JNK India Limited IPO Sees 0.50x Subscription on Opening Day

On the first day of the bidding process, Tuesday, April 23, 2024, the Initial Public Offer (IPO) of JNK India Limited was subscribed 0.50x. The retail portion was subscribed to 0.50x, while 0.66x in Qualified Institutional Buyers (QIB) and 0.26x in the Non-Institutional Investors (NII) category.

On April 23, 2024, the shares of JNK India Limited were commanding a premium of ₹25 in the grey or unlisted market.

JNK India IPO opened for subscription on Tuesday, April 23, 2024, and will close on Thursday, April 25, 2024.

The JNK India IPO comprises both a fresh issue and an Offer For Sale (OFS) of 16,015,988 shares, aggregating up to ₹649.47 crore. The price band of the IPO has been fixed in the range of ₹395 to ₹415 per share. The face value is set at ₹2 per share. The lot size is 36 equity shares, where the minimum investment (retail) is ₹14,940.

The objectives of the JNK India Limited IPO are to fund the following:

• Working capital requirements and
• General corporate purposes

At its meeting held on April 22, 2024, the IPO committee of the company’s board consulted IIFL Securities Limited and ICICI Securities Limited and finalised the allocation of 46,94,989 equity shares to Anchor Investors at an Anchor Investor allocation price of ₹415 per share.

About JNK India Ltd

JNK India Ltd is involved in the manufacturing of process-fired heaters, reformers, and cracking furnaces that are required in process industries, including petrochemicals, oil and gas refineries, and fertilisers. As of December 31, 2023, the company has served 21 customers in India and 8 customers overseas. A few of its domestic customers include Tata Projects Limited, Indian Oil Corporation Limited, Numaligarh Refinery Limited and Rashtriya Chemicals & Fertilizers Limited.

During FY 2023, the company’s revenue from operations was ₹4,073.02 million, which is approximately 37.41% higher than the revenue from operations in FY 2022 was ₹2,963.96 million. In FY 2023, the company’s profit after tax touched ₹463.62 million, which was approximately 28.85% more than ₹359.83 million in FY 2022.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet