Jay Bee Laminations IPO: Review, Valuation, Date & GMP

Jay Bee Laminations IPO-Complete Overview

Jay Bee Laminations IPO an SME IPO is a book-built issue of Rs.88.96 crore by Jay Bee Laminations Ltd. which was founded in 1988 and is engaged in the supply of cold-rolled non-grain-oriented (CRNGO) and cold-rolled grain-oriented silicon steel (CRGO) cores.

The company produces and provides a variety of goods for the power industry, such as electrical laminations, slotted coils, and assembled cores in cold-rolled silicon steel that is grain-oriented and cold-rolled non-grain-oriented steel that is used in transformers, UPSs, and inverters.

The company's 10,878 square meter production facilities are outfitted with all of its specialized machinery for electrical steel core cutting, slitting, assembly, and testing (CRGO and CRNGO). In addition, the company has its own tooling department for honing blades and a laboratory for testing finished goods and raw materials.

The existing facilities have everything needed to support clients that produce transformers up to 220 kV class. As of December 31, 2023, the business has utilized 84% of its installed capacity.

Customers of Jay Bee Laminations Ltd. include companies that make power and distribution transformers, as well as transformers with voltages between 11 and 220 kV.

This new SME IPO is to be launched on 27 August 2024, and its ‘initial public offering’ will end on 29 August 2024.

Jay Bee Laminations IPO Overview

The Rs.88.96 crore Jay Bee Laminations Ltd. IPO consists of a combination of a fresh issue of 45.7 lac Shares, aggregating to Rs.66.72 crore, and an offer for sale (OFS) of 15.23 lac Shares totaling up to Rs.22.24 out of which 35% are allowed to retail investors, 50% to institutional investors, and 15% to non-institutional investors.

This SME IPO date is from August 27-August 29, 2024. The expected IPO listing will take place on Tuesday, 3 September 2024, on NSE and SME. Jay Bee Laminations IPO price band is Rs.138 to Rs.146 for each Share.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue increased by 23% and PAT increased by 42% during FYs ending 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the period that concluded on 31 March 2024.

• The total assets of the company are Rs.13,091.32 lac.

• The total revenue of the company is Rs.30,349.56 lac.

• The net worth of the company is Rs.6,281.44 lac.

• The company’s EBITDA is Rs.3,269.60 lac.
  
  

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Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

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Product-wise Revenue Breakdown

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Sector-wise Revenue Breakdown

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Zonal-wise Revenue Breakdown of Sales

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Industry-wise Revenue Breakdown of Sales

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Geography-wise Breakdown of Revenue From Operations

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The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To fulfill working capital needs.

• General corporate purposes.

Peers of Jay Bee Laminations Ltd.

Evaluation

The IPO price is Rs.138 to Rs.146 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.10.75 from the last year, the resulting P/E ratio is 13.58x.

Considering the weighted EPS of Rs.8.43 for the last three years, the P/E ratio is 17.31x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 67x.

In simple words, the P/E ratio of Jay Bee Laminations IPO (13.58x), compared with the industry’s average P/E of 67x, has an undervaluation. Hence the price of the Share seems fairly priced for the investors when considered based on the average P/E ratio of the industry.. 

IPO's Strengths 

• Track record in the sector.

• Strong operational and financial success.

• Long-term relationships with suppliers.

• Long-term relationships with customers.

• Skilled marketers backed by a capable administration and implementation group.

• Ensured Quality.
  
  

IPO’s Weaknesses

• It expects more expenses going forward, and it has a history of net loss in the Fiscal Year 2021. It does not risk consistently attaining profitability or positive cash flow in the future if the company is unable to grow its revenue at a rate that keeps up with its initiatives, investments, and other costs.

• The northern and southern regions account for a sizable share of its domestic sales (including supply to SEZ), therefore any unfavorable developments in this market could harm the company.

• At present, the company runs two production plants in Noida and Greater Noida. The business operations and financial performance of the company could be significantly and negatively impacted by any slowdown or disruption in its manufacturing operations in any of the manufacturing sites.

• The company had a negative cash flow from its investing, and financing activities in the past three years, sustained negative cash flow could impact its growth and business.

Jay Bee Laminations IPO GMP Today

Its IPO GMP today is Rs.85 as of 24 August 2024. With a price band of Rs.146, the Jay Bee Laminations IPO's listing price (estimated) is Rs.231.

IPO Timetable (Tentative)

The IPO date is from August 27 to August 29, 2024, with allotment on August 30, refund initiation on September 02, and listing on September 03, 2024.

 

Jay Bee Laminations IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 27, 2024, close on August 29, 2024, and offer a total issue size of 6,093,000 Shares (aggregating up to Rs.88.96 Cr) comprising a fresh issue size of 4,570,000 Shares (totaling up to Rs.66.72 Cr) and OFS of 1,523,000 Shares (aggregating up to Rs.22.24 Cr).

Jay Bee Laminations IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.1,46000; while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.2,92,000.

 

Jay Bee Laminations IPO Reservation

Promoters And Management of Jay Bee Laminations Ltd.

• Mr. Munish Kumar Aggarwal.

• Mr. Mudit Aggarwal.

• Mrs. Sunita Aggarwal.

IPO Lead Managers

• Swaraj Shares And Securities Pvt Ltd.
  
  

Dividend Policy

The company has not paid dividends since its inception.

Conclusion

The company has experienced negative cash flow in financing and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the upcoming IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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