Stellar Debut: JNK India Lists at 50% Premium at Rs 621 per share on NSE

JNK India specialises in the design, production, delivery, installation, and initiation of process-fired heaters, reformers, and cracking furnaces, which debuted on the Indian stock market today.

The stock of JNK India settled at Rs 621 per share on the NSE, representing an impressive 49.64% premium over the final issue price of Rs 415 per share. Additionally, on the BSE, the company’s shares opened at Rs 620 per share, indicating a gain of 49.40%. The market capitalisation on the BSE stands at around Rs 3,448 crore.

IPO Proceeds

The company intends to utilise the net proceeds from the fresh issue for multiple purposes, including fulfilling its working capital requirements. Additionally, a portion of the proceeds will be allocated towards covering general corporate expenses.

Business Overview

Established in 2010, JNK India Limited specializes in the design, production, delivery, installation, and initiation of process-fired heaters, reformers, and cracking furnaces. By March 31, 2023, the company had catered to more than 17 domestic clients in India and seven international clients. Notable among its domestic clientele are Indian Oil Corporation Limited, Tata Projects Limited, Rashtriya Chemicals & Fertilizers Limited, and Numaligarh Refinery Limited.

Subscription details

On April 25, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 28.46 times. The public issue received great interest, with the retail category being subscribed 4.20 times, while the QIB and NII categories reached subscription rates of 74.40 and 23.80 times, respectively.

The IPO price band was Rs 395 and Rs 415, with a face value of Rs 10 per share and a lot size of 36 shares. The total size of the company’s IPO was Rs 649.47 crore, and the final share issue price was fixed at Rs 415 each.

Conclusion

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 50% on the listing day itself and can choose to book the profit generated or watch for at least the first 15 minutes and then set a stop-loss at the day’s low price. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

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 and is subject to changes. Please consult an expert before making related decisions.