Mumbai: Jyoti CNC Automation Limited’s Rs 1,000-crore initial public offering (IPO) achieved full subscription within a few hours of its opening on January 9.
The investor excitement extended to the grey market premium (GMP), witnessing a robust increase of Rs 96, equivalent to 29 percent, surpassing the issue price of Rs 331 on the first day of bidding. This surge in GMP suggests a potential listing price of Rs 426.
The grey market, an unofficial trading platform where shares are traded prior to allotment and up to the listing day, showcased this surge in GMP. Investors commonly monitor the grey market premium, known for its volatile nature, to gauge an early indication of the expected listing price.
The IPO, set to conclude on January 11, exclusively comprises a fresh offer of 3.02 crore shares, available within the price range of Rs 315-331 per share.
A day prior, the company successfully secured Rs 447.75 crore from various investors through the anchor book.
Distinguished investors, including Goldman Sachs, Nomura Funds, Natixis International Funds, Neuberger Berman Emerging Markets Equity Fund, Optimix Wholesale Global, The Master Trust Bank of Japan, Prudential Hong Kong, Carmignac Portfolio, Allianz Global Investors Fund, and Eastspring Investments India Fund, demonstrated their confidence in the Rajkot-based company by participating in the anchor book.
The company specializes in offering a diverse array of CNC machines, catering to industries such as aerospace, defense, and the medical sector. It holds the distinction of securing the third-largest market share, contributing significantly with around 10 percent market share in FY23.
The company manages operations across three manufacturing facilities—two situated in Gujarat, India, and one in Strasbourg, France. Collectively, these units boast an annual manufacturing capacity of 4,400 machines in India and 121 machines in France.
In the financial year 2022-2023, Jyoti CNC Automation marked a notable turnaround, reporting a profit of Rs 15.06 crore compared to a loss of Rs 48.3 crore in the preceding fiscal year. Additionally, the company experienced a robust revenue growth of 24.5 percent, reaching Rs 929.3 crore.
The anticipated commencement of trading for Jyoti CNC Automation shares is on January 16.