JNK India IPO opened on April 23 for subscription. The company wants to raise Rs 649.47 crore by offering both fresh issue and offer for sale. JNK India set the IPO price band between Rs 395 to Rs 415 per equity share. The issue’s last day for bidding is on April 25.
The company is offering 7.6 million shares through fresh issue to collect Rs 300 crore and 8.4 million shares by offer for sale to raise Rs 349.47 crore. A retail bid is of a minimum of 36 shares aggregating to Rs 14,940.
The expectations are that the allotment will be finalised on April 26 and the listing will take place on April 30. The shares of the company will be listed on both the bourses – NSE and BSE. On the first day of the issue, JNK India’s shares were fetching a premium of 6% to the issue price in the grey market. A grey market is a place where shares trade in an illegal way ahead of listing.
According to JNK India, the funds raised will be used to fund working capital requirements and other general corporate works.
About the company, JNK India is engaged in designing, manufacturing, supplying, installing, and commissioning process-fired heaters, reformers, and cracking furnaces. The company has a good client base and includes names such as Tata Projects, Indian Oil Corporation, and Rashtirya Chemicals & Fertilisers. It not just only provides its services in Maharashtra, Kerala, and other states of India but also in global markets like Nigeria and Mexico.
JNK has evolved as one of the key players to capitalize on the upcoming demand of Heating Equipment completing the value chain in heaters, reformers, and cracking furnaces over the past few years. The geographical expansion with a focus on high growth markets to capitalize on the industry tailwinds worldwide as there are a total of 53 refineries expected to be commissioned in 21 countries by CY30 as per F&S report and heating equipment accounts for 3.3% of the total capex estimated at $186 billion. “We expect the order book is expected to see improvement with new businesses and improved prospects for the oil-gas and fertilizer sectors. JNK has global parentage and skilled & experienced promoters holding respective backgrounds in their line of business are the added advantages. Hence, we recommend a “Subscribe” rating to the issue,” said Reliance Securities in an IPO note.
ICICI Securities and IIFL Securities were working as the book-running lead managers to the issue of JNK India. Link Intime India was the registrar for the issue.