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JYOTI CNC AUTOMATION IPO

IPO Details

-
-
45 Shares
₹ 14,895
₹ 315 - 331
₹ Up to 1000 Cr

Issue timeline

  • -
  • 12-Jan-2024
  • 15-Jan-2024
  • 15-Jan-2024
  • 16-Jan-2024

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

- One of the world’s leading manufacturers of CNC(Computer Numerical Control) machines
-In Fiscal 2022, they were the second largest CNC machine manufacturer in India and accounted for approximately 8% of the market share
- Recognised as ‘Best Brand in the Metal Cutting Industry’ by Economic Times for 5 consecutive years from 2018 to 2022
- Delivers to customers across diverse set of industries including aerospace and defence, auto and auto components, general engineering, EMS, dies and moulds, and others

Strengths & Risks

Strengths (3)

Well diversified global customer base spread across end-user industries
The company, since April 1, 2004, have supplied over 30,000 CNC machines globally, and during the last 3 Fiscals, they have supplied machines over 7,200 machines to more than 3,000 customers in India and across Asia (excluding India), Europe, North America and rest of the world. Their wide product basket helps them service a broad spectrum of customers and helps them maintain long term relationships with certain of their customers (Source: Company DRHP)

Risks (2)

They operate in a competitive industry
They operate in a highly competitive environment in both in the Indian and overseas markets. The industry is highly fragmented, both domestically and globally.If they fail to remain competitive, it may have an adverse effect on market share and results of operations. Many of their competitors may be larger than them and may benefit from greater economies of scale and operating efficiencies. There can be no assurance that they can continue to effectively compete with such manufacturers in the future, and failure to compete effectively may have an adverse effect on their business (Source:Company DRHP)

  • Well diversified global customer base spread across end-user industries
    The company, since April 1, 2004, have supplied over 30,000 CNC machines globally, and during the last 3 Fiscals, they have supplied machines over 7,200 machines to more than 3,000 customers in India and across Asia (excluding India), Europe, North America and rest of the world. Their wide product basket helps them service a broad spectrum of customers and helps them maintain long term relationships with certain of their customers (Source: Company DRHP)

  • Focus on technology and ability to deliver innovative solutions bolstered by dedicated R&D facilities
    The growth in their product range from entry level to sophisticated machines is a testament to their constant focus on technology. Their R&D team focuses on continually developing and customising their products and solutions. For instance, they have developed ‘7th Sense’ solution, TPM (Total Productive Maintenance) friendly machines, CNC Machines with ‘Linear Motor Technology’, software such as ‘Piston Oval Turning Software’ (POTS). (Source: Company DRHP)

  • Vertically integrated operations which enables customisation and production efficiencies
    They operate out of 3 manufacturing facilities 2 in Rajkot, Gujarat, and 1 in Strasbourg, France, which are equipped with capabilities to design, develop and manufacture their product portfolio. Their integrated operations enable them to manufacture some of the critical machine components. This reduces their dependence on third parties, streamlines their production process and improves their operational efficiencies  (Source: Technopak Report, Company DRHP)

  • They operate in a competitive industry
    They operate in a highly competitive environment in both in the Indian and overseas markets. The industry is highly fragmented, both domestically and globally.If they fail to remain competitive, it may have an adverse effect on market share and results of operations. Many of their competitors may be larger than them and may benefit from greater economies of scale and operating efficiencies. There can be no assurance that they can continue to effectively compete with such manufacturers in the future, and failure to compete effectively may have an adverse effect on their business (Source:Company DRHP)

  • They have incurred losses in the past
    They have incurred losses in Fiscal 2021,2022. Further, their material Subsidiaries, Jyoti SAS on a consolidated basis, have also incurred losses during Fiscals 2023, 2022 and 2021.Losses, if any, in future, could adversely impact their operations, financial condition and the trading price of the
    Equity Shares. (Source: Company DRHP)

Financials

Net Worth
Profit after tax
Total Borrowings
Earning Per Share

Industry Overview

- Machine Tool Industry Overview : Machine tools are used to cut and shape metals and other materials based on the specifications of a product. They provide an effective and efficient method of manufacturing critical components with ease and accuracy. Machine tools can be broadly classified by three ways on basis of how the workpiece is being shaped, how the tool is operated.

- Increasing trend of manufacturing as a service: Manufacturing as a service (MaaS) has made inroads into the CNC sector in recent years, and this trend will continue in 2022. It is accomplished using networked resources. The expense of maintaining and operating the CNC equipment is shared among the service's subscribers. MaaS allows businesses to be more flexible, productive, and cost-effective. Companies will seek out additional supply chain networks via MaaS as a result of COVID-19's impact. (Source: Company DRHP)

Jyoti CNC Automation IPO FAQs

What is the minimum lot size and investment required for Jyoti CNC Automation IPO?

The lot size is 45 shares and minimum investment required is Rs.14,895 for Jyoti CNC Automation IPO

Jyoti CNC Automation IPO is mainboard IPO of issue size up to Rs.1000 Crores

Jyoti CNC Automation IPO opens from Jan 09th, 2024 and closes on Jan 11th, 2024.

The allotment date is 12th Jan,2024 and listing date is 16th Jan,2024 Jyoti CNC Automation IPO.

Head to IPO section on ICICI Direct website and select Jyoti CNC Automation IPO. Enter and submit bid details and then click on proceed to apply once details are cross-checked. It’s that simple!!

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Jyoti CNC Automation IPO

₹ 14,895
45 Shares

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

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*The financials mentioned above are sourced from DRHP/ RHP documents.

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