Shares of Jyoti CNC Automation opened at Rs 370 on the National Stock Exchange, a premium of nearly 12% from its issue price of Rs 331. The shares of the company rose as much as Rs 424.95, around the upper band limit of Rs 444.
The shares of the company were trading at a premium in the grey market before the listing. In the grey market, the shares were trading at Rs 369.
The company’s initial public offering for subscription opened on January 09 at a price band of Rs315-331 per share and closed on 11 January. The issue worth Rs1,000 crore was a completely fresh issue.
For the qualified institutional investors, around 75% of the offer was reserved. While 15% for high net-worth individuals and 10% for the retail investors. The company also reserved shares worth Rs 5 crore for the employees.
Jyoti CNC Automation is one of the world’s leading manufacturers of metal-cutting computer numerical control machines, with the third largest market share in India, approximately 10% in FY23. The company has a diverse portfolio of CNC machines built over 2 decades of presence.
On the financial front, the company reported a consolidated revenue of Rs929 crore in FY23, up 24% from the same period a year ago.
“While Jyoti CNC’s strong brand presence and robust market share are undeniable, the financial concerns and hefty valuation necessitate a cautious approach,” said Shivani Nyati, head of wealth at Swastika Investmart.
“Jyoti CNC’s listing debut was positive but overshadowed by concerns. Thus we recommend investors book profit and exit their position; however, those who still want to hold it should keep a stop loss at around issue price,” Nyati added.
