JNK India IPO opens for subscription today: Five key things you should know

The ₹650-crore initial public offering (IPO) of heating equipment maker JNK India Ltd is opening for subscription on Tuesday, April 23.

The mainline IPO was in news on Monday after it raised almost ₹195 crore from anchor investors ahead of its launch. In a circular issued on exchanges, JNK India informed that it has allotted 46.95 lakh equity shares to 19 funds at ₹415 apiece.

If you are also planning to invest in the JNK India IPO, here are five important details that you should not miss:

JNK India IPO offer size

The JNK India IPO is a 100% book-built issue of ₹649.47 crore. The issue is a combination of fresh issue of 76 lakh shares of face value of ₹2 each aggregating to ₹300 crore and an offer-for-sale (OFS) of 84 lakh shares aggregating to ₹349.47 crore.

Promoters Goutam Rampelli, Dipak Kacharulal Bharuka, JNK Heaters Co Ltd, Mascot Capital and Marketing Pvt. Ltd, and a shareholder named Milind Joshi, will offload their stake in the company through offers for sale.

The company has reserved 50% of the net issue for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors (NIIs).

IIFL Securities Ltd and ICICI Securities Ltd are the book-running lead managers of the JNK India IPO, while Link Intime India Pvt Ltd is the registrar for the issue.

JNK India IPO price band and lot size

JNK India IPO price band has been fixed at ₹395-415 per share. The lot size is 36 shares, which means investors can bid for a minimum of 36 equity shares and in multiples of 36 thereafter.

This translates into a minimum application amount of ₹14,940 for retail investors.

JNK India IPO important dates

The JNK India IPO opens for subscription on Tuesday, April 23, and closes on Thursday, April 25. The share allotment is expected to be finalised on April 26. Successful bidders, who will be allotted shares, can expect them to be credited to their demat accounts by April 29.

The JNK India stock is likely to list on both BSE and the National Stock Exchange of India (NSE) on April 30.

To read more and apply for JNK India IPO, click here

Purpose of the JNK India IPO

JNK India has said that it intends to use the net proceeds from the fresh issue to finance the working capital requirements and general corporate purposes.

About JNK India

JNK India is engaged in the business of thermal designing, engineering, manufacturing, supplying, installing, and commissioning heating equipment. It caters to both domestic and overseas markets.

As of March 2023, the company had served 17 customers in India and seven customers overseas. The company claims that seven of the 12 oil refining companies in India are its customers and it has supplied, or is in the process of supplying, heating equipment to 11 of the 24 operating oil refineries across India.

JNK India’s consolidated revenue from operations had posted an increase of 37.4% to ₹407.30 crore for financial year 2023 compared to ₹296.40 crore in FY22. Net profit had jumped 29% to ₹46.36 crore in FY23 compared to ₹35.98 crore in FY22. As on December 31, 2023, the company’s order book stood at ₹845 crore.

To know more about IPOs listing, schedule and upcoming IPOs, click here