JNK India IPO Commences with Strong Investor Interest

JNK India, a leading heating equipment manufacturer, raises ₹649.47 crore through IPO, attracting strong investor interest. Analysts bullish on the company's growth prospects in the booming refinery, petrochemical, and fertilizer sectors.

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Dil Bar Irshad
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JNK India IPO Commences with Strong Investor Interest

JNK India IPO Commences with Strong Investor Interest

The initial public offering (IPO) of JNK India Limited, a leading manufacturer of heating equipment, commenced for subscription on April 23, 2024. The IPO, which aims to raise Rs 649.47 crore, has already garnered significant investor interest, with the shares trading at a premium of Rs 15 in the grey market.

The IPO consists of a fresh offering of 76 lakh shares worth Rs 300 crore and an offer for sale of 84 lakh shares valued at Rs 349.47 crore. The price band for the issue has been set at Rs 395-415 per share, with a minimum lot size of 36 shares. On the first day of bidding, the IPO was subscribed 0.16 times, with retail investors showing the highest participation.

JNK India specializes in the design, manufacture, supply, installation, and commissioning of process-fired heaters, reformers, and cracking furnaces for industries such as oil and gas, petrochemicals, and fertilizers. The company has completed projects across various states in India and has also expanded into global markets like Nigeria and Mexico.

Why this matters: The strong investor response to JNK India's IPO highlights the growing demand for heating equipment in India's rapidly expanding refinery, petrochemical, and fertilizer sectors. The successful listing of JNK India could lead the way for more companies in the industrial manufacturing space to tap into the capital markets.

Ahead of the IPO, JNK India raised Rs 194.84 crore from anchor investors, including prominent names like Goldman Sachs, Kotak MF, HDFC MF, and Aditya Birla SunLife Insurance. The company reported a revenue of Rs 407.30 crore for FY23, a 37.42% increase from the previous year, and a net profit of Rs 46.36 crore, up 29% year-on-year.

Several brokerage firms, including Anand Rathi, Choice Broking, and Reliance Securities, have recommended subscribing to the IPO, citing JNK India's strong fundamentals, unique product profile, and promising growth prospects in the heating equipment market. Analysts believe the IPO valuation of 43x P/E appears fairly priced, considering the company's market position and expansion potential.

The JNK India IPO will conclude on April 25, 2024, and the shares

Key Takeaways

  • JNK India, a heating equipment manufacturer, launched its ₹649.47 crore IPO on April 23, 2024.
  • The IPO consists of a fresh issue of 76 lakh shares and an offer for sale of 84 lakh shares.
  • JNK India specializes in process-fired heaters, reformers, and cracking furnaces for industries like oil, gas, and fertilizers.
  • The IPO received strong investor interest, with shares trading at a ₹15 premium in the grey market.
  • Analysts recommend subscribing to the IPO, citing JNK India's strong fundamentals and growth potential.