Jyoti CNC Automation IPO  - Complete Overview

In 1991, Jyoti CNC Automation Limited started with a vision to be a top technology hub. And with time their hard work paid off as they became a big multinational company. Initially they started with making gearboxes for machines, but soon they moved on to making advanced machines called CNC machines.

These machines can do various tasks like turning, milling, and machining with precision. Their customers include important organisations like ISRO and BrahMos Aerospace in India, as well as companies in Turkey and other places.

Company has a wide range of CNC machines, and in the last three years, they've sold over 7,200 machines to more than 3,000 customers worldwide. They've been doing this since 2004 and have delivered over 30,000 CNC machines globally.

They sell their machines in many countries like Romania, France, Poland, Belgium, Italy, and the UK through a network of dealers. They also have 29 sales and service centres in different parts of the world.

Company has three manufacturing facilities, two in India and one in France, where they design, develop, and make their machines. They decided to compete globally and export their machines all over the world.

Their main plant is in Rajkot, Gujarat, with various departments like a foundry, sheet metal shop, paint shop, and assembly lines. They also have a repair facility.

Company makes customised machines for different industries like aerospace, defence, automotive, general engineering, and more. They have technology centres in Rajkot and sales and service branches in major cities across India.

Main Products:

1. CNC Turning Centers and CNC Turn Mill Center.

2. CNC Vertical Machining Center.

3. CNC Horizontal Machine Center.

4. CNC Simultaneous 5-Axis Machining Centers.

(1)	(2)
(3)	(4)

 

 

Jyoti CNC Automation Limited IPO Overview

Jyoti CNC Automation Limited IPO date is slated to be open for subscription from January 9, 2024, to January 11, 2024. This BSE, NSE IPO follows a Book Built Issue IPO.

Jyoti CNC Automation Limited IPO price is Rs. 315 to Rs. 331 fixed at Rs. 51 per share. The upcoming BSE, NSE IPO will be listed on January 16, 2024.

The total issue size of this IPO amounts to Rs.1000 CR. The company has reserved 75% for institutional investors, 15% for non-institutional investors, and 10% for retail investors. 

 

 

Jyoti CNC Automation Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	9 January 2024
IPO Closing Date	11 January 2024
IPO Allotment Date	12 January 2024
Refund initiation	15 January 2024
IPO Listing Date	16 January 2024

 

Jyoti CNC Automation Limited IPO Details

IPO opening & closing date	9 January to 11 January 2024
Face value	Rs.2 per share
Issue Price	Rs. 315 to 331 per share
Lot Size	45 Shares
Price of 1 lot	Rs. 14,895
Total Issue Size	30,211,480  shares (aggregating up to Rs. 1,000.00 Cr)
Fresh issue	30,211,480  shares (aggregating up to Rs. 1,000.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

Detailed Video

 

Jyoti CNC Automation Limited IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	45 shares
Maximum Lot Investment (Retail)	13 lot	585 shares
Minimum Lot Investment (HNI)	14 lot	630 shares
Maximum Lot Investment (HNI)	67 lot	3015 shares

Jyoti CNC Automation Limited IPO Reservation

QIB Shares Offered	Maximum 75%
Retail Shares Offered	Minimum   10%
Other Shares Offered	Minimum 15%

 

Company Financial

In FY23, the company saw positive trends in Total Assets, Total Revenue, and Net worth. Profit after Tax (PAT) turned positive, and there was a slight decrease in Total Borrowings.

(Amount in Crore)

Period	Sep 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Total Assets	1,706.07	1,515.38	1,286.24
Total Revenue	510.53	952.60	750.06
PAT	3.35	15.06	-48.30
Net worth	205.63	36.23	-29.68
Reserve & Surplus	213.33	49.14	11.67
Total Borrowings	821.40	834.97	792.16

 

Revenue Distribution Segment -Wise        

In FY23, Auto & Auto Components dominated revenue, followed by Aerospace and Defence and General Engineering. Other segments had smaller contributions, indicating a shift from FY22.

(in % age)

Particulars	Sep 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Aerospace and Defence	37.22	20.32	7.52
Auto & Auto Components	34.68	46.68	39.47
General Engineering	18.47	19.58	27.88
Dies & Moulds	4.31	8.99	9.69
EMS	-	0.02	-
Others	5.33	4.41	15.45
Total	100.00	100.00	100.00

 

Revenue Distribution Geographical Wise   

In FY23, India led in revenue, followed by Europe and Asia (excluding India), with smaller contributions from North America and the rest of the world—a pattern consistent with FY22.

( in % age)

Particulars	Sep 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
India	83.90	87.22	82.59
Asia (excluding India)	1.43	7.05	11.34
Europe	14.60	4.91	4.97
North America	0.07	0.75	0.68
Rest of World	-	0.08	0.42
Total	100.00	100.00	100.00

 

Revenue By operations

In FY23, the company saw increased revenue compared to FY22, driven by product sales, services, and other operating income
(amount in Crores)

Particulars	Sep 30 FY 23	Mar 31  FY 23	Mar 31  FY 22
Sale of product	4,97.17	9,01.24	7,24.43
Sale of services	12.50	24.63	20.92
Other operating income	0.15	3.37	1.12
Total	5,09.82	9,29.25	7,46.48

 

 

 

The objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Repayment and/or prepayment of certain borrowings (full or partial).

• Funding for long-term working capital requirements.

• General corporate purposes.

 

Promoters and Management of Jyoti CNC Automation Limited IPO

1. Parakramsinh Ghanshyamsinh Jadeja.

2. Sahdevsinh Lalubha Jadeja.

3. Vikramsinh Raghuvirsinh Rana.

4. Jyoti International LLP.

Pre-issue Promoter Shareholding	72.66%
Post-issue Promoter Shareholding

Jyoti CNC Automation Limited IPO Lead Managers

• Equirus Capital Private Limited.

• ICICI Securities Limited.

• SBI Capital Markets Limited.

 

Peers of Jyoti CNC Automation Limited IPO

Jyoti CNC Automation Limited shows favorable pricing compared to peers, with a lower Price-to-Earnings ratio and competitive Earnings Per Share.

Name of the company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Jyoti CNC Automation Limited	2	324.5	1.02
Elgi Equipments Limited	1	44.30	11.72
Lakshmi Machine Works Limited	10	37.69	359.47
Triveni Turbine Limited	1	67.76	5.97
TD Power Systems Limited	2	46.66	6.23
Macpower CNC Machines Ltd	10	51.31	12.89

Evaluation

The IPO is priced within the range of Rs. 315 - Rs. 331 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 1.02 from the last year, the resulting P/E ratio is 324.5x.

- Taking into account the weighted EPS of Rs 1.38 for the last three years, the P/E ratio amounts to 240x.

    

Comparative Analysis of Listed Peers:

- Triveni Turbine Limited has a P/E ratio of 67.76x (the highest).

- Lakshmi Machine Works Limited has a P/E ratio of 37.69x (the lowest).

- The industry's average P/E is 49.55x.

 

As a result, the IPO price range, with a P/E ratio ranging from 324.5x to 240x, seems significantly overvalued compared to the industry average of 49.55x.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

1. One of the leading CNC machine manufacturing companies globally as well as in India with presence across the CNC metal cutting machinery value chain.

2. Well diversified global customer base spread across end-user industries.

3. Focus on technology and ability to deliver innovative solutions bolstered by dedicated R&D facilities.

4. Vertically integrated operations which enables customisation and production efficiencies.

5. Experienced Promoters supported by a strong management and execution team

 

IPO's Weaknesses

1.Credit Risk- The risk of financial loss if a counterparty fails to meet obligations, despite efforts to secure payments.
2.Liquidity Risk- The risk of being unable to meet cash and collateral obligations without unacceptable losses. The company actively manages liquidity to maintain optimal levels.

3.Foreign Exchange- The risk of fluctuations in fair value or cash flows due to changes in foreign exchange rates. The company mitigates this risk through strategic currency purchases.

4.Interest:- The risk of fluctuations in financial instrument value or cash flows due to changes in market interest rates, especially with floating-rate borrowings.

5.Commodity Price- The risk of impact from changes in raw material prices, with a focus on steel and other components.

 

 

 

IPO GMP Today

The latest GMP of Jyoti CNC Automation Limited IPO is Rs. 38.

 

Conclusion

Jyoti CNC Automation Limited, a global CNC machine manufacturing company, is set to launch its IPO. With a history dating back to 1991, the company has evolved into a major player in the industry, serving diverse sectors such as aerospace, defence, automotive, and general engineering. Their advanced CNC machines have garnered recognition from prestigious organisations like ISRO and BrahMos Aerospace.

In recent years, Jyoti CNC Automation Limited has demonstrated positive financial trends, showing growth in Total Assets, Total Revenue, and Net worth. The IPO, scheduled from January 9 to January 11, 2024, aims to raise Rs. 1000 Crores, with plans to utilise the net proceeds for debt repayment, working capital, and general corporate purposes.

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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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