Jyoti CNC Automation had a successful debut on January 16, with its stock listing at a 12.3 percent premium over the IPO price. The stock opened at Rs 370 on the NSE and Rs 372 on the BSE, surpassing the issue price of Rs 331. Analysts had anticipated a slightly higher premium of 15-18 percent, ranging between Rs 380 and Rs 390.
Leading up to the listing, the stock was trading at an 11 percent premium in the grey market, an unofficial trading platform where shares are traded before the IPO allotment and continue until the listing day. Investors often monitor the grey market premium (GMP) to gauge the likely listing price.
The IPO received strong demand, with an oversubscription rate of 38.5 times. Qualified institutional buyers (QIBs) led the way, subscribing 44.13 times their allocated quota. Retail investors also showed significant interest, subscribing 26.1 times, while high net-worth individuals (HNIs) subscribed 36.4 times their allocated quota.
The IPO was open for subscription from January 9 to January 11, with a price band of Rs 315-331 per share. The Rs 1,000 crore public offer consisted entirely of fresh issue shares, totaling three crore shares.
The proceeds from the IPO will be used for long-term working capital requirements, loan repayment, and general corporate purposes. Equirus Capital, ICICI Securities, and SBI Capital Markets served as the lead managers for the IPO, with Link Intime India as the registrar.
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Jyoti CNC Automation manufactures and supplies metal-cutting computer numerical control (CNC) machines. Its client base includes notable organizations such as ISRO, BrahMos Aerospace, Turkish Aerospace, Uniparts India, Tata Advances System, Tata Sikorsky Aerospace, Bharat Forge, Shakti Pumps, Rolex Rings, Bosch Limited, HAWE Hydraulics, Festo India, and Elgi Rubber.
