Shares of JNK India makes strong listing at the bourses on Tuesday. Against an IPO price of ₹415, the stock listed at ₹620 on the BSE — up 49.39 per cent — and zoomed further 71.56 per cent to hit a high of ₹712 during the day. The stock ended at ₹693.95 — a gain of 67.21 per cent.

The IPO saw a strong response, especially from institutional investors, as it was subscribed 28 times.

Tarun Singh, MD, Highbrow Securities, said: “I believe the IPO of JNK India stood out because, it not only had the financials to demonstrate its value but also made the strategic decision to set its valuation lower than the benchmarks of its listed competitors. This approach led to a superior valuation that was more appealing for investors to endorse.”

According to Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, JNK India, defied even optimistic pre-listing forecasts with a spectacular debut on the stock exchanges.

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“While the initial surge might be followed by some volatility, the strong fundamentals and positive outlook suggest long-term potential,” he added..

Anchor investors

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 shareholders.

As part of the IPO, the company garnered ₹195 crore from anchor investors, who included Goldman Sachs, Kotak Mahindra Mutual Fund, 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 ₹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