Jyoti CNC Automation raises ₹448 crore from anchor investors ahead of IPO

CNC machine manufacturing company Jyoti CNC Automation has raised over 448 crore from anchor investors on January 8, a day before it opens for initial public offering (IPO) on Janaury 9.

The company allocated 1,35,27,190 equity shares to anchor investors at 331 per share. 

Also read: Jyoti CNC Automation IPO opens tomorrow: GMP, issue details, 10 key things to know

“ The IPO Committee of the Company at its meeting held on January 8, 2024, in consultation with the Equirus Capital Private Limited, ICICI Securities Limited and SBI Capital Markets Limited (“Book Running Lead Managers”) to the Issue, has finalized allocation of 1,35,27,190 Equity Shares, to Anchor Investors at Anchor Investor Allocation Price of Rs. 331 per Equity Share (including share premium of Rs. 329 per Equity Share),” the company said in its exchange filing.

Anchor investors included Goldman Sachs, Nomura Funds, Natixis International Funds, Neuberger Berman Emerging Markets Equity Fund, Optimix Wholesale Global, The Master Trust Bank of Japan, Prudential Hong Kong, Carmignac Portfolio, Allianz Global Investors Fund, and Eastspring Investments India Fund invested in the Rajkot-based company.

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Domestic institutional investors ICICI Prudential Mutual Fund, Nippon Life India, Kotak Mahindra Trustee, Axis Mutual Fund, Manulife Global Fund, Canara Robeco Mutual Fund, Invesco Mutual Fund, Bandhan Mutual Fund, Edelweiss Trusteeship, HDFC Life Insurance Company, and Bajaj Allianz Life Insurance Company also participated in the counter.

“Out of the total allocation of 1,35,27,190 equity shares to the anchor investors, 52,90,650 equity shares were allocated to 9 domestic mutual funds, which have applied through a total of 21 schemes,” the company further said.

The manufacturer of metal-cutting computer numerical control (CNC) machines aims to raise 1,000 crore through its IPO at the upper end of the price band, which ranges from 315 to 331 per share.

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This IPO comprises exclusively a fresh issue by the company. Out of the total net proceeds from the fresh issue, 475 crore will be allocated for debt repayment, and an additional 360 crore will be earmarked for long-term working capital requirements. The remaining funds from the net fresh issue will be directed towards general corporate purposes.

In the fiscal year 2023, Jyoti CNC Automation achieved profitability, reporting a profit of 15.06 crore compared to a loss of 48.3 crore the previous year. During the same period, the revenue from operations increased by 24.5 percent to reach 929.3 crore. In the first half of the financial year ending September 2024, the net profit stood at 3.35 crore with a revenue of 509.8 crore.

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Published: 08 Jan 2024, 09:34 PM IST