The ₹1,000-crore Jyoti CNC Automation’s initial public offering (IPO) has been subscribed 3.92 times so far on the back of a strong response from retail investors and employees. The Gujarat-based company has set the price band as ₹315-331 per share. The subscription window for the IPO closes today.
Investors can bid for a minimum of 45 equity shares. The company has reserved 75 per cent of the issue size for qualified institutional buyers, 15 per cent for non-institutional investors, and the remaining 10 per cent for retail individual investors.
While the portion reserved for retail investors was subscribed 11 times, employee quota received bids 5 times the allocated shares at the end of Day 2. Non-institution or HNI portion was subscribed 6.5 5imes and institutional investors’ portion by 0.22 times.
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The entire IPO is fresh issue of equity shares and the proceeds will be used for debt payment, funding the long-term working capital requirements of the company and for general corporate purposes.
As part of IPO, Jyoti CNC Automation on Monday raised ₹448 crore from 37 anchor investors at the upper price band of ₹331 a share. Among the marquee investors included Nomura Funds Ireland Public Limited Company, Goldman Sachs Funds, Eastspring Investments India Fund , HDFC Life Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd, ICICI Prudential Fund , Nippon Life India Trustee Ltd and Axis Mutual Fund Trustee Ltd.
Jyoti CNC Automation, manufacturer of computer numerical control (CNC) machines, has prominent customer base that include ISRO, BrahMos Aerospace Thiruvananthapuram Ltd, Turkish Aerospace, MBDA, Uniparts India, Tata Advanced System Ltd, Tata Sikorsky Aerospace Ltd, Bharat Forge Ltd, Kalyani Technoforge Ltd, Rolex Rings Ltd and Bosch Ltd.
As of September 2023, the company had an order book of ₹3,315.33 crore.
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Equirus Capital, ICICI Securities, and SBI Capital Markets are the book running lead managers to the issue.
This is the second attempt by the company to tap capital market in nearly 10 years. In 2013, Jyoti CNC had filed draft papers with SEBI for IPO but shelved the plan later.