jyoti cnc automation ipo: Jyoti CNC Automation GMP falls sharply on last day despite strong response for IPO. Check subscription

The GMP of Jyoti CNC Automation fell sharply in the unlisted market on Thursday despite a robust response for the IPO. The issue was subscribed 12 times so far on the last day of the bidding process.

The company’s shares are trading with a premium of Rs 45, down from 75 the previous day. The IPO was priced in the range of Rs 315-331 apiece.

In the public offer, the retail portion was booked nearly 21 times, followed by NIIs at 19.31 times. The category reserved for QIBs was subscribed 5.45 times so far.

About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.

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Net proceeds will be used for repayment of some of its loans, funding for long-term working capital requirements and general corporate purposes.

Jyoti CNC Automation is one of the world’s leading manufacturers of metal cutting computer numerical control (CNC) machines with the third largest market share in India accounting for approximately 10% market share in FY23.With an expertise built over 2 decades and R&D capabilities, it delivers customised solutions to industries including aerospace and defense, auto and auto components, general engineering, EMS, dies and moulds, and others.

The company has a robust order book of Rs 3,300 crore, that will be executed over the span of next few years. Its other strengths include diversified product portfolio and customer base, strong global outreach and the ability to use technology to good effect to capture growing market opportunities.

The CNC machine market is likely to clock a 10% CAGR over CY23-27. This growth is expected to be propelled by the growth in the manufacturing industries due to factors such as industrial automation, and integration of computer-aided manufacturing.

The company posted a revenue and EBITDA CAGR of 27% and 75%, respectively over FY21-23. From a net loss of Rs 70 crore in FY21, it posted a profit of Rs 15 crore in FY23.

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