JNK India Ltd IPO: Review, Valuation, Opening Date & GMP

JNK India Limited IPO  - Complete Overview

Established in 2010, JNK India Limited specializes in manufacturing process-fired heaters, reformers, and cracking furnaces essential for industries such as oil and gas refineries, petrochemicals, and fertilizers. 

The company offers a comprehensive range of services including thermal design, engineering, manufacturing, supply, installation, and commissioning of heating equipment, catering to both domestic and international markets.

JNK India Limited has successfully completed projects across various states in India including Andhra Pradesh, Assam, Bihar, Karnataka, Kerala, Maharashtra, Tamil Nadu, and West Bengal. Globally, the company has undertaken projects in Nigeria and Mexico, with ongoing projects in Gujarat, Odisha, Haryana, and Rajasthan in India, as well as in Oman, Algeria, and Lithuania.

The company has executed 17 projects for JNK Global, serving customers in overseas markets. Notably, JNK Global has installed process-fired heaters for its client in Lagos, Nigeria, home to one of the largest refineries globally, the Dangote Refinery, boasting a capacity of 32.7 million metric tonnes per annum.

Situated at a multi-product special economic zone in Mundra, Gujarat, one of the company's premises is dedicated to fabrication for export purposes, spanning 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, the company's total revenue stands at Rs. 256.76 crore.

 

JNK India Limited IPO Overview

JNK India Limited IPO date is slated to be open for subscription from April 23, 2024, to April 25, 2024. This NSE, BSE IPO follows a Book Built Issue IPO.

JNK India Limited IPO price is fixed in the range of Rs.395 to Rs.415 per share.

The total issue size of this IPO is not yet disclosed. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non-institutional investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, JNK India Limited has seen growth in total assets, net worth, and total revenue. The profit after tax and total borrowing has also increased.

Amount in Crores)

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	453.39	337.78	268.32
Total Revenue	256.76	411.55	297.14
PAT	46.21	46.36	35.98
Net worth	168.56	122.17	72.18
Reserve & Surplus	158.88	112.57	62.58
Total Borrowings	56.73	33.76	5.99

Operation-wise Revenue Beak up

(Amount in Million)

Industry	December 31, 2023	Fiscal 2023	Fiscal 2022
Oil and gas	2,532.56	3,146.51	2,828.72
Petrochemical	0.96	658.72	56.76
Fertilizers	-	8.32	1.28
Others	0.41	259.47	77.20
Total	2,533.93	4,032.02	2,963.96

 

The Objective of the Issue

The Company proposes to utilize the Net Proceeds to fund the following objects 

1. Funding working capital requirements

2. General corporate purposes

Peers of JNK India Limited IPO 

Name of the Company	Face Value (Rs.)	EPS (Rs.)	P/E Ratio
JNK India Limited	2.00	9.51	-
Thermax Limited	2.00	39.98	112.90
Bharat Heavy Electricals Limited	2.00	1.37	186.02

 

Evaluation

The IPO price is not yet disclosed.

 

IPO's Strengths 

• Demonstrating a proven track record with a diverse clientele.

• Strategically positioned to seize opportunities driven by industry trends, leveraging its established capabilities.

• Expanding its product range to serve a wide array of industries.

• Exhibiting strong financial performance, as evidenced by a robust Order Book providing revenue clarity for the past three fiscal periods.

• Led by a competent and experienced team of promoters and management, supported by a dedicated workforce.

IPO Weaknesses 

• Proceeds from the Offer for Sale will not accumulate to the Company.

• The Company is bound by stringent performance criteria and must adhere to predetermined timelines; failure to meet these obligations could have adverse consequences.

• A majority of the Company's Directors lack prior directorial experience.

• The Company operates in a competitive industry, and its ability to compete effectively is crucial for its business sustainability.

• Foreign exchange fluctuations pose a potential risk to the Company's operational results.

• A substantial portion of the Company's revenue is generated from contracts with Contracting Customers; failure to secure new contracts may impact operational revenue.

• The Company relies heavily on revenue from its Corporate Promoter, JNK Global.
  
  

IPO GMP Today

The Latest GMP of JNK India Limited is Rs.135.

JNK India Limited IPO timetable (Tentative)

JNK India Limited IPO is scheduled from April 23 to April 25, 2024, with allotment on April 26, refund initiation on April 29, and listing on April 30, 2024.

Events	Date
IPO Opening Date	April 23, 2024
IPO Closing Date	April 25, 2024
IPO Allotment Date	April 26, 2024
Refund initiation	April 29, 2024
IPO Listing Date	April 30, 2024

JNK India Limited IPO Details 

JNK India Limited IPO, with a face value of Rs.2 per share, opens on April 23 and closes on April 25, 2024, and will be listed on NSE, BSE.

IPO opening & closing date	April 23, 2024 to April 25, 2024
Face value	Rs. 2 per share
Issue Price	Rs. 395 to Rs.415 per share
Lot Size	36 Shares
Price of 1 lot	14,940
Issue Size	-
Offer for sale	8,421,052 shares of ₹2 (aggregating up to ₹[.] Cr)
Fresh issue	[.] shares (aggregating up to ₹300.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

JNK India Limited IPO Lot Details 

For JNK India Limited IPO, the retail investor has to invest a minimum of 1 lot (36 shares) at Rs.14,940 and a maximum of 13 lots (468 shares) at Rs. 194,220 while for HNI investors, the minimum investment is 14 lots (504 shares) at Rs.209,160.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	13 lot
Minimum Lot Investment (HNI)	14 lot
Maximum Lot Investment (HNI)	66 lot

JNK India Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

Promoters and Management of JNK India Limited

• Mascot Capital and Marketing Pvt. Ltd.

• JNK Heaters Co. Ltd

• Arvind Kamath

• Gaoutam Rampelli

• Dipak Kacharulal Bharuka 

Pre-issue Promoter shareholding	94.56%
Post-issue Promoter shareholding

 

JNK India Limited IPO Lead Managers

• Iifl Securities Ltd

• ICICI Securities Limited 
  
  

Dividend Policy

The company distributed dividends of Rs. 10 per equity share for the fiscal years 2021 and 2022, followed by Rs. 1.50 per equity share for the fiscal year 2023. As of December 31, 2023, the dividend per equity share stood at Rs. 0.30.

Conclusion

The upcoming IPO offers a promising opportunity for investors, with the company demonstrating strong revenue growth. After a thorough evaluation of all factors, investors are advised to allocate their funds to get optimal outcomes.

 

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.

 

 

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