Jyoti CNC Automation Limited

About Jyoti CNC Automation Limited  Incorporated in 1991, Jyoti CNC Automation Limited is one of the world’s leading metal-cutting computer numerical control (CNC) machines manufacturer. It held the third largest market share in India in FY23 and the twelfth largest market share globally in 2022.  Its portfolio of CNC machines includes CNC Turning Centers, CNC Turn Mill Centers, CNC Vertical Machining Centers (VMCs) and CNC Horizontal Machining Centers (HMCs). It offers over 200 variants across 44 series and has supplied over 30,000 CNC machines globally since 1 April 2004.  In the last three fiscals and the 6 month period ended September 2023, it sold its products to 3,500 customers based in India and across 16 other countries based in Asia, Europe, North America and the rest of the world. It has principal offices in India, France, Germany, Turkey and Canada, and sells its products in Romania, France, Poland, Belgium, Italy, and the United Kingdom through Huron’s established dealer network. It also has 29 sales and service centres spread across 12 states in India.  Some of its customers include ISRO, BrahMos Aerospace Thiruvananthapuram, Turkish Aerospace, Uniparts India, AVTEC, Tata Advanced System, Tata Sikorsky Aerospace, Bharat Forge, C.R.I. Pumps, Kalyani Technoforge, Shakti Pumps (India), Shreeram Aerospace & Defence LLP and Rolex Rings.  It operates three manufacturing facilities - 2 in Gujarat and 1 in Strasbourg, France with the capacity to manufacture 4,400 machines per annum in India and 121 machines per annum in France as of 30 September 2023. Its R&D facility is situated in Rajkot, Gujarat, along with an R&D team in Strasbourg, France. As of 30 September 2023, its R&D team aggregated 141 employees in Rajkot, Gujarat and Strasbourg, France.  Between FY21 and FY23, it saw a CAGR rise of 17% in its revenue from operations. As of 30 September 2023, its order book accounted for ₹3,315 crore. Moreover, the CNC machine market is expected to grow globally at a CAGR of 10% between 2023 and 2027, which could be beneficial for the company.  And now, Jyoti CNC Automation Limited is coming out with its initial public offer (IPO). The IPO will be a fresh issue and the money will be utilised to repay borrowings, fund long-term working capital requirements and for general corporate purposes. Its shares will be listed on the NSE and the BSE.  Here are key details about the Jyoti CNC Automation Limited IPO:     Company Name  Jyoti CNC Automation Limited Limited   Company Type  Private    Company Established On  1991   Jyoti CNC Automation Limited IPO Opening Date  9th January 2024    Jyoti CNC Automation Limited IPO Closing Date  11th January 2024   Jyoti CNC Automation Limited IPO Allotment Status  12th January 2024    Credit of Shares to the Demat Account  15th January 2024   Jyoti CNC Automation Limited IPO Listing Date  16th January 2024    Jyoti CNC Automation Limited IPO Face Value  ₹2 per share   Jyoti CNC Automation Limited IPO Lot Size  45 shares    Jyoti CNC Automation Limited IPO Issue Size  Approx ₹1000 crore   Jyoti CNC Automation Limited IPO to be Listed on  BSE, NSE    Jyoti CNC Automation Limited IPO Price band  ₹315 – ₹331 per share        Financial snapshot     Particulars  FY21  FY22  FY23    Revenue  ₹ 580 crore  ₹ 746 crore  ₹ 929 crore    Net Profit/Loss  ₹ -70 crore  ₹ -48.3 crore  ₹ 15.0 crore              Here’s a quick look at Jyoti CNC Automation Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   One of the leading CNC machine manufacturing companies with ~10% market share in India in FY23 and a prominent manufacturer of simultaneous 5-axis CNC machines in India.  Has been recognised as ‘Best Brand in the Metal Cutting Industry’ by the Economic Times for five consecutive years from 2018 to 2022.  Well diversified global customer base as it supplied over 8,400 machines to more than 3,500 customers in India and abroad during the 6 months period ended 30 September 2023 and the last 3 Fiscals.  Spread across diverse end-user industries such as Aerospace and Defense, Auto & auto components, General Engineering, Dies & Moulds, EMS and others.  Focus on technology as its product portfolio comprises entry-level products to sophisticated machines, including high-speed simultaneous 5-Axis, multi-purpose, multi-tasking machines. Additionally, it acquired Huron Graffenstaden SAS, a worldwide pioneer in the 5-Axis machining technology, in November 2007.  Vertically integrated operations, including captive foundry, machining, sheet metal unit, paint shop and assembly unit.   Risks and threats   Has incurred losses amassing to ₹70 crore and ₹48 crore in FY21 and FY22 respectively, primarily due to losses incurred by its subsidiaries.  It does not enter into long-term purchase contracts with its customers.  Has incurred significant indebtedness with total borrowings amounting to ₹834 crore in FY23 and total outstanding indebtedness amounting to ₹976 crore as of 30 September 2023.  Has a large workforce of 2,624 employees as of 30 September 2023 and its employee benefit expense constituted ~17% of its total expense.  It sources some of its input materials from international suppliers exposing it to the risk of forex rate fluctuations.  Capital-intensive business with a working capital requirement of ₹552 crore as of 31 March 2023.  Operates in the capital goods industry which is sensitive to general economic downturns.  COVID-19 had an adverse material effect on the machine tools industry.            Jyoti CNC Automation Limited IPO details  |Jyoti CNC Automation Limited IPO date  According to the offer document filed by the company with the SEBI, the Jyoti CNC Automation IPO’s opening date – in other words, the Jyoti CNC Automation IPO launch date – will be 9th January 2024. The Jyoti CNC Automation IPO closing date is 11th January 2024. After this, investors will be updated about the allotment status on 12th January 2024.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 15th January 2024. The Jyoti CNC Automation IPO listing date is 16th January 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Jyoti CNC Automation Limited IPO Price Band  The IPO is a fresh issue. The Jyoti CNC Automation IPO price band has been set between ₹315 and ₹331 per share. Interested investors can choose a price within this band to apply for the IPO.  The Jyoti CNC Automation IPO listing price will be determined on 16th January 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  |Jyoti CNC Automation Limited IPO Lot size  The Jyoti CNC Automation IPO details have been declared. The Jyoti CNC Automation Ltd IPO lot size is set at 45 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Jyoti CNC Automation IPO issue size is approx ₹1000 crore.           How to pre-apply for the Jyoti CNC Automation Limited IPO?  You can pre-apply for the Jyoti CNC Automation 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:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Jyoti CNC Automation Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Jyoti CNC Automation Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Jyoti CNC Automation 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 Jyoti CNC Automation Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Jyoti CNC Automation Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Jyoti CNC Automation LimitedIPO 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 Jyoti CNC Automation Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Jyoti CNC Automation Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Jyoti CNC Automation Limited IPO  To apply for the Jyoti CNC Automation 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:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  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 Jyoti CNC Automation 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 Jyoti CNC Automation 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.