Thursday, April 25, 2024

JNK India IPO subscribed 28 times on the Final Day

The Initial Public Offering of JNK India Limited was subscribed 28.07 times on the final day of bidding.

The issue received bids of 31,10,55,408 shares against the offered 1,10,83,278 equity shares, at a price band of ₹395-415, according to the data available on the stock exchanges. 

Qualified Institutional Buyer Portion was subscribed 75.72 times, Non-Institutional Investors Portion was subscribed 23.19 times, whereas Retail Portion was subscribed 4.01 times. 

IIFL Securities Limited and ICICI Securities Limited are the book-running lead managers and Link Intime India Private Limited is the registrar of the issue. 

Company Information

JNK India Limited is in the business of manufacturing process-fired heaters, reformers, and cracking furnaces (together, the “Heating Equipment”) that are required in process industries such as oil and gas refineries, petrochemicals, and fertilizer industries.

The Company has capabilities in thermal designing, engineering, manufacturing, supplying, installing, and commissioning heating equipment and caters to both domestic and overseas markets. (Source: F&S Report). Over the years the Company has diversified into flares and incinerator systems and has been developing capabilities in the renewable sector with green hydrogen. The Heating Equipment is required in process industries such as oil and gas refineries, petrochemicals, fertilizers, hydrogen and methanol plants, etc.

As of December 31, 2023, it has served 21 customers within India and 8 customers overseas. In India, it has completed projects in, amongst others, Andhra Pradesh, Assam, Bihar, Karnataka, Kerala, Maharashtra, Tamil Nadu, and West Bengal, and globally have completed projects in Nigeria and Mexico. Further, it has ongoing projects in Gujarat, Odisha, Haryana, and Rajasthan in India and globally in Oman, Algeria, and Lithuania. Further, it has completed projects in far-reaching locations which included projects in India at Numaligarh, Assam; Kochi, Kerala; Barauni, Bihar; and overseas at Lagos, Nigeria.

Some of the domestic customers include Indian Oil Corporation Limited, Tata Projects Limited, Rashtriya Chemicals & Fertilizers Limited, and Numaligarh Refinery Limited. Further, the Company has catered to overseas customers such as a leading engineering, procurement, and construction (“EPC”) company in Europe, a leading oil & gas exploration & production company in Oman, and a Middle East arm of European EPC company in oil and gas. Since its inception, the Company has been working closely with JNK Global Co. Ltd (formerly known as JNK Heaters Co. Ltd), a KOSDAQ-listed company. JNK Global Co. Ltd (formerly known as JNK Heaters Co. Ltd) is one of the corporate promoters of the Company, holding a 25.79% as of the date of the Red Herring Prospectus. 

The Company operates an in-house fabrication facility at the Mundra Special Economic Zone in Gujarat, spreads over approximately 20,243 square meters with an installed capacity of 5,000 metric tonnes of fabrication and modularization per annum. 

As of December 31, 2023, it had an order book of ₹ 8,450.27 million.

The table below shows subscription data for all the categories of investors: 

 


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