Jyoti CNC Automation IPO Commences Tomorrow: Groundbreaking GMP Indicators Anticipated During Subscription Period.

Scheduled to conclude on January 11, the IPO is exclusively an offer for sale valued at ₹1,000 crore. Jyoti CNC Automation stands as a global leader in the production of metal-cutting CNC machines, securing the third-largest market share in India, contributing to around 10% of the market share in FY23.

Before the IPO officially kicks off, Jyoti CNC Automation's shares are enjoying a strong premium of ₹85 in the unofficial market. The grey market, a place where shares trade before allotment and up to the listing day, is closely monitored by many investors to gauge the potential listing price.

The Jyoti CNC Automation IPO is set to close on January 11, offering ₹1,000 crore worth of shares exclusively through an offer for sale. Investors can bid for a minimum of 45 shares in one lot, with 75% of the public offer reserved for qualified institutional buyers, 15% for high net-worth individuals, and the remaining 10% for retail investors.

Additionally, ₹5 crore worth of shares are reserved for employees, available at a discounted price of ₹15 each compared to the final issue price. The funds raised will be utilized for loan repayment, long-term working capital needs, and general corporate purposes.

Jyoti CNC Automation, a leading global manufacturer of metal-cutting CNC machines, holds the third-largest market share in India, making up approximately 10% in FY23. The company is vertically integrated and counts major customers like ISRO, BrahMos Aerospace, and MBDA.

In terms of financials, the company turned profitable in FY23, reporting a net profit of ₹15.06 crore, a significant improvement from the previous year's loss of ₹48.3 crore. The positive result was attributed to increased revenue, operating margin, other income, and exceptional income.

For FY23, Jyoti CNC's revenues surged by 24% to ₹929 crore. In the first six months of FY24, the company reported a net profit of ₹3.35 crore on a revenue of ₹509.8 crore. As of June 30, 2023, the company's order book stands at ₹3,143 crore.

Equirus Capital, ICICI Securities, and SBI Capital Markets are the book-running lead managers for the issue. The equity shares are scheduled to be listed on BSE and NSE on January 16, marking the first public issue and listing of the new year in 2024.