In this article we are going to discuss Full Details about Jyoti CNC Automation Ltd IPO. We will explore the company’s financial metrics, past performance, and conduct an analysis for potential future growth. We will give our opinion whether you should apply for the IPO or not.
Table of Contents
Jyoti CNC Automation IPO Details
Key Details of IPO
- Issue Size: 💰 ₹1,000.00 Crores (Entirely a fresh issue of 3.02 crore shares)
- Type Of IPO: Book Built
- Type: 📚 Fixed price issue
- Subscription Period: 🗓️ January 9, 2024, to January 11, 2024
- Allotment Date: 📅 Expected on Friday, January 12, 2024
- Listing Date: 📈 Tentatively on BSE, NSE on Tuesday, January 16, 2024
- Price Band: 💹 ₹315 to ₹331 per share
- Minimum Lot Size: 📊 45 shares
- Retail Investor Minimum Investment: 💵 ₹14,895
- sNII Minimum Lot Size Investment: 🤝 14 lots (630 shares), amounting to ₹208,530
- bNII Minimum Lot Size Investment: 🤝 68 lots (3,060 shares), amounting to ₹1,012,860
| IPO Date | 9-Jan-2024 to 11-Jan-2024 |
| Issue Size | ₹1,000.00 Crores (Entirely a fresh issue of 3.02 crore shares) |
| Lot Size | 45 shares |
| Price Range | ₹315 to ₹331 per share |
| Face Value | ₹10 per share |
| Issue Type | 100% book building |
| Cut-off time for UPI Mandate Confirmation | 11 Jan 2024 (upto 5:00 PM) The new cut-off time for UPI mandate acceptance is 05:00 PM on last day of IPO bidding. |
Lots Size
| Application | Lots | Shares | Price |
|---|---|---|---|
| Retail(min) | 1 | 45 | ₹14,895 |
| Retail (max) | 13 | 585 | ₹193,635 |
| s-HNI (min) | 14 | 630 | ₹208,530 |
| s-HNI (max) | 67 | 3,015 | ₹997,965 |
| B-HNI (min) | 68 | 3,060 | ₹1,012,860 |
Important Dates
| IPO opening date | (10:00 AM) Tuesday, January 09, 2024 |
| IPO closing date | (05:00 PM) Thursday, January 11, 2024 |
| Basis of allotment | Friday, January 12, 2024 |
| Initiation of Refunds | Monday, January 15, 2024 |
| Credit of Shares to Demat | Monday, January 15, 2024 |
| Listing Date | Tuesday, January 16, 2024 |
Financial Metrics
Assets, Revenue and Profit Statement
| Period | Total Assets | Total Revenue | Profit After Tax |
|---|---|---|---|
| 31 Sep 23(half year) | 1,706.07 | 510.53 | 3.35 |
| 31 Mar 23 | 1,515.38 | 952.60 | 15.06 |
| 31 Mar 22 | 1,286.24 | 750.06 | -48.30 |
| 31 Mar 21 | 1,388.19 | 590.09 | -70.03 |
Key Performance Indicators (KPIs)
| KPIs | Value |
|---|---|
| Price to Earning (P/E) | 324.5 |
| Return on capital employed(ROCE) | 9.50% |
| Return on Equity (ROE) | 18.35% |
| Earning Per Share (EPS) | 1.02 |
| Debt to Equity | 10.27 |
About Jyoti CNC Automation
Key Details
- 🏭 Incorporation: Founded in January 1991, Jyoti CNC specializes in manufacturing CNC machines in India.
- 🛠️ Products: Diverse range including CNC turning centers, milling machines, and more.
- 🌐 Global Presence: Delivered 7,200+ machines to 3,000+ customers worldwide.
- 🤝 Customer Base: Includes ISRO, Brahmos Aerospace, Tata Group, and others.
- 🌍 Distribution: Products distributed globally through Huron’s network and 29 sales centers in Europe.
- 🏭 Manufacturing: Three facilities in India and France with design and production capabilities.
- 📈 Capacity: Produces 4,400 machines/year in India and 121 machines/year in France.
- 💼 Order Backlog: As of June 2023, ₹31,430.56 million, including a ₹2,602.50 million order from an EMS company.
- 👥 Workforce: Employs 2,573 individuals as of June 2023.
| Chairman & Director | Parakram Jadeja |
| Sector | Engaged in the business of manufacturing CNC machines. |
| Established | January 1991 |
| No of employees | 2573 |
| Customers | Includes ISRO, Brahmos Aerospace, Tata Group, and others. |
Positive and Negative Points
Positive
- High ROE (18.35%): Efficient equity use, showcasing strong management performance.
- Consistent Revenue Growth: ₹1,706.07 in Sep 2023, indicating positive trajectory.
- Strong Operational Presence:
- 🤝 Notable customer base includes ISRO, Brahmos Aerospace, Tata Group.
- 🌍 Global distribution through Huron’s network and 29 sales centers.
Negative
- High P/E (324.5): May indicate overvaluation or high future expectations.
- Low ROCE (9.50%): Capital less efficiently used for profit generation.
- Inconsistent Net Profit Margin: Varied, negative values in March 2021 and 2022.
- Very High Debt to equity ratio (10.27): Very high debt, signaling higher financial risk.
- Very low EPS (₹1.02): Earning per share is very low which indicates the company is not going to perform.
Apply Or Not
No, you should not apply for this IPO. Based on our analysis, the elevated PE suggests the IPO is overvalued. Given the company’s inconsistent profit in recent years, we strongly recommend avoiding this IPO.
Disclaimer
Investing in stock market is risky and subject to the market condition. This article provides an examination of the company for educational purposes only. We are not SEBI( Stock exchange board of India) registered advisors, and this is not an investment advice. We do not provide tips or calls.. Before making any investment decisions, please conduct your own research or consult a qualified financial advisor.
FAQ
What is the starting date of Jyoti CNC Automation IPO?
The Jyoti CNC Automation IPO opens for subscription on January 9, 2024.
When is the subscription period for the Jyoti CNC Automation IPO?
The IPO subscription period is from January 9, 2024, to January 11, 2024.
What is the price band for the Jyoti CNC Automation IPO?
The price band is set at ₹315 to ₹331 per share.
What is the minimum lot size for the Jyoti CNC Automation IPO?
The minimum lot size is 45 shares.
