JNK India Limited

About  JNK India Limited

Incorporated in 2010, JNK India Limited is one of the most prominent manufacturers of process-fired heaters, reformers and cracking furnaces, together known as the heating equipment in India. It collaborates with its customers from the initial consultation, specification and design stage to the final installation of the heating equipment used in process industries such as oil and gas refineries, petrochemical and fertiliser industries.

Its products are fabricated based on customer requirements at its in-house fabrication facility situated at Mundra, Gujarat, where fabrication is undertaken for export purposes only. Otherwise, it takes facilities on lease on a situational basis, which are shut down after the projects are completed.

It is present in the domestic and international markets and has completed projects in Andhra Pradesh, Assam, Bihar, Karnataka, Kerala, Maharashtra, Tamil Nadu, West Bengal, Nigeria and Mexico. It also has ongoing projects in Gujarat, Odisha, Haryana, Rajasthan in India and globally in Oman, Algeria, and Lithuania. 

As of 31 December 2023, it has served 21 customers in India and 8 customers overseas. Some of its customers include Indian Oil Corporation, Tata Projects, Rashtriya Chemicals & Fertilizers, Numaligarh Refinery, a leading EPC (engineering, procurement and construction) company in Europe, a leading oil & gas exploration & production company in Oman and a Middle East arm of European EPC company in oil and gas. 

The company has ventured into manufacturing flares and incinerators along with building capabilities in the renewable sector with onsite hydrogen production, hydrogen fuel stations and solar photovoltaic – EPC which forms part of the green hydrogen value chain.

Between FY21 and FY23, it saw a CAGR rise of 43% in its revenue from operations and 41% in its profit. Moreover, the cumulative order booking for the heating equipment suppliers in India may see a ~80% jump between FY24 and FY29, compared to the cumulative order booking in the last six years. This could benefit the company. 

And now, JNK India Limited is coming out with its initial public offer (IPO). The IPO will be a fresh issue as well as an offer for sale. The money raised from the fresh issue will be utilised to fund working capital requirements and for general corporate purposes. Its shares will be listed on the NSE and BSE.

Here are key details about the JNK India Limited IPO:

Financial snapshot

Here’s a quick look at JNK India Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Established track record as it is currently serving 11 of the 24 oil refineries across India and enjoys repeat orders from certain large domestic customers. 
2. There are 18 refinery projects expected to be commissioned by FY31 in India and the company is well-positioned to capture the growing demand in heating equipment.
3. JNK India is one of the two prominent players in the heating equipment market along with Thermax Limited. Meanwhile, the Indian heating equipment market is closely competed among seven companies.
4. It is diversifying its product portfolio to cater to various industries such as oil and gas refineries, petrochemicals, fertilisers, hydrogen and methanol plants. 
5. Demonstrated financial performance with EBITDA margins of 18%, 18%, 18% and 27% as of FY21, FY22, FY23, and Q3 FY24, respectively.
6. Has been recognised for early completion of projects, awarded a certificate of appreciation towards ‘Safety Compliance and Campaign Performance’ in Nigeria in March 2022, and for providing four million safe manhours in November 2022. 

Risks and threats

1. Any dissociation with its corporate promoter, JNK Global, may have an adverse effect on its business as it uses its experience and technology support for select projects accounting for 54%, 73%, 54%, and 27% of its revenues as of FY21, FY22, FY23, and Q3 FY24, respectively.
2. Dependent on the oil and gas, petrochemical and fertilisers industry and a downside in their capital expenditure will affect its business and revenues.
3. Subject to laws and regulations such as the environmental and health and safety laws and failing to obtain or retain licences may affect its operations.
4. Outsources its fabrication process to third parties as it is an asset light business which can present quality and efficiency issues, along with other risks like adverse changes in the financial conditions of the third parties.
5. Operates a capital intensive business with working capital requirements amassing to ₹169 crore as of Q3 FY24, which requires it to borrow or raise additional financing. 
6. Faces competition from Thermax, Bharat Heavy Electricals, Esteem Projects, Heurtey Petrochem Solutions (France), TR Engineering (Spain), and ITT Engineering India (Italy). 

JNK India Limited IPO details

| JNK India Limited IPO date

According to the offer document filed by the company with the SEBI, the JNK India IPO’s opening date – in other words, the JNK India IPO launch date – will be 23rd April 2024. The JNK India IPO closing date is 25th April 2024. After this, investors will be updated about the allotment status on 26th April 2024.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 29th April 2024. The JNK India IPO listing date is 30th April 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

| JNK India Limited IPO Price Band

The IPO is a fresh issue as well as an offer for sale. The JNK India IPO price band has been set between ₹395 and ₹415 per share. Interested investors can choose a price within this band to apply for the IPO. 

The JNK India IPO listing price will be determined on 30th April 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

| JNK India Limited IPO Lot size

The JNK India IPO details have been declared. The JNK India IPO lot size is set at 36 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the JNK India IPO issue size is approx ₹649 crore. 

How to pre-apply for the JNK India Limited IPO?

You can pre-apply for the JNK India Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘JNK India Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the JNK India Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the JNK India Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the JNK India Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘JNK India Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the JNK India Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the JNK India Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your JNK India Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the JNK India Limited IPO

To apply for the JNK India Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the JNK India Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the JNK India Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.