JNK India initial public offering (IPO) received a steady response from investors in all three categories in its three days of bidding. The allotment of JNK India was finalised on Friday, April 26. JNK India Ltd is all set to make its debut on both stock exchanges BSE and NSE on Tuesday, April 30.
On the third day of subscription, the JNK India IPO witnessed considerable enthusiasm from Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs). Despite the retail section being fully subscribed, the overall response remained stable.
According to BSE data, the JNK India IPO garnered bids for 31,17,66,156 shares, significantly surpassing the 1,10,83,278 shares available for subscription. This oversubscription translates to a subscription rate of 28.13 times.
The retail segment saw a subscription rate of 4.11 times, while non-institutional investors subscribed at a rate of 23.26 times. The quota for Qualified Institutional Buyers (QIB) was oversubscribed significantly at 75.72 times.
JNK India GMP today
The grey market premium (GMP) for the JNK India IPO is +117, suggesting that JNK India shares are trading at a premium of ₹117 in the unofficial market, as reported by investorgain.com.
Considering the upper end of the IPO pricing range along with the existing grey market premium, it is anticipated that JNK India shares will debut at ₹532 per share, representing an increase of 28.19% over the IPO price of ₹415.
Today’s GMP for the IPO indicates a higher premium and predicts a robust listing, based on the grey market activity observed over the past ten sessions. Analysts at investorgain.com estimate that the GMP ranges from a minimum of ₹0 to a maximum of ₹117.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Also read: JNK India IPO allotment finalised on April 26; latest GMP, 6 steps to check status
Analysts take on JNK India IPO
Brokerage firm Reliance Securities said that it expects that the the order book to see improvement with new businesses and improved prospects for the oil-gas and fertilizer sectors, while recommeding ‘subscribe’ to the issue.
“JNK has evolved as one of the key players to capitalize on the upcoming demand of Heating Equipment completing the value chain in Heaters, Reformers and Cracking Furnace over the past few years. The geographical expansion with focus on high growth markets to capitalize on the industry tailwinds worldwide as there are a total of 53 refineries expected to be commissioned in 21 countries by CY30 as per F&S report and heating equipment accounts for 3.3% of the total capex estimated at $ 186 bn. We expect the order book is expected to see improvement with new businesses and improved prospects for the oil-gas and fertilizer sectors. JNK has the global parentage, skilled and experienced promoter’s holding respective backgrounds in their line of business are the added advantages. Hence, we recommend an “SUBSCRIBE” to the issue,” the brokerage firm said in its note.
Also read: Upcoming IPOs: 4 new issues and listings scheduled for this week
Another brokerage firm Nirmal Bang said that JNK India delivered growth and return ratios which are superior to comparable companies while its valuation is at the lower end of the range.
The brokerage firm giving ‘subscribe’ tag to the issue said, “JNK is well placed to capitalize on the Global as well as Indian capex unfolding in the oil and gas, petrochemicals and fertilizer industries. With the heating equipment industry having limited players due to high entry barriers, JNK has been able to command strong EBITDA margins of 17% and generate ROCE of 40% in FY23. JNK has delivered growth and return ratios which are superior to comparable companies while its valuation is at the lower end of the range. Based on favourable industry structure with limited competition and strong pipeline of orders, we are positive on JNK and recommend to Subscribe to the IPO.”
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Published: 28 Apr 2024, 04:28 PM IST