Jyoti CNC Automation Limited specializes in manufacturing CNC machines used in producing defense sector machinery, including aircraft and helicopters.
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Jyoti CNC Automation – About
Jyoti CNC Automation is renowned for producing Computer Numerical Control (CNC) machines that find extensive applications across the manufacturing sector, including aerospace, auto components, and general engineering. It has garnered a reputable clientele, counting prestigious organizations such as ISRO, BrahMos Aerospace, and Tata Advanced Systems among its customers. These clients rely on Jyoti CNC’s numerical machines to manufacture critical components.
Their product line includes CNC Vertical and Horizontal Machining Centers, essential in the manufacturing landscape. The company’s stature in India positions it as the third-largest player in this domain, with an approximate 10% market share. Internationally, it ranks among the top 12 companies globally, showcasing its significant presence in the industry.
Jyoti CNC Automation IPO details
| Event | Dates |
|---|---|
| IPO Subscription Period | January 9, 2024, to January 11, 2024 |
| Allotment Finalization Date | Friday, January 12, 2024 |
| Tentative Listing Date on BSE, NSE | Tuesday, January 16, 2024 |
| Price Band | ₹315 to ₹331 per share |
| Minimum Lot Size | 45 Shares |
| Minimum Investment for Retail Investors | ₹14,895 |
| Minimum Lot Size Investment for sNII | 14 lots (630 shares), amounting to ₹208,530 |
| Minimum Lot Size Investment for bNII | 68 lots (3,060 shares), amounting to ₹1,012,860 |
Jyoti CNC Automation – Company Expansion and International Operations
Jyoti CNC Automation operates across multiple locations, with two manufacturing plants in India, specifically in Rajkot, and one overseas plant in France. The international expansion was strategically motivated by the acquisition of Aerosmith, aiding in technological advancement. The company’s robust expansion strategy is fueled by technology acquisition and market penetration, effectively leveraging its prowess in the CNC machinery domain.
Jyoti CNC Automation – Market Position and Competitive Landscape
The CNC machinery market in India confronts stiff competition, predominantly reliant on imports from countries like Japan and Germany, comprising approximately 65% of the market. Jyoti CNC Automation’s concerted efforts aim to gradually reduce this reliance on imports, emphasizing the ‘Make in India’ initiative. Despite challenges posed by technology-intensive manufacturing, the company has steadily carved out a niche, securing a 10% market share over time.
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Jyoti CNC Automation IPO – Financial Performance and Future Profitability
Acknowledging the recent financial performance, the company faced losses in the preceding years, primarily attributed to challenges during the COVID-19 pandemic. However, their order book for the ongoing financial year showcases promising growth, with an order value of Rs. 3300 crores. The company anticipates a turnaround in profitability, marked by a shift from losses to a profit of Rs. 3 crores in the initial six months of the financial year 2024. Their order pipeline and research on product enhancement are expected to catalyze this positive trajectory.
Presently, the company operates at a capacity utilization of around 50%, effectively managing its operations for the next two years without immediate capex requirements. Future growth plans involve capitalizing on this capacity for the next two years, intending to maintain growth at around 50% during this period. Additionally, discussions with potential customers, primarily in the mobile manufacturing sector, hint at possible expansions and future investments.
Jyoti CNC Automation IPO – Utilization of IPO Funds and Financial Outlook
With an IPO worth Rs. 1000 crores, the company intends to channelize these funds strategically. A significant portion, approximately Rs. 475 crores, is earmarked for debt repayment, while Rs. 360 crores will reinforce the long-term working capital. A portion of the funds is also designated for reserves, facilitating expansion into electronic manufacturing. This calculated allocation aims to optimize the company’s financial health and fortify its position in the market.
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Disclaimer:
The above content provided regarding Jyoti CNC Automation IPO in this web post is for informational purposes only and should not be construed as financial advice. Readers are encouraged to consult with financial professionals before making any significant financial decisions.
