Tuesday, April 23, 2024

JNK India IPO subscribed 49% on Day 1

 The Initial Public Offering of JNK India Limited was subscribed 49% on the first day of bidding.

The issue received bids of 53,90,568 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 subscribed 67%, Retail Portion was subscribed 48%, whereas Non-Institutional Investors Portion was subscribed 25%. The issue kicked off for subscription on Tuesday, April 23, 2024 and will close on Thursday, April 25, 2024. 

A day prior to the opening of the issue, JNK India Ltd had raised Rs 194.84 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were Goldman Sachs, Kotak MF, HDFC MF, Nippon MF, Mirae Asset fund, DSP, LIC MF, Bajaj Allianz Life Insurance and Aditya Birla SunLife Insurance. 

Leading brokerages like Anand Rathi, Nirmal Bang, Reliance Securities, Arihant Capital, Choice Broking, InCred Equities, Swastika Invesmart, Ventura Securities, BP Wealth, and Stoxbox have given a “SUBSCRIBE” rating to the issue, highlighting the company's established track record, diverse customer base, and strong position in the heating equipment market. JNK India's demonstrated capabilities, robust financial performance, and order book visibility, projecting it as well-positioned to benefit from industry tailwinds and global expansion.

JNK India's focus on diverse offerings, strategic collaborations, and its ability to meet growing demand in the domestic and global markets. The company's valuation metrics, such as P/E multiples and EV/EBITDA, are considered reasonable or at a discount compared to peers, further enhancing its investment appeal. Brokerages recommend a "Subscribe with a Long Term" rating, underlining JNK India's niche product profile, strong growth prospects, and favorable industry dynamics in the heating equipment sector.

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

Company Information

The Company have 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 have been developing capabilities in the renewable sector with green hydrogen. The Heating Equipment are 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 8 customers overseas. In India, it has completed projects in, amongst others, Andhra Pradesh, Assam, Bihar, Karnataka, Kerala, Maharashtra, Tamil Nadu, West Bengal and globally have completed projects in Nigeria and Mexico. Further, it has ongoing projects in Gujarat, Odisha, Haryana, Rajasthan in India and globally in Oman, Algeria, and Lithuania. Further, it has successfully completed projects in far-reaching locations which included projects in India at Numaligarh, Assam; Kochi, Kerala; Barauni, Bihar; and overseas at Lagos, Nigeria. 

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


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