JNK India IPO opens April 23; seeks ₹650 crore via IPO
Upstox
2 min read • Updated: April 22, 2024, 11:29 AM
Summary
JNK India has set the price band of ₹395-415 per share. The IPO will be available to subscribe from 23 April to 25 April 2024. With the funds collected, the company aims to enhance working capital requirements.
JNK India Limited is a company that manufactures heating equipment and was established in 2010. In a recent announcement, the company has revealed its initial public offering (IPO) details. It aims to raise ₹650 crore with a combination of fresh issue of equity shares and an offer for sale (OFS) by existing shareholders.
JNK India, in the statement released on Thursday, announced a price band of ₹395-415 per share for the IPO. The IPO subscription window will be open from April 23 to April 25, 2024.
Anchor investors can subscribe to the IPO with a separate bidding window on 22 April 2024.
Structure of the IPO
The IPO of JNK India will consist of a fresh issue of equity shares worth up to ₹300 crore out of the total issue size of ₹650 crore. The remaining amount will be raised through offer for sale (OFS). In simpler terms, an OFS is a method where investors/promoters in public companies can sell their shares and reduce their holdings through the bidding platform in a transparent manner. The company plans to utilise these funds for its working capital requirements and for general corporate purposes.
The bidding process
Investors of this IPO can bid for a minimum of 36 equity shares and in multiples of 36 thereafter. The company has allocated half of the total issue size to its qualified institutional buyers (QIBs). 35% of the shares will be reserved for non-institutional investors (NIIs) while the remaining 15% will be reserved for retail investors.
JNK India's business and financial details
JNK India caters to domestic and international markets and is a prominent player in the design, installation, manufacturing, supply, engineering and commissioning of heating equipment. It also supplies heating equipment to industries like oil and gas refineries, fertilisers, petrochemicals, hydrogen and methanol plants.
JNK India has a robust order book of ₹845 crore as on 31 December 2023. The company has shown strong financial performance in recent years. The company’s consolidated revenue from operations saw a spike by 37.42% to ₹407.30 crore for the financial year 2023 compared to ₹296.40 crore in the previous year. Along with this, the net profit of JNK India witnessed a 29% increase to ₹46.36 crore compared to ₹35.98 crore in 2022.
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