Jyoti CNC Automation Limited is coming up with an IPO to issue Rs. 1,000 crore of fresh shares to the public. The company will utilize the raised funds to repay borrowings, fund long-term working capital, and fulfill general corporate requirements.
Jyoti CNC Automation Ltd IPO – Important Details
| Jyoti CNC Automation IPO Date | January 9, 2024 to January 11, 2024 |
| Jyoti CNC Automation IPO Listing Date | January 16, 2024 |
| Jyoti CNC Automation IPO Price | INR 315 to 331 per share |
| Jyoti CNC Automation IPO Lot Size | 45 Shares |
| Jyoti CNC Automation IPO Total Issue Size | Approx INR 1,000 crore |
| Jyoti CNC Automation IPO Basis of Allotment | January 12, 2024 |
| Jyoti CNC Automation IPO Initiation of Refunds | January 15, 2024 |
| Jyoti CNC Automation IPO Credit of Shares to Demat | January 15, 2024 |
| Jyoti CNC Automation IPO Issue Type | Book Built Issue IPO |
| Jyoti CNC Automation IPO Listing At | BSE, NSE |
Jyoti CNC Automation IPO – Company Profile
Jyoti CNC Automation is a global CNC machine leader, ranking 2nd in India. They have specialized in simultaneous 5-axis CNC machines and offer a diverse portfolio. With over two decades of expertise and strong R&D, they provide tailored solutions to industries worldwide, including aerospace, defense, automotive, and more.
They operate from three manufacturing facilities in India and France, featuring integrated operations such as foundry and assembly lines. This facilitates efficient collaboration among design, development, and production teams, decreasing delivery timelines and ensuring adequate post-sales support.
The company’s growth is driven by continuous operational optimization, exemplified by the ongoing implementation of a cupola furnace to enhance forging capacity cost-effectively. Simultaneously, they’re establishing a dedicated sand processing unit to streamline operations and improve efficiency in their foundry division.
Jyoti CNC Automation IPO – Fundamental Analysis
Jyoti CNC’s IPO portrays consistent revenue growth, shifting profitability, and evolving financial structures, suggesting promise amid considerations for potential investors.
Revenue Growth:
Jyoti CNC has displayed consistent growth in revenue over the past three years, indicating positive momentum and market demand for its products/services.
Equity and Liabilities:
There has been a significant decrease in equity and an increase in liabilities from 2021 to 2022, which might be due to various factors like restructuring, debt, or other financial activities. However, in 2023, both equity and liabilities increased, signaling potential stability in the company’s financial structure.
Expenses:
The expenses have generally increased year-on-year, which is not unusual for a growing company. However, keeping expenses in check relative to revenue is crucial for sustainable growth.
Profitability:
Jyoti CNC has been on a positive trajectory in terms of profitability, moving from losses in 2021 and 2022 to a notable profit in 2023. The improvement in the Profit and Loss After Tax indicates positive operational efficiency and potential growth prospects.
Return on Net Worth (RoNW):
The RoNW has shown a significant positive turnaround from negative percentages to 18.35% in 2023, reflecting improved efficiency in utilizing shareholder funds for generating profits.
Earnings per Share (EPS):
The EPS has shown improvement from negative values to a positive figure in 2023, demonstrating potential profitability per share.
Debt Equity Ratio:
While the debt-equity ratio has decreased from 2022 to 2023, indicating reduced reliance on debt, the figure remains relatively high. A higher ratio indicates higher financial risk due to increased dependency on debt financing.
Asset and Liability Management:
The increase in both total assets and liabilities indicates company expansion and potentially increased investment in resources.
Net Asset Value (NAV):
There is an improvement in the NAV from 2022 to 2023, but it is essential to note that the value is still comparatively low, which may indicate lower inherent value per share.
Ratios:
The current ratio, though slightly increasing, is below 1, indicating potential liquidity challenges. However, the inventory turnover ratio has shown improvement, indicating efficient inventory management.
Gross Profit Margin:
There’s a slight decrease in gross profit margin over the years, which might warrant further investigation into cost management and operational efficiencies.
Jyoti CNC IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 5,800.59 | 7,464.87 | 9,292.59 |
| Equity (₹ in Million) | 1,125.86 | 411.54 | 820.63 |
| Expenses (₹ in Million) | 6,616.65 | 7,918.11 | 9,552.01 |
| Profit and Loss After Tax (₹ in Million) | (700.29) | (483.00) | 150.60 |
| RoNW (%) | (62.20) | (117.37) | 18.35 |
| Diluted EPS only (₹) | (0.48) | (0.33) | 0.10 |
| Total Assets (in million) | 13,881.92 | 12,862.35 | 15,153.81 |
| Total Liabilities (in million) | 12,756.06 | 12,450.81 | 14,333.81 |
| Net Asset Value (NAV) | 7.64 | 2.79 | 5.57 |
| Debt Equity Ratio | 6.44 | 19.25 | 10.17 |
| Current Ratio | 0.89 times | 0.89 times | 0.93 times |
| Inventory Turnover Ratio | 0.78 times | 0.97 times | 1.05 times |
| Gross Profit Margin (%) | 45.01 | 43.78 | 42.68 |
Jyoti CNC IPO Peer Comparison
Jyoti CNC Automation’s revenue stands lower than peers, indicating potential growth space. Its EPS and RoNW are modest compared to Lakshmi Machine Works and Elgi Equipments, which boast higher profitability and stronger NAV. Triveni Turbine and TD Power Systems display moderate performance across metrics.
| Company | Revenue from operations(₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Jyoti CNC Automation Limited | 9,292.59 | 2 | NA | 0.10 | 0.10 | 18.35 | 5.57 |
| Elgi Equipments Limited | 30,406.98 | 1 | 39.59 | 11.72 | 11.71 | 27.04 | 43.27 |
| Lakshmi Machine Works Limited | 47,191.49 | 10 | 37.15 | 359.47 | 359.47 | 16.42 | 2,189.04 |
| Triveni Turbine Limited | 12,475.50 | 1 | 64.92 | 5.97 | 5.97 | 25.32 | 23.92 |
| TD Power Systems Limited | 8,722.97 | 2 | 41.86 | 6.23 | 6.22 | 16.01 | 38.74 |
Jyoti CNC Automation Ltd IPO Objective
Jyoti CNC Automation plans to utilize INR 450 crores for full or partial repayment of borrowings, allocate INR 300 crores for long-term working capital, and direct the balance towards diverse general corporate purposes, ensuring business growth and stability.
1. Repayment or Pre-payment of certain borrowings, in whole or part, availed by the company: Jyoti CNC Automation plans to utilize INR 450 crores from net proceeds for full or partial repayment of existing borrowings, aiming to reduce debt and enhance financial stability.
2. Funding long-term working capital requirements of the company: The company proposes to utilize INR 300 crores from the net proceeds to meet its capital requirements.The company requires additional funds to commensurate the growth in the business.
3. General corporate purposes: The Company plans to deploy the balance funds towards the general corporate goal, which is not limited to meeting expenses incurred in the ordinary course of business, such as meeting contingencies, fulfilling business requirements, supporting growth opportunities and strategic initiatives, funding capital expenditure, as well as compensating consultants through commissions and fees.
Jyoti CNC IPO Risks And Challenges
Jyoti CNC’s revenue dependence on Auto and auto components and lack of long-term supplier contracts pose risks, alongside competitive challenges and vulnerability to international factors affecting profitability and operations.
- Almost 46% of the company’s revenue depends on Auto and auto components. Any loss of customers will affect the operations of the company.
- Almost 56% of the company’s total expense is contributed by the cost of material consumed and the company does not have any long-term agreement with the supplier.
- The company operates in a competitive industry. Failure to compete effectively may lead to a lower market share or reduced operating margins.
- The company relies on international suppliers for essential manufacturing materials, including CNC controllers, motors, and steel sheets. With no long-term contracts, foreign exchange rate fluctuations pose cost risks, and geopolitical factors may impact imports, potentially affecting business operations and profitability. Supply disruptions are also a potential concern.
Jyoti CNC Automation IPO – Industry & Market Potential
The machine tools market is set to grow due to the expanding manufacturing sector and advancements like multi-axis and robotic systems. High demand from key industries, including automotive and aerospace, is further enhanced by integrating AI, IoT, and robotics, driving overall industry development.
The automotive industry is a significant end-user of machine tools for producing various vehicle parts. Trends in automobile sales influence demand for parts, creating opportunities in the machining centers market. Growing demand for commercial vehicles, particularly in developing economies like India, is expected to increase the automotive segment.
In Industry 4.0, CNC machines with sensors enable autonomous monitoring and self-diagnosis, presenting opportunities and challenges. Precision CNC machining caters to diverse industries, offering superior accuracy and surface finishes. Industry 4.0 facilitates preventive maintenance, reducing downtime and costs through real-time data insights and IoT integration for informed operations and enhanced sustainability.
Jyoti CNC Automation Ltd IPO – Type of Offer
Jyoti CNC Automation is preparing to launch an IPO comprising a fresh issue of Rs. 1,000 crores of equity shares.
Jyoti CNC Automation Ltd IPO Offer Size
Jyoti CNC Automation plans to release an IPO (Initial Public Offering), wherein the Company intends to raise INR 1000 crores. The Company will use the proceeds from this offering to repay borrowings, fund long-term working capital, and fulfill general corporate requirements.
Jyoti CNC Automation Ltd IPO Allotment Structure
Jyoti CNC Automation Limited’s IPO allocation designates 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs) in line with SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% 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): 15% 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 10% 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.
● Eligible Employees: A portion of the offer is reserved for the employees.
How to apply for Jyoti CNC Automation IPO?
To apply for the Jyoti CNC Automation Limited through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Jyoti CNC Automation Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Jyoti CNC Automation Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post 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 to Check Jyoti CNC Automation IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. 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.
3. 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.
4. Select the Jyoti CNC Automation 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 Jyoti CNC Automation Limited IPO.
5. 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 to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Jyoti CNC Automation Limited IPO:
Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the Jyoti CNC Automation 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 the allotment process has been completed, a few days after the IPO window closes.
Jyoti CNC Automation IPO Offer Registrar
The registrar for the Jyoti CNC Automation Limited IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In time India Private Limited
C 101, 1st Floor, 247 Park, L.B.S. Marg,
Vikhroli West, Mumbai 400 083
Tel: +91 810 811 4949
E-mail: [email protected]
Website: www.linkintime.co.in
Jyoti CNC Automation Limited IPO FAQs
The allotment date of the Jyoti CNC Automation Limited IPO is January 12, 2024.
The price band for the Jyoti CNC Automation Limited IPO issue is INR 315 to 331 per share.
Jyoti CNC Automation Limited is preparing to launch an initial public offering (IPO) involving the insurance of new equity shares amounting to INR 1000 crores to the public. The Company will use the funds raised to repay borrowings, fund long-term working capital, and fulfill general corporate requirements.
The listing date for the Jyoti CNC Automation Limited IPO is January 16, 2024 announced by the company.
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