Jyoti CNC Automation, a prominent CNC machine manufacturing company, has successfully raised over ₹448 crore from anchor investors a day before its initial public offering (IPO) on January 9. The company allocated 1,35,27,190 equity shares to anchor investors at ₹331 per share, signaling strong investor interest in the IPO. This article delves into the details of this funding round, the anchor investors involved, and the company’s plans for the IPO.
Anchor Investors Show Confidence in Jyoti CNC Automation
Jyoti CNC Automation has successfully raised ₹448 crore from anchor investors, including prominent names like Goldman Sachs, Nomura Funds, and Natixis International Funds. This strong response from anchor investors indicates their confidence in the company’s growth prospects and its ability to deliver returns in the long run.
The company allocated 1,35,27,190 equity shares to anchor investors at a price of ₹331 per share. This allocation was finalized in consultation with Equirus Capital Private Limited, ICICI Securities Limited, and SBI Capital Markets Limited, who acted as the Book Running Lead Managers to the IPO. The participation of reputed anchor investors further validates the attractiveness of Jyoti CNC Automation’s IPO.
Domestic Institutional Investors Join the Counter
Apart from international anchor investors, several domestic institutional investors also participated in the funding round. This includes ICICI Prudential Mutual Fund, Nippon Life India, Kotak Mahindra Trustee, and Axis Mutual Fund, among others. The participation of domestic institutional investors adds further credibility to the IPO and highlights the trust in the company’s growth potential.
Jyoti CNC Automation’s IPO Plans and Utilization of Funds
Jyoti CNC Automation aims to raise ₹1,000 crore through its IPO, with a price band ranging from ₹315 to ₹331 per share. The IPO exclusively consists of a fresh issue by the company. Out of the total net proceeds, ₹475 crore will be allocated for debt repayment, and ₹360 crore will be earmarked for long-term working capital requirements. The remaining funds will be utilized for general corporate purposes, showcasing the company’s strategic focus on strengthening its financial position and supporting future growth.
Strong Financial Performance and Future Prospects
Jyoti CNC Automation reported a profitable fiscal year 2023, with a profit of ₹15.06 crore compared to a loss of ₹48.3 crore in the previous year. Its revenue from operations also witnessed a significant increase of 24.5 percent, reaching ₹929.3 crore during the same period. In the first half of the financial year ending September 2024, the company achieved a net profit of ₹3.35 crore with a revenue of ₹509.8 crore. These positive financial indicators highlight Jyoti CNC Automation’s growth trajectory and future prospects.
What is Jyoti CNC Automation’s IPO price band?
- The IPO price band of Jyoti CNC Automation ranges from ₹315 to ₹331 per share.
How much did the company raise from anchor investors?
- Jyoti CNC Automation raised over ₹448 crore from anchor investors.
Which anchor investors participated in the funding round?
- Anchor investors included Goldman Sachs, Nomura Funds, Natixis International Funds, and other reputed names.
What are the key utilization areas for the IPO proceeds?
- Out of the net proceeds, ₹475 crore will be allocated for debt repayment, while ₹360 crore will be earmarked for long-term working capital requirements.
What were Jyoti CNC Automation’s financial performance highlights?
- The company achieved profitability in fiscal year 2023, reporting a profit of ₹15.06 crore. Its revenue from operations increased by 24.5 percent to reach ₹929.3 crore during the same period.