Shares of JNK India will be listed today on the bourses. The company fixed the IPO price at ₹415, and at the upper end of the price band, ₹395-415. 

The IPO saw a strong response, especially from institutional investors, as it was subscribed 28 times. While the QIB was subscribed a whopping 75.72 times, the portion allocated to NIIs and retail investors received bids 23.19 times and 4 times, respectively. 

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said given the positive secondary market environment and healthy subscription demand on the last day of the issue gives good room for healthy listing around 22-25 per cent premium against the issue price of ₹415 a share.  

“We believe the listing is justified due to its niche market leadership in heating equipment completing the value chain in heaters, reformers and cracking furnace along with a strong track record of over a decade. Furthermore, JNK India’s expansion into waste gas handling and renewable energy systems showcases their adaptability and readiness to capitalise on emerging market opportunities. Based on annualizsd FY 2024 earnings and fully diluted post-IPO paid-up capital, the company was asking a PE of 37.46x which seems the valuations were reasonably priced when compared to peers.” 

Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said JNK India is gearing up for a potential blockbuster listing on the stock exchange. The grey market premium currently sits at ₹125, translating to a premium of approximately 30 per cent over the issue price, further fueling optimism. 

The IPO comprised a fresh issue worth ₹300 crore and an offer for sale (OFS) of up to 84.21 lakh equity shares (worth ₹349.47 crore) by promoters and an existing shareholder. Promoters Goutam Rampelli, Dipak Kacharulal Bharuka, JNK Heaters Co Ltd, Mascot Capital and Marketing Pvt Ltd, and shareholder Milind Joshi offloaded shares in the OFS. 

As part of the IPO, the company garnered ₹195 crore from anchor investors, including marquee investors such as Goldman Sachs, Kotak Mahindra Mutual Fund (MF), HDFC MF, LIC MF, DSP MF, Bajaj Allianz Life Insurance Company, and Aditya Birla Sun Life Insurance Company. 

Proceeds from the fresh issue will fund working capital requirements (worth Rs. 262.69 crore) and general corporate purposes. 

JNK India is engaged in thermal designing, engineering, manufacturing, supplying, installing, and commissioning heating equipment and caters to domestic and overseas markets. Heating equipment is required in industries such as oil and gas refineries, petrochemicals, fertilisers, hydrogen, and methanol plants.

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