JK Files and Engineering has filed papers with market regulator SEBI for raising ₹800 crore through an initial public offer. The issue will be an offer of sale by the existing promoter Raymond.

The offer includes reservation to employees and Raymond shareholders.

JK Files and Engineering manufactures precision-engineered components for tools and hardware (files and drills), markets hand tools, power tool accessories and power tool machines, and manufactures auto components and engineering products (ring gears, flexplates and water pump bearings).

It has the largest installed manufacturing capacity and was the second largest supplier globally of steel files. Its subsidiary — RPAL — is among the key global ring gear players and has the highest volume share in terms of supply to original equipment manufacturers for domestic production of PV and CV last fiscal.

The domestic market for files is expected to grow at a CAGR of five per cent in next five fiscals, while the global files market size is expected to grow at a CAGR of 4 per cent till 2026.

Demand to grow

Domestic demand for drills, hand tools and power tools markets are expected to grow at a CAGR of 5-8 per cent. Further, the Indian ring gear and flexplates industries are expected to grow at a CAGR of 13-20 per cent till FY26.

JK Files and Engineering expects the listing to enhance visibility and brand image besides providing liquidity to shareholders.

The company recorded significant growth in consolidated profit at ₹26 crore last fiscal, compared to ₹14 crore on strong operational income, but revenue fell to ₹344 crore from ₹376 crore in the same period. Profit in the June quarter was at ₹10 crore on revenue of ₹110 crore.

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