Jyoti CNC Automation files DRHP with SEBI to raise ₹1,000 crore via IPO
Jyoti CNC Automation Ltd has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI). The CNC machine manufacturer plans to raise ₹1,000 crore through its initial public offering (IPO). The company’s maiden public issue is entirely a fresh issue of equity shares with no offer for sale (OFS) component, according to the preliminary papers filed by the company.
The automation firm may consider a pre-IPO placement of equity shares worth ₹200 crore. If such placement is undertaken, the size of the fresh issue will be reduced.
The proceeds from the issue would be used for debt payment, funding long-term working capital requirements of the company, and general corporate purposes, according to the company’s statement. Jyoti CNC Automation is one of the leading manufacturers of computer numerical control (CNC) machines and has customers in varied sectors.
Jyoti CNC Automation sell their products in Romania, France, Poland, Belgium, Italy, and United Kingdom through Huron’s established dealer network and also have 29 sales and service centres (including their sales offices located within the precincts of one of their Manufacturing Facilities in Rajkot, Gujrat) spread across 12 states in India.
The company’s customers include ISRO, BrahMos Aerospace Thiruvananthapuram Ltd, Turkish Aerospace, Uniparts India Ltd, Tata Advances System Ltd, Tata Sikorsky Aerospace Ltd, Bharat Forge Ltd, Kalyani Technoforge Ltd, Rolex Rings Ltd and Bosch Ltd.
As of June 30, 2023, Jyoti CNC Automation had an order book of ₹3,143 crore. Equirus Capital, ICICI Securities, and SBI Capital Markets are the book-running lead managers to the issue. The equity shares of the company will be listed on BSE and NSE. In 2013, Jyoti CNC Automation had filed draft papers with SEBI to mop up funds through an IPO but later the company scrapped its plan.
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Updated: 02 Sep 2023, 06:54 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.