Gujarat-based computer numerical control machines manufacturer Jyoti CNC Automation will open its initial public offering (IPO) on January 9 for subscriptions.
It will be the first IPO of this new year on the main board of Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
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Jyoti CNC Automation IPO price band
The issue has a fixed price of ₹315-331 per share. The subscription will begin on January 9 and end on January 11. The anchor book will open for a day on January 8.
Anchor investors are qualified institutional buyers (QIB) who are offered shares just before the issue opens to the public for subscription. The investors can bid for a minimum of 45 equity shares and in multiples. Jyoti CNC Automation is planning to list its shares for the second time in nearly a decade. It had filed draft papers with Securities Exchange Board of India (SEBI) for the issue but later shelved the plan.
The IPO is a fresh issue of equity shares worth up to ₹1,000 crore. The CNC manufacturer has reserved 75 per cent of the IPO size for QIBs, 15 per cent for non-institutional investors and the remaining 10 per cent for retail individual investors.
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How will Jyoti CNC Automation utilise funds raised from IPO?
The company is planning to use the proceeds from the issue for funding, debt payment and long term working capital requirements of the company besides the general corporate purposes.
The company’s customers include giants like ISRO, BrahMos Aerospace Thiruvananthapuram Ltd, Turkish Aerospace, MBDA etc. As of September last year, the company had an order book of ₹3,315.33 crore. Equirus Capital, ICICI Securities, and SBI Capital Markets are the book running lead managers to the issue.
Jyoti CNC Automation IPO GMP
The shares of Jyoti CNC Automation are trading at a premium of ₹76 in the grey market. They are expected to be listed at a premium of 22 per cent above the issue price.
