The Initial Public Offering of JNK India Limited was fully subscribed on the second day of bidding led by NII and Retail.
The issue received bids of 1,14,16,932 shares against the offered 1,10,83,278 equity shares, at a price band of ₹395-415, according to the data available on the stock exchanges. Overall the issue was subscribed 1.03 times.
Non-Institutional Investors Portion was subscribed 1.25 times, Retail Portion was subscribed 1.13 times, whereas Qualified Institutional Buyer Portion was subscribed 0.68 times. The issue kicked off for subscription on Tuesday, April 23, 2024, and will close on Thursday, April 25, 2024.
A day before the opening of the issue, JNK India Ltd had raised Rs 194.84 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were Goldman Sachs, Kotak MF, HDFC MF, Nippon MF, Mirae Asset fund, DSP, LIC MF, Bajaj Allianz Life Insurance and Aditya Birla SunLife Insurance.
Leading brokerages like Motilal Oswal, Anand Rathi, Nirmal Bang, SBI Securities, Reliance Securities, Arihant Capital, Choice Broking, InCred Equities, Swastika Investment, Ventura Securities, BP Wealth, IndsecSecurities, Sushil Finance, and SMIFS have given a “SUBSCRIBE” rating to the issue, highlighting the company’s established track record, diverse customer base, and strong position in the heating equipment market. JNK India’s demonstrated capabilities, robust financial performance, and order book visibility project it as well-positioned to benefit from industry tailwinds and global expansion.
JNK India’s focus on diverse offerings, strategic collaborations, and its ability to meet growing demand in the domestic and global markets. The company’s valuation metrics, such as P/E multiples and EV/EBITDA, are considered reasonable or at a discount compared to peers, further enhancing its investment appeal. Brokerages recommend a “Subscribe with a Long Term” rating, underlining JNK India’s niche product profile, strong growth prospects, and favourable industry dynamics in the heating equipment sector.
IIFL Securities Limited and ICICI Securities Limited are the book-running lead managers and Link Intime India Private Limited is the registrar of the issue.
Company Information
The Company has capabilities in thermal designing, engineering, manufacturing, supplying, installing, and commissioning heating equipment and caters to both domestic and overseas markets. (Source: F&S Report). Over the years the Company has diversified into flares and incinerator systems and has been developing capabilities in the renewable sector with green hydrogen. The Heating Equipment is required in process industries such as oil and gas refineries, petrochemicals, fertilizers, hydrogen and methanol plants, etc.
As of December 31, 2023, it has served 21 customers within India and 8 customers overseas. In India, it has 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.
The table below shows subscription data for all the categories of investors:
|
JNK India Limited Last updated on |
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|
Sr.No. |
Category |
No.of shares offered / reserved |
No. of shares bid for |
No. of times of total meant for the category |
|
1 |
Qualified Institutional Buyers (QIBs) |
30,75,283 |
20,81,916 |
0.68 |
|
1(a) |
Foreign Institutional Investors (FIIs) |
– |
– |
– |
|
1(b) |
Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) |
– |
– |
– |
|
1(c) |
Mutual Funds |
– |
20,72,268 |
– |
|
1(D) |
Others |
– |
9,648 |
– |
|
2 |
Non Institutional Investors(NIIS) |
24,02,399 |
30,00,528 |
1.25 |
|
2.1 |
Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) |
16,01,599 |
17,14,680 |
1.07 |
|
2.1(a) |
Corporates |
– |
14,760 |
– |
|
2.1(b) |
Individuals (Other than RIIs) |
– |
15,57,216 |
– |
|
2.1(c) |
Others |
– |
1,42,704 |
– |
|
2.2 |
Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto10 lakh rupees) |
8,00,800 |
12,85,848 |
1.61 |
|
2.2(a) |
Corporates |
– |
2,016 |
– |
|
2.2(b) |
Individuals (Other than RIIs) |
– |
11,61,396 |
– |
|
2.2(c) |
Others |
– |
1,22,436 |
– |
|
3 |
Retail Individual Investors (RIIs) |
56,05,596 |
63,34,488 |
1.13 |
|
3(a) |
Cut Off |
– |
56,29,068 |
– |
|
3(b) |
Price Bids |
– |
7,05,420 |
– |
|
4 |
Employee Reserved |
– |
– |
– |
|
4(a) |
Employee (Cut off) |
– |
– |
– |
|
4(b) |
Employee (Price) |
– |
– |
– |
|
5 |
Reservation PortionShareholder |
– |
– |
– |
|
5(a) |
RPS (Cut off) |
– |
– |
– |
|
5(b) |
RPS (Price) |
– |
– |
– |
|
|
Total |
1,10,83,278 |
1,14,16,932 |
1.03 |
