Ahead of its IPO, Jyoti CNC Automation Raises ₹448 Crore from Anchor Investors

Jyoti CNC Automation
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One day before its initial public offering (IPO) on January 9, CNC machine manufacturer Jyoti CNC Automation secured over ₹448 crore from anchor investors on January 8.

Anchor investors received 1,35,27,190 equity shares from the company at a price of ₹331 per share.

“The allocation of 1,35,27,190 equity shares to anchor investors at the anchor investor allocation price of Rs. 331 per equity share (including share premium of Rs. 329 per equity share) has been finalized by the IPO Committee of the Company at its meeting held on January 8, 2024, in consultation with the Equirus Capital Private Limited, ICICI Securities Limited, and SBI Capital Markets Limited (“Book Running Lead Managers”) to the Issue,” the company stated in its exchange filing.

In addition to Goldman Sachs, the Rajkot-based company received investments from anchor investors such as Nomura Funds, Prudential Hong Kong, Optimix Wholesale Global, The Master Trust Bank of Japan, Carmignac Portfolio, Allianz Global Investors Fund, and Eastspring Investments India Fund.

The following domestic institutional investors took part in the counter: Edelweiss Trusteeship, HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, Nippon Life India, Axis Mutual Fund, Manulife Global Fund, Canara Robeco Mutual Fund, Invesco Mutual Fund, Bandhan Mutual Fund, and Kotak Mahindra Trustee.

“Out of the total allocation of 1,35,27,190 equity shares to the anchor investors, 52,90,650 equity shares were allocated to 9 domestic mutual funds, which have applied through a total of 21 schemes,” the business continued.

The maker of computer numerical control (CNC) machines for metal cutting hopes to raise ₹1,000 crore at the top of the pricing band, which is between ₹315 and ₹331 per share, through its initial public offering (IPO).

This IPO only includes the company’s most recent offering. ₹475 crore of the net proceeds from the new offer will go toward paying off debt, and another ₹360 crore will go toward meeting long-term working capital needs. The net fresh issue’s remaining proceeds will be used for general company purposes.

Jyoti CNC Automation turned a profit in the fiscal year 2023, earning ₹15.06 crore as opposed to ₹48.3 crore in the year before. The operations revenue climbed by 24.5 percent to ₹929.3 crore in the same time. During the first half of the fiscal year that concludes in September 2024, revenue totaled ₹509.8 crore, and the net profit was ₹3.35 crore.

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