In a significant development for the Indian capital markets, JNK India Ltd, a leading manufacturer of heating equipment, has publicized details surrounding its forthcoming initial public offering (IPO). Slated to go public on April 23, the company has set the price range for its shares at Rs 395 to Rs 415. The subscription period for the general public is scheduled from April 23 to April 25, with a preceding anchor investor bidding process earmarked for April 22.
The IPO comprises a fresh issuance of equity shares totaling up to Rs 300 crore combined with an Offer for Sale (OFS) for approximately 84.21 lakh equity shares. This OFS section involves the company’s promoters – Goutam Rampelli, Dipak Kacharulal Bharuka, JNK Heaters Co Ltd, and Mascot Capital and Marketing Pvt Ltd – as well as an existing shareholder, Milind Joshi, divesting their stakes.
Aiming to raise about Rs 650 crore at the upper end of the price bracket, JNK India has earmarked the proceeds from the fresh issue segment for the enhancement of its working capital reserves and for other general corporate endeavours.
The investing populace will notice that the IPO aperture has been delicately allocated among various investor classes: fifty percent reserved for qualified institutional buyers, thirty-five percent made available to non-institutional investors, and the leftover fifteen percent dedicated to retail investors. Prospective shareholders have to conform to the minimum application size of 36 equity shares, and thereafter, stakes can be scaled up in multiples of 36.
JNK India’s specialization lies in the design, engineering, manufacturing, supply, installation, and commissioning of heating equipment—a service integral to the infrastructure of industries such as oil and gas refineries, petrochemical establishments, fertilizer production, and plants for hydrogen and methanol processing.
On the financial performance front, JNK India has demonstrated robust growth. As of December 31, 2023, the company’s order book boasted an impressive Rs 845 crore. Their consolidated revenue showed a steep ascent of 37.42 percent to Rs 407.30 crore for the fiscal year 2023, marking a significant increase from the Rs 296.40 crore turnover achieved in the previous fiscal period. Parallelly, the net profit surged by 29 percent, climbing to Rs 46.36 crore from the preceding year’s Rs 35.98 crore.
With IIFL Securities and ICICI Securities at the helm as book-running lead managers for the IPO, the company is keen on making its mark on the BSE and NSE through this much-anticipated listing.
This corporate maneuver is set against a backdrop where industry players are striving to tap into the equity markets to fuel their growth and expansion plans. JNK India Ltd’s forthcoming IPO and their intent to use the proceeds to scale operations and strengthen their market position exemplify the strategic initiatives companies are taking to solidify their financial foundation and propel future growth. The company’s assertive revenue figures and strong order book presence underscore its market resilience and potential to leverage the growth trajectory of the industrial heating sector, both domestically and internationally. As the IPO dates approach, investor focus will undoubtedly be tuned into the prospects that JNK India Ltd presents in the dynamic landscape of India’s capital market.
