalization of Rs 7,527 crore post the issue.
In the public offering, approximately 75% of the shares are allocated for qualified institutional buyers, 10% for retail investors, and the remaining 15% for non-institutional investors.
Jyoti CNC IPO financials
The company achieved a Compound Annual Growth Rate (CAGR) of 27% in revenue and 75% in EBITDA over the period from FY21 to FY23. Transitioning from a net loss of Rs 70 crore in FY21, it recorded a profit of Rs 15 crore in FY23.
During FY23, the company experienced a 24% increase in revenues, reaching Rs 929 crore. Profits for the same period amounted to Rs 15 crore, a significant improvement compared to the loss of Rs 48 crore in the previous year. In the first six months ending in September 2023, revenues totaled Rs 509 crore, with a profit of Rs 3.3 crore.
Equirus Capital, ICICI Securities, and SBI Capital Markets serve as the book running lead managers (BRLMs) for the issue. The company’s equity shares are set to be listed on both the BSE and NSE.
According to an ET report, the funds raised will be utilised for repaying a portion of the company’s loans, supporting long-term working capital needs, and serving general corporate purposes.
Jyoti CNC Automation holds a prominent position globally as a manufacturer of computer numerical control (CNC) machines for metal cutting. It ranks third in the Indian market, with around 10% of the market share in FY23.
Drawing on over two decades of expertise and possessing strong research and development capabilities, Jyoti CNC Automation provides tailored solutions to various industries, including aerospace and defence, automotive and auto components, general engineering, electronic manufacturing services (EMS), dies and moulds, and others.
The CNC machine market is anticipated to achieve a Compound Annual Growth Rate (CAGR) of 10% during the period from CY23 to CY27. This expansion is forecasted to be driven by the growth in manufacturing industries, influenced by factors like industrial automation and the incorporation of computer-aided manufacturing.
Jyoti CNC Automation IPO review
Analysts recommend investors to consider subscribing to the offering based on the company’s robust order book, diverse customer base, and product portfolio.
Enhanced market share, increasing industry demand, diversified presence, regular capacity expansions, and a strengthened financial risk profile achieved through targeted debt repayment contribute to a promising outlook for the company’s robust order book. Therefore, Reliance Securities recommends a ‘Subscribe’ rating for long-term investors.
Mehta Equities believes that the Jyoti CNC Automation IPO provides investors with a chance to invest in a globally renowned manufacturer in the metal cutting CNC machine industry, boasting an impressive track record.
Jyoti CNC Automation IPO price band
The Jyoti CNC Automation IPO is priced in the range of Rs 315-331. At the higher end of this range, the company holds a valuation at a P/E of 374.22x and EV/EBITDA of 85.59x, resulting in a market capitalization of Rs 7,527 crore post the issue.
In the public offering, approximately 75% of the shares are allocated for qualified institutional buyers, 10% for retail investors, and the remaining 15% for non-institutional investors.
Jyoti CNC IPO financials
The company achieved a Compound Annual Growth Rate (CAGR) of 27% in revenue and 75% in EBITDA over the period from FY21 to FY23. Transitioning from a net loss of Rs 70 crore in FY21, it recorded a profit of Rs 15 crore in FY23.
During FY23, the company experienced a 24% increase in revenues, reaching Rs 929 crore. Profits for the same period amounted to Rs 15 crore, a significant improvement compared to the loss of Rs 48 crore in the previous year. In the first six months ending in September 2023, revenues totaled Rs 509 crore, with a profit of Rs 3.3 crore.
Equirus Capital, ICICI Securities, and SBI Capital Markets serve as the book running lead managers (BRLMs) for the issue. The company’s equity shares are set to be listed on both the BSE and NSE.
