Jyoti CNC Automation Limited is launching its IPO. The opens for subscription on January 9, 2024 and will close on January 11, 2024.
What does Jyoti CNC Automation Limited do?
Jyoti CNC Automation Limited stands as a global leader in manufacturing metal-cutting CNC machines, securing the third-largest market share in India and the twelfth globally. With over two decades of expertise and a strong focus on R&D, they offer a wide array of CNC (Computer Numerical Control) machines catering to various industries such as aerospace, defense, automotive, and more.
The expanding demand for precision machinery across sectors like aerospace and defense fuels the company’s growth. Their clientele includes prominent names like ISRO, Turkish Aerospace, Bosch and more.
Boasting a diverse portfolio of 200+ variants, they’ve sold over 8,400 machines across 3,500 customers globally in recent periods. The company’s strategic expansions and acquisitions, including its acquisition of Huron, demonstrate its dedication to worldwide outreach and technological innovation. With the help of strong R&D centers in France and India, the company continues to be dedicated to innovation, personalized products, and effective operations. Furthermore, continuous operational improvements, such as putting in place a sand processing machine and a cupola furnace, demonstrate their commitment to enhancing manufacturing procedures for lower costs and more efficient operations.
The product range includes:
- CNC turning centers
- CNC turning-milling centers
- CNC vertical machining centers (VMCs)
- CNC horizontal machining centers (HMCs)
- Simultaneous 3-axis CNC machining centers, simultaneous 5-axis CNC machining centers, and multi-tasking machines.
What is the issue size of Jyoti CNC Automation Limited IPO?
The entire public offer of the company is a fresh issue of equity shares aggregating up to Rs 1000 crores.
Financial information and other valuation metrics (in crores)
| Particulars | As of March 31, 2023 | As of March 31, 2022 | As of March 31, 2021 |
|---|---|---|---|
| Total Assets | 1515.38 | 1286.23 | 1388.19 |
| Total revenue | 952.60 | 750.06 | 590.09 |
| Net Cash and cash equivalents at year-end | 16.09 | 2.44 | 10.11 |
| Profit after taxes | 15.06 | (48.30) | (70.03) |
| EBITDA | 97.37 | 72.66 | 31.68 |
Risk factors to consider:
The company faces considerable debt obligations with a high debt-to-equity ratio and low debt-service coverage ratio, posing risks to liquidity and debt repayment. Historical losses and potential future losses may impede growth opportunities and limit actions such as dividend distributions.
The company has previously experienced delays in submitting audited consolidated financial statements. There’s no guarantee that the company won’t face any consequences or actions due to this delay.
The company has previously rescheduled payments on credit facilities from its lenders and experienced delays in repaying both principal amounts and interest on loans due to this, a credit rating downgrade could hinder the company’s access to debt and potentially influence the market value of their Equity Shares.
The company has taken unsecured loans that lenders can demand back anytime, potentially affecting financial stability. Additionally, there’s a possibility of converting these loans into Equity Shares, potentially leading to dilution of existing shareholders’ holdings.
The company lacks recurring orders from customers annually or bi-annually, relying heavily on long-standing relationships, posing a significant risk of customer attrition. Any delays or defaults in client payments may lead to potential profit reductions.
Schedule of Jyoti CNC Automation Limited IPO
| Issue Period | 9th January to 11th January 2024 |
|---|---|
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | January 12, 2024 |
| Initiation of Refunds | January 15, 2024 |
| Credit of Shares | January 15, 2024 |
| Date of Listing | January 16, 2024 |
| Mandate end date | January 26, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | February 11, 2024 |
Anchor Investors Lock-In End Date (Remaining investment) April 11, 2024
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
How to apply to the Jyoti CNC Automation Limited IPO?
You can apply for the Jyoti CNC Automation Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for Jyoti CNC Automation Limited IPO?
You can check the allotment status for the Jyoti CNC Automation Limited IPO on the website of the Registrar and Transfer agent.