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JNK India IPO is a book-built issue. The issue comprises of fresh issue of Rs 300.00 crore and an offer for sale of 0.84 crore shares.
The IPO opens for subscription on April 23, 2024, and closes on April 25, 2024. The price band for the IPO is set at ₹395 to ₹415 per share and the minimum lot size for an application is 36 Shares.
Company Summary
This company is in the business of manufacturing process-fired heaters, reformers, and cracking furnaces (together, the “Heating Equipment”) that are required in process industries such as oil and gas refineries, petrochemical, and fertilizer industries.
They have capabilities in thermal designing, engineering, manufacturing, supplying, installing, and commissioning Heating Equipment and cater to both domestic and overseas markets.
In India, they have completed projects in, amongst others, Andhra Pradesh, Assam, Bihar, Karnataka, Kerala, Maharashtra, Tamil Nadu, and West Bengal, and globally have completed projects in Nigeria and Mexico.
Some of their domestic Customers include Indian Oil Corporation Limited, Tata Projects Limited, Rashtriya Chemicals & Fertilizers Limited, and Numaligarh Refinery Limited.
All products in JNK India Limited are manufactured as per the requirements of the customer and following the applicable standards. The manufacturing is done at the in-house manufacturing facilities and/or third-party vendors. One of the manufacturing facilities is located in the Multi-Product Special Economic Zone in Mundra, Gujarat, where production is exclusively for export. It is spread over an area of about 20,243 square meters with an installed capacity of 5,000 metric tonnes for manufacturing and modularization per annum.
Company Strengths
They have been accorded incentives by their Customers for early completion of projects in India and overseas. Further, in March 2022, they were recognized for their safety compliance by one of the private refinery companies of a multinational industrial conglomerate from Nigeria and were awarded a certificate of appreciation for ‘Safety Compliance and Campaign Performance’.
As of December 31, 2023, they have served 21 Customers in India and 8 Customers overseas. Further, 7 out of the 12 oil refining companies in India, are their Customers.
They have supplied or are in the process of supplying Heating Equipment to 11 of the 24 operating oil refineries across India. As of March 31, 2023, the company had 192 permanent employees.
For Fiscals 2021 to 2023, their revenue from operations, EBITDA, and profit after tax had grown at a CAGR of 71.97%, 68.09%, and 67.75%, respectively, demonstrating growth in their financial performance in recent years.
Company Financials
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 453.39 | 337.78 | 268.32 | 125.12 |
| Revenue | 256.76 | 411.55 | 297.14 | 138.45 |
| Profit After Tax | 46.21 | 46.36 | 35.98 | 16.48 |
| Net Worth | 168.56 | 122.17 | 72.18 | 36.82 |
| Reserves and Surplus | 158.88 | 112.57 | 62.58 | 36.22 |
| Total Borrowing | 56.73 | 33.76 | 5.99 | 8.95 |
Amount in ₹ Crore | ||||
Objectives of the IPO
The Company proposes to utilize the Net Proceeds towards funding the following objects,
- Funding working capital requirements
- General corporate purposes
Promoters of the Company
Arvind Kamath, Goutam Rampelli, Dipak Kacharulal Bharuka, Mascot Capital and JNK Global are the Promoters of the Company.
IPO details
| IPO Date | April 23, 2024 to April 25, 2024 |
| Listing Date | Tuesday, April 30, 2024 |
| Face Value | ₹2 per share |
| Price Band | ₹395 to ₹415 per share |
| Lot Size | 36 Shares |
| Fresh Issue | Aggregating up to ₹300.00 Cr |
| Offer for Sale | 8,421,052 shares of ₹2 as face value |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 36 | ₹14,940 |
| Retail (Max) | 13 | 468 | ₹194,220 |
| Small-HNI(Min) | 14 | 504 | ₹209,160 |
| small-HNI(Max) | 66 | 2,376 | ₹986,040 |
| Large-HNI (Min) | 67 | 2,412 | ₹1,000,980 |
Allotment Schedule
| Basis of Allotment | Friday, April 26, 2024 |
| Initiation of Refunds | Monday, April 29, 2024 |
| The credit of Shares to Demat | Monday, April 29, 2024 |
| Listing Date | Tuesday, April 30, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on April 25, 2024 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
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