Jnk India Limited is coming up with an IPO worth INR 649.47 crores, consisting of a fresh issue of shares worth INR 300 crores and an offer to sell 0.84 crore shares. The company will utilize the raised funds to meet its working capital requirements.
Jnk India IPO – Important Dates
| Jnk India Limited IPO Date | April 23, 2024 to April 25, 2024 |
| Jnk India Limited IPO Listing Date | April 30, 2024 |
| Jnk India Limited IPO Price | INR 395 to 415 per share |
| Jnk India Limited IPO Lot Size | 36 Shares |
| Jnk India Limited IPO Total Issue Size | INR 649.47 Cr |
| Jnk India Limited IPO Basis of Allotment | April 26, 2024 |
| Jnk India Limited IPO Initiation of Refunds | April 29, 2024 |
| Jnk India Limited IPO Credit of Shares to Demat | April 29, 2024 |
| Jnk India Limited IPO Issue Type | Book Built Issue IPO |
| Jnk India Limited IPO Listing At | BSE, NSE |
Jnk India IPO – Company Profile
Jnk India specializes in manufacturing process-fired heaters, reformers, and cracking furnaces for industries like oil and gas refineries, petrochemicals, and fertilizers. Focusing on thermal design and engineering, they also venture into renewable sectors like green hydrogen production.
A process-fired heater is an industrial heater used to heat fluids or gases directly by burning a fuel source such as natural gas or propane. Reformers are devices used to convert hydrocarbons, such as natural gas or naphtha, into synthesis gas or syngas, which is a mixture of hydrogen and carbon monoxide. Further, cracking furnaces break down large hydrocarbon molecules into smaller ones, which can be used to produce various products, including fuels, chemicals, and plastics. The process of breaking down hydrocarbons is known as cracking, and it typically involves heating the hydrocarbon feedstock in the presence of a catalyst. The process-fired heaters, reformers, and cracking furnaces (together, the “Heating Equipment”) are required in processes such as oil and gas refineries, petrochemicals, fertilizers, hydrogen and methanol plants, etc.
It excels in project completion, earning accolades for safety and efficiency. With a collaborative approach and customized solutions, it serves significant oil refining companies nationally and executes projects globally for JNK Global. Its footprint spans diverse locations, including India, Nigeria, and Mexico, demonstrating its widespread capabilities and reach.
Since its inception, the company has worked closely with JNK Heaters, a KOSDAQ-listed company. The relationship between the company and JNK Heaters is both independent and collaborative.
Jnk India IPO Review
Jnk India’s financial analysis reveals a mixed performance. Revenue rose annually but dipped in the current 9-month period. While equity increased, profitability declined. Fluctuating financial ratios suggest the need for thorough due diligence before considering the IPO.
- Revenue Trend: The revenue increased from ₹2,963.96 million in March 2022 to ₹4,073.02 million in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 2,533.93 million, falling short of the previous year’s annual benchmark.
- Equity and Liabilities: Both equity and total liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has increased from ₹359.83 million in March 2022 to ₹462.11 million by December 2023. This improvement in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹7.50 in March 2022 to ₹9.49 by December 2023, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has declined from 66.03% to 31.79%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Jnk India IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in Million) | 2,963.96 | 4,073.02 | 2,533.93 |
| Equity (₹ in Million) | 721.80 | 1,221.70 | 1 ,685.61 |
| Expenses (₹ in Million) | 2 ,493.10 | 3 ,488.34 | 1 ,960.72 |
| Profit and Loss After Tax (₹ in Million) | 359.83 | 463.58 | 462.11 |
| RoNW (%) | 66.03% | 47.71% | 31.79 |
| Diluted EPS only (₹) | 7.50 | 9.51 | 9 .49 |
| Total Assets (in million) | 2,683.19 | 3,377.75 | 4 ,533.94 |
| Total Liabilities (in million) | 1,961.39 | 2,156.05 | 2 ,848.33 |
| Debt Equity Ratio | 0.21 times | 0.36 times | 0.34 times |
| Current Ratio | 1.32 times | 1.63 times | – |
| Inventory Turnover Ratio | 8.54 times | 5.63 times | – |
Jnk India IPO Peer Comparison
JNK India Limited demonstrates a competitive EPS of 9.66, while Thermax Limited displays strong performance with an EPS of 112.90. Bharat Heavy Electricals Ltd presents a lower EPS of 186.02, indicating varying profitability among the listed companies.
| Company | Type of Financial | Revenue from operations (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| JNK India Limited | Consolidated | 4,073.02 | 2 | NA | 9.66 | 9.51 | 47.71 | 25.45 |
| Thermax Limited | Consolidated | 80,898.10 | 2 | 112.90 | 39.98 | 39.98 | 12.24 | 343.67 |
| Bharat Heavy Electricals Ltd | Consolidated | 233,649.40 | 2 | 186.02 | 1.37 | 1.37 | 1.79 | 77.05 |
Jnk India Ltd IPO Objective
The main objective of Jnk India Limited is to meet working capital requirements.
- Meeting working capital requirement: The company intends to utilize INR 2,626.90 million from the Net Proceeds to fund its working capital requirements for business operations in Fiscals 2024, 2025, and 2026. The company requires additional funds to commensurate the growth in the business.
- General corporate purpose: The company plans to deploy the balance of the funds towards general corporate purposes, including strategic initiatives, acquisitions, meeting exigencies, strengthening marketing capabilities, business development expenses, and infrastructure expenses.
Jnk India Limited IPO Risks And Challenges
Jnk India Limited’s risk includes reliance on JNK Global for revenue, uncertain future orders, and collaboration agreements. Delays in project execution and potential disassociation with JNK Global could adversely affect financial conditions.
- The company derives significant revenue from Contracting Customers like Tata Projects Limited and JNK Global. However, reliance on JNK Global poses a risk. Failure to secure new projects could adversely impact financial conditions.
- Past order volumes, current Order Book, and growth rate may not predict future orders. Delays in execution risk time and cost overruns adversely impact revenue, cash flows, and financial conditions.
- The company collaborates with JNK Global on projects, particularly in the heating equipment market. A Cooperation Agreement outlines mutual roles, potentially impacting revenue and operations from disassociation or contractual defaults.
Jnk India Limited IPO – Industry & Market Potential
India, the third-largest oil consumer, anticipates doubling demand to 11 million barrels daily by 2045. Growing transportation fuel and petrochemical feedstock needs to drive refinery industry growth. Consumption rose 10% in Fiscal 2023.
Heating equipment orders totaled around ₹22,000 million in Fiscal 2023, with a notable increase reported by suppliers in the last 2-3 years, driven primarily by PSU refinery projects and projected growth until 2030.
India ranks third globally in renewable energy attractiveness, with solar power gaining traction due to government support and improved economics. Installed solar capacity has grown significantly, aiming for 500 GW by 2030.
Jnk India Ltd IPO – Type of Offer
Jnk India Limited includes fresh issue worth INR 300 crores and an offer to sell 0.84 crore shares by the existing shareholders.
1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 300 crores. The company plans to utilize it to fund working capital requirements and general corporate purposes.
2. Offer for sale: Jnk India Limited is offering to sell 0.84 crore existing shares. The following are the details of the existing shareholder who is also the promoter selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in million) |
| Goutam Rampelli | 1,122,807 |
| JNK Global Co. Ltd | 2,432,749 |
| Mascot Capital and Marketing Private Limited | 4,397,661 |
Jnk India Ltd IPO Offer Size
The offer size of Jnk India Limited is INR 649.47 crores, consisting of a fresh issue worth INR 300 crores and an offer to sell 0.84 crore shares. The company will utilize the raised funds to meet its working capital requirements.
Jnk India Ltd IPO Allotment Structure
Jnk India Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Jnk India Limited IPO?
To apply for the Jnk India Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Jnk India Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Jnk India Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Jnk India Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Jnk India Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Jnk India Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Jnk India Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Jnk India Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Jnk India Limited Ltd IPO Offer Registrar
The registrar for the Jnk India Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai 400 083
Maharashtra, India
Tel: +91 810 811 4949
E-mail: [email protected]
Website: www.linkintime.co.in
Jnk India Limited Limited IPO – FAQs
1. What is the allotment date of Jnk India Limited?
The allotment date of the Jnk India Limited IPO is April 26, 2024.
2. What is the price band of the Jnk India Limited IPO?
The price band of the issue is INR 395 to 415 per share.
3. What is the size of the Jnk India Limited IPO?
The offer size of Jnk India Limited is INR 649.47 crores, consisting of a fresh issue worth INR 300 crores and an offer to sell 0.84 crore shares. The company will utilize the raised funds to meet its working capital requirements.
4. What is the listing date of the Jnk India Limited IPO?
The listing date of Jnk India Limited’s IPO is April 30, 2024.
