Jyoti CNC Automation IPO: Company Raises Rs 448 Crore from Anchor Investors

Jyoti CNC Automation, a leading manufacturer of Computer Numerical Control (CNC) machines, has successfully raised Rs 448 crore from anchor investors ahead of its initial public offering (IPO). The company allotted 1.35 crore equity shares to 37 funds at Rs 331 per share, the upper end of the price band. This marks the first public issue of 2024 on the main board of the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

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Participation of Prominent Investors

The anchor bidding process saw the participation of several prominent institutional investors, including Goldman Sachs, Nomura, Neuberger Berman Emerging Markets Equity Fund, The Master Trust Bank of Japan, Eastspring Investments India Fund, HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, ICICI Prudential Mutual Fund MF, Axis MF, Nippon India MF, and Edelweiss MF.

Details of the IPO

The IPO consists entirely of a fresh issue of equity shares worth up to Rs 1,000 crore. The price band for the public offering has been set at Rs 315-331 per share. The issue will open for public subscription on January 9 and close on January 11.

Utilization of Proceeds

The proceeds from the IPO will be primarily used for debt payment, funding the long-term working capital requirements of the company, and general corporate purposes.

About Jyoti CNC Automation

Jyoti CNC Automation is a leading player in the manufacturing of CNC machines. The company's customer base includes prestigious organizations such as ISRO, BrahMos Aerospace Thiruvananthapuram Ltd, Turkish Aerospace, MBDA, Uniparts India, Tata Advanced System, Tata Sikorsky Aerospace, Bharat Forge, Kalyani Technoforge, and Bosch Ltd. As of September 2023, the company had an impressive order book of Rs 3,315.33 crore.

Role of Book-Running Lead Managers

Equirus Capital, ICICI Securities, and SBI Capital Markets are acting as the book-running lead managers to the issue. These investment banks are responsible for managing the IPO process, including price discovery, allocation of shares, and ensuring regulatory compliance.

Listing on Stock Exchanges

The equity shares of Jyoti CNC Automation will be listed on both the BSE and the NSE, providing investors with an opportunity to trade in the company's shares.