JNK India IPO subscribed over 28 times on final day

The initial public offering (IPO) of JNK India was booked 28.05 times on the last day of the issue on Thursday. Of the 1,10,83,278 lakh shares available for subscription, the issue received consolidated share bids of over 31.10 crore. The category reserved for retail investors was booked the most at 4.01 times. The portion for qualified institutional buyers (QIBs) was subscribed 75.72 times while non-institutional investors' quota was booked 23.19 times.

The IPO comprised fresh equity of up to Rs 300 crore and an offer for sale (OFS) of up to Rs 84.2 lakh worth shares. Under the OFS, Goutam Rampelli, Dipak Kacharulal, JNK Heaters, Mascot Capital and Marketing, and Milind Doshi will offload shares.

About 50% of the offer was reserved for qualified institutional buyers, 35% for retail investors and the remaining 15% for non-institutional investors.

The net proceeds from the issue will be used to meet working capital requirements and other general corporate purposes.

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JNK India IPO Review
Analysts advised investors to subscribe the issue for long term but not expect any listing gains as the IPO was priced on the aggressive side.

"JNK India has an established track record with a diverse customer base with well-positioned to capture industry tailwinds through their demonstrated capabilities over time and diversifying product portfolio to cater to varied industries along with demonstrated financial performance with a robust order book, reflecting revenue visibility for last three fiscals," said Anand Rathi with a subscribe tag.

At the upper price band, the company is valued at P/E of 49.38x, EV/EBITDA 33.13x with a market cap of Rs 2,308 crore post issue.

JNK India IPO GMP
In the unlisted market, the company's shares are trading with a premium of Rs 80 per share.

JNK India IPO price band
The heating equipment company has fixed a price band of Rs 395-415 per share for its maiden public offer. Investors can bid for a minimum of 36 shares in one lot and in multiples thereafter.

Other details
JNK India has capabilities in thermal designing, engineering, manufacturing, supplying, installing and commissioning process fired heaters, reformers and cracking furnaces. The company is one of the well-recognized heater companies in India, having a market share of approximately 27% in the segment, in terms of new order booking in FY23.

For FY23, the company has clocked revenue from operations of Rs 407 crore and a profit of Rs 46.3 crore.

IIFL Securities and ICICI Securities are the book running lead managers to the issue, while Link InTime India is the registrar.

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