Jyoti CNC Automation IPO Day 2: GMP steady, check review, other key details. Should you subscribe?
Also Read: Jyoti CNC Automation IPO: Issue fully booked on day 1, retail portion subscribed 8.28x The product line consists of multi-tasking machines, simultaneous 3-axis and simultaneous 5-axis CNC machining centres, CNC turning centres, CNC turning-milling centres, CNC vertical machining centres (VMCs), and CNC horizontal machining centres (HMCs). Also Read: Jyoti CNC Automation IPO: GMP, subscription status, review, other details.
Apply or not? The company's promoters are Vikramsinh Raghuvirsinh Rana, Parakramsinh Ghanshyamsinh Jadeja, Sahdevsinh Lalubha Jadeja, and Jyoti International LLP. Between the fiscal year ending on March 31, 2023, and March 31, 2022, Jyoti CNC Automation witnessed a 27% increase in revenue and a 131.18% increase in profit after tax (PAT).
The company's listed peers are Elgi Equipments Ltd (with a P/E of 44.30), Lakshmi Machine Works Ltd (with a P/E of 37.69), Triveni Turbine Ltd (with a P/E of 67.76), TD Power Systems Ltd (with a P/E of 46.66), and Macpower CNC Machines Ltd (with a P/E of 51.31), as per Red Herring Prospectus (RHP). Also Read: Jyoti CNC Automation IPO: 10 key risks investors should know before subscribing to the issue Jyoti CNC IPO, which is worth ₹1,000 crore, is completely a fresh issue; there is no offer for sale (OFS) component, according to RHP.
The company plans to use the net proceeds from the fresh offering for the following purposes: to finance the company's long-term working capital needs; to pay back and/or prepay, in full or in part, some of the borrowings that the company has taken out; and for general corporate purposes. “In addition, our company expects to receive the benefits of listing of equity shares on the stock exchanges including enhancing our company’s
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