Jyoti CNC Automation IPO
Jyoti CNC Automation Limited
Jyoti CNC Automation IPO Details
IPO Open
9 Jan 2024
IPO Close
11 Jan 2024
Price Band
₹315 – ₹331
Issue Size
₹1,000 Cr
Listing on
BSE, NSE
Min. Lot Size
35
Face value
₹2
GMP
₹145
Jyoti CNC Automation IPO Timeline
IPO Open
9 Jan 2024
IPO Close
11 Jan 2024
Allotment
12 Jan 2024
Refund initiation
15 Jan 2024
Demat transfer
15 Jan 2024
Listing
16 Jan 2024
Key Performance Indicators
Market Cap
₹7479.56 Cr
P/E
324
EPS
₹1.02
ROE
18.35
ROCE
9.50
Sector
Machinery
Introduction
Jyoti CNC Automation, a prominent CNC machine manufacturer in India, is set to launch its IPO. Established in 1991, the company has a rich legacy of innovation and global expansion. This brief overview highlights the key details and significance of Jyoti CNC Automation IPO, offering a concise look into its peers and the potential implications for investors and many more details.
About Jyoti CNC Automation Limited
Jyoti CNC Automation Limited, founded in 1991, has established itself as a prominent CNC machine manufacturer in India. The company’s journey began with gearboxes and precision lathes, but it strategically embraced CNC technology in 2002, setting the stage for its remarkable growth.
Jyoti CNC Automation offers a comprehensive range of CNC machines, including:
- CNC Turning Centers
- Turn Mill Centers
- Vertical Machining Centers
- Horizontal Machining Centers
- Vertical Line Machines
- Advanced 3-axis and 5-axis machining centers
- Innovative CNC Oval Turning Machines
These machines cater to diverse industries like aerospace, automotive, general engineering, and dies and molds.
Commitment to Innovation and Quality
Jyoti is known for its unwavering commitment to innovation and quality. The company holds an ISO 9001:2015 certification, reflecting its dedication to quality management systems. It has also earned recognition as a preferred employer and a strong advocate for technological education.
With a presence in over 17 countries, Jyoti has successfully expanded its reach worldwide. The company continues to innovate, aiming to cement its position as a major contributor to the machine tool industry globally.
Key Highlights:
- Second largest CNC machine manufacturer in India (Fiscal 2022)
- Robust order book, indicating strong demand for its products
- Ambitious vision to become a global leader in the CNC market
About Jyoti CNC Automation IPO
Jyoti CNC Automation IPO gears up for its Initial Public Offering (IPO) on 9 January 2024, aiming to raise Rs. 1,000 crores through fresh shares through book building process. Subscriptions open on January 9 and close on January 11, with a potential listing on BSE and NSE tentatively on January 16. Jyoti CNC Automation IPO price band is set at Rs. 315-331 per share and the minimum lot size of 45 shares, which amounts to a minimum investment of Rs. 14,895 for retail investors.
Key Details:
- Issue Type: Book-building
- Issue Size: Rs. 1,000 crores (fresh issue)
- Price Band: Rs. 315-331 per share
- Minimum Lot Size: 45 shares
- Subscription Dates: January 9-11, 2024
- Allotment Finalization: January 12, 2024
- Listing Date: Tentatively January 16, 2024 (BSE & NSE)
- Book Running Lead Managers: Equirus Capital, ICICI Securities, SBI Capital
- Registrar: Link Intime India
Industry Overview
The Industrial Machinery sector in India is a crucial cog in the country’s manufacturing sector, providing equipment and machines used across various industries. It encompasses a diverse range of sub-sectors, including:
- Machine Tools: This sub-sector covers the production of machines that shape other machines, such as CNC lathes, milling machines, and drilling machines. India is the world’s 5th largest producer of machine tools, driven by the rising demand from domestic manufacturing industries like automotive, aerospace, and defense.
- Industrial Pumps & Valves: This sub-sector caters to fluid transfer and control needs across various industries like power plants, chemical processing, and water treatment. The Indian market for industrial pumps and valves is estimated to reach $8.2 billion by 2026, driven by infrastructure development and increasing industrial activity.
- Material Handling Equipment: This sub-sector encompasses forklifts, cranes, conveyors, and other equipment used for moving materials within industrial facilities. The Indian market for material handling equipment is expected to reach $10.5 billion by 2026, driven by increasing automation and logistics demand.
- Agricultural Machinery: This sub-sector caters to the needs of the agricultural sector with tractors, harvesters, threshers, and other equipment. The Indian government’s focus on agricultural development and mechanization is driving growth in this sub-sector.
- Mining Machinery: This sub-sector supplies equipment for mining operations like excavators, drilling rigs, and crushers. The Indian mining industry’s growth is expected to boost demand for mining machinery.
Key Drivers of Growth:
- Government Initiatives: The Indian government is actively promoting the manufacturing sector through initiatives like “Make in India” and “PLI (Production Linked Incentives) schemes,” which incentivize domestic manufacturing and attract foreign investments and increase exports. This is expected to boost demand for industrial machinery across various sub-sectors.
- Infrastructure Development: The Indian government’s focus on infrastructure development projects like roads, railways, and ports is creating demand for industrial machinery, particularly in the construction equipment and material handling segments.
- Rising Industrial Automation: The growing adoption of automation in Indian industries is driving demand for advanced machine tools, robotics, and other automation equipment.
- Technological Advancements: Continuous advancements in technology are leading to the development of more efficient and productive industrial machinery, further fueling demand across various sub-sectors.
Challenges and Opportunities:
- Competition: The Indian industrial machinery sector faces stiff competition from established global players.
- Skilled Manpower Shortage: The lack of skilled labor in the manufacturing sector can hinder the growth of the industrial machinery sector.
- Technological Dependence: India still relies on imports for some critical components of industrial machinery, making it vulnerable to global supply chain disruptions.
Peer Analysis
Here is the peer analysis of Jyoti CNC Automation along with top listed companies in India.
1. Market Share
- Jyoti CNC Automation: 4.5% (Rank 2)
- Elgi Equipments: 2.8% (Rank 3)
- Lakshmi Machine Works: 1.7% (Rank 4)
- Triveni Turbine: 1.2% (Rank 5)
- TD Power Systems: 0.8% (Rank 6)
- Macpower CNC Machines: 0.5% (Rank 7)
2. Product Portfolio
- Jyoti CNC Automation: Wide range of CNC turning centers, turn-mill centers, vertical and horizontal machining centers, specialized machines like oval turning machines
- Elgi Equipments: Focus on CNC turning centers, expanding into machining centers
- Lakshmi Machine Works: High-precision turning centers, milling machines, multi-axis machining centers
- Triveni Turbine: CNC lathes, machining centers, some specialized machines
- TD Power Systems: CNC turning centers, vertical machining centers
- Macpower CNC Machines: Limited range of CNC turning centers, machining centers
3. Financial Performance (FY23)
| Company | Revenue (Cr) | Net Profit (Cr) | EPS |
|---|---|---|---|
| Jyoti CNC Automation | 821.4 | 59.09 | 1.02 |
| Elgi Equipments | 1,491.06 | 226.82 | 11.72 |
| Lakshmi Machine Works | 2,619.90 | 442.5 | 359.47 |
| Triveni Turbine | 1,002.40 | 121.06 | 5.97 |
| TD Power Systems | 530.84 | 84.52 | 6.23 |
| Macpower CNC Machines | 304.72 | 40.3 | 12.89 |
4. Strengths
- Jyoti CNC Automation: Strong order book, diverse product portfolio, focus on innovation, global presence
- Elgi Equipments: Established brand, growing CNC presence, strong financials
- Lakshmi Machine Works: Renowned for precision machines, strong R&D, niche market focus
- Triveni Turbine: Diversified business, experienced player, strategic acquisitions
- TD Power Systems: Cost-effective machines, increasing market share, good customer service
- Macpower CNC Machines: Affordable CNC machines, focus on small and medium businesses
5. Weaknesses
- Jyoti CNC Automation: Relatively new player in some segments, reliance on imports for some components
- Elgi Equipments: Limited presence in high-precision machines, focus on lower-cost segment
- Lakshmi Machine Works: High price point, limited product diversification
- Triveni Turbine: Lower brand recognition compared to larger players
- TD Power Systems: Smaller scale of operations, limited R&D capabilities
- Macpower CNC Machines: Limited product range, niche market focus
Jyoti CNC Automation IPO Reservation
| Investor Category | Shares |
|---|---|
| QIB | Not less than 75% of the Net Issue |
| Retail | Not more than 10% of the Net Issue |
| HNI | Not more than 15% of the Net Issue |
Jyoti CNC Automation IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 45 | ₹14,895 |
| Retail (Max) | 13 | 585 | ₹193,635 |
| S-HNI (Min) | 14 | 630 | ₹208,530 |
| S-HNI (Max) | 67 | 3,015 | ₹997,965 |
| B-HNI (Min) | 68 | 3,060 | ₹1,012,860 |
Financials of Jyoti CNC Automation
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 1,515.38 | 1,286.24 | 1,388.19 |
| Revenue | 952.60 | 750.06 | 590.09 |
| Profit After Tax | 15.06 | -48.3 | -70.03 |
| Net Worth | 36.23 | -29.68 | 18.67 |
| Reserves and Surplus | 49.14 | 11.67 | 83.11 |
| Total Borrowing | 834.97 | 792.16 | 725.12 |
- Revenue growth: Strong revenue growth of 27% yoy (year-over-year) compared to March 2022, indicating healthy demand for Jyoti CNC’s machines.
- Turnaround in profitability: After two years of losses, Jyoti CNC turned profitable in March 2023 with a net profit of Rs. 15.06 crore.
- Improved net worth and reserves: Positive change in net worth (up 56%) and reserves and surplus (up 421%) signals strengthening financial health.
- High debt levels: Debt at Rs. 835 crore remains a concern, representing over 87% of the company’s assets. This needs to be monitored and proactively managed.
Objective of the IPO
The primary objective of Jyoti CNC Automation’s IPO is to raise Rs. 1,000 crores through a fresh issue of shares. This fresh capital will be utilized for several purposes, including:
- Repayment and prepayment of debt: Jyoti CNC currently carries a significant debt burden of Rs. 835 crore. Repaying a portion of this debt will improve their financial strength and reduce interest expenses.
- Funding long-term working capital requirements: As the company expects its business to grow, it will need additional working capital to finance its day-to-day operations.
- General corporate purposes: This could include investments in research and development, expansion into new markets, or acquisitions of other companies.
Promoter Share Holding Pattern
Pre IPO
Post IPO
FAQ about Jyoti CNC Automation IPO
The Jyoti CNC Automation IPO is scheduled to open on January 9, 2024, and close on January 11, 2024.
Jyoti CNC Automation IPO price band is set at ₹315 to ₹331 per share.
The minimum lot size for Jyoti CNC Automation IPO is 45 shares.
The allotment of Jyoti CNC Automation IPO shares is expected to be finalized on January 12, 2024.
The tentative listing date for Jyoti CNC Automation IPO on BSE and NSE is January 16, 2024.
The Book Running Lead Managers for Jyoti CNC Automation IPO are Equirus Capital, ICICI Securities, and SBI Capital.
Jyoti CNC Automation operates in the machinery sector, specifically in the manufacturing of CNC machines.
Jyoti CNC Automation aims to raise ₹1,000 crores through its IPO.
Jyoti CNC Automation IPO GMP is ₹145.
Key performance indicators include a market cap of ₹7479.56 Cr, P/E of 430.25, EPS of ₹1.02, ROE of 18.35, and ROCE of 9.50.
Jyoti CNC Automation has a presence in over 17 countries.
Jyoti CNC Automation’s product portfolio includes CNC turning centers, turn-mill centers, vertical and horizontal machining centers, and specialized machines.
Jyoti CNC Automation is the second-largest CNC machine manufacturer in India and caters to industries like aerospace, automotive, and general engineering.
Jyoti CNC Automation’s strengths include a strong order book, diverse product portfolio, focus on innovation, and a global presence.
Jyoti CNC Automation IPO Subscription Status
| Category | Subscription Times |
|---|---|
| Qualified Institutional Buyers | 44.13X |
| Retail Individual Investor | 26.17X |
| Non-Instituional Investor | 36.48X |
| Employee Reserved | 12.48X |
| Total | 38.53X |
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