JNK India Limited IPO Day 1 Subscription Status
JNK India IPO subscription status was 49% on Day 1. There have been 48% subscriptions for the retail component, and 25% subscriptions for the non-institutional investor (NII) category. 67% of the QIB quota has been booked.
JNK India Limited is a prominent player in the engineering and technology sector, specializing in manufacturing heating equipment, flares, incinerators, and other related products. The company has established itself as a leader in sustainable development through its innovative technology and engineering expertise. The company was founded on June 14, 2010, marking over a decade of operations in the industry.
The company's promoters, including Goutam Rampelli, Dipak Kacharulal Bharuka, JNK Heaters Co. Ltd, Mascot Capital and Marketing Pvt Ltd, and shareholder Milind Joshi, are significant stakeholders. JNK India is the Indian subsidiary of the South Korean-based JNK Global, which holds a 16% market share globally, including JNK India's contributions.
JNK India Limited stands out as a company with a robust foundation, a clear vision for the future, and a commitment to contributing to the world's sustainable energy solutions. Its journey from a regional manufacturer to a global technology solutions provider is a testament to its strategic initiatives and the value it delivers to its customers and stakeholders.
Subscription Status
JNK India IPO has received bids for 48,96,828 shares against 1,10,83,278 shares on offer, according to data from the NSE.
The retail investors' segment received bids for 23,67,036 shares against 56,05,596 shares on offer for this segment.
The NIIs portion got bids for 4,68,540 shares against 24,02,399 on offer for this segment.
The QIBs segment got bids for 20,72,772 shares against 30,75,283 on offer for this segment.
JNK India Limited IPO Details
Issue Date: The issue date in an IPO, also known as the initial offering date, is when a company's stock is first made available for public purchase. This date is a significant milestone in the process of an initial public offering, marking the transition of a company from private to public status. (Issue Date: April 23, 2024 to April 25, 2024).
Listing Date: The listing date refers to the day when the company's shares are officially listed and begin trading on a stock exchange. This is typically several business days (3-6 days) after the issue date after processes like share allotment and finalization are completed. On this date, investors who were allotted shares during the IPO can begin selling them, and new investors can start purchasing them on the exchange at the prevailing market price. (Listing Date: Tuesday, April 30, 2024).
Face Value of Shares: The face value of shares in an IPO, also known as the nominal or par value, is a predetermined fixed price set by the company and mentioned in its memorandum of association. It represents the initial capital contributed by the founders and is used for accounting and regulatory purposes. During an IPO, shares are typically offered at a price higher than the face value, which includes a premium based on market demand and the company's performance indicators. (IPO Face Value: ₹2 per share).
Price Band: A price band of an IPO is the range of prices within which the investors can bid for the shares of a company that is going public. The price band is set by the issuer and the lead managers of the IPO, based on various factors such as the demand and supply of the shares, the financial performance and valuation of the company, and the market conditions. (IPO Price: ₹395 to ₹415 per share).
Lot Size: In an Initial Public Offering (IPO), the lot size refers to the minimum number of shares an investor can apply for. It is a pre-determined set of shares that investors must bid for, and applications must be in multiples of this lot size. The lot size ensures a standardized bidding process and helps in the fair allocation of shares among investors. (Lot Size: 36 Shares).
Total Issue Size: The total issue size represents the total number of shares the company is offering to raise capital through the IPO. This number is determined by the company and its advisors, considering factors like their funding needs and the expected investor demand. The total issue size is then divided by the lot size to determine the total number of lots available for purchase by investors. (Total Issue Size: 16,015,988 shares (aggregating up to ₹649.47 Cr)).
Fresh Issue: A fresh issue of shares in an IPO refers to the creation and sale of new shares by a company to the public for the first time to raise capital. Unlike an Offer for Sale, where existing shareholders sell their shares, a fresh issue results in new funds going directly to the company, which can be used for various purposes such as expansion, debt repayment, or investment in new projects. This process dilutes the existing shareholding but does not provide an exit route for current investors. (Fresh Issue: 7,594,936 shares (aggregating up to ₹300.000 Cr)).
Offer for Sale: The offer for sale, which is the amount and type of shares that the company is selling to the public. The offer for sale can be either primary or secondary, or a combination of both. A primary offer for sale means that the company is issuing new shares and raising fresh capital. A secondary offer for sale means that the existing shareholders are selling their shares and receiving the proceeds. A combination offer for sale means that both new and existing shares are being sold. (Offers for Sale: 8,421,052 shares of INR 2 (aggregating up to ₹349.47 Cr)).
Issue Type: The type of an IPO can vary depending on the market and regulatory conditions. Some of the common types of IPOs are, Fixed priced IPO, Auction IPO, Book Building IPO, and Hybrid IPO. (Issue Type: Book BuildIssue IPO).
Listing At: An integral part of the IPO process is the listing. This refers to the day the company's shares officially begin trading on a stock exchange, such as the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE) in India. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: NSE BSE).
Retail Shares Offered: This refers to the portion of the total shares being made available specifically for individual investors, distinct from institutional investors like banks or hedge funds. Regulatory bodies often mandate a minimum percentage of shares be reserved for retail investors, aiming to promote broader public participation in the capital markets. (Retail Shares Offered: 5,477,489 (35.00%)).
QIB Shares Offered: QIBs are institutional investors such as banks, mutual funds, insurance companies, pension funds, etc., who have expertise and financial resources to invest in the securities market. They are considered as informed and sophisticated investors who can assess the risks and returns of an IPO. QIBs can bid for up to 50% of the total shares offered in an IPO via the profitability route, or up to 75% of the total shares offered in an IPO via the QIB route. QIBs have to pay only 10% of the bid amount at the time of application, and the rest after the finalization of the basis of allotment. (QIB Shares Offered: 3,129,903 (20.00%)).
NII (HNI) Shares Offered: NIIs are investors who are not QIBs or retail investors. They include high net-worth individuals (HNIs), corporate bodies, trusts, societies, etc., who bid for more than Rs 2 lakhs worth of shares in an IPO. NIIs can bid for up to 15% of the total shares offered in an IPO. NIIs have to pay 100% of the bid amount at the time of application. NIIs cannot bid at the cut-off price, which is the highest price at which the shares are allotted. HNIs are a sub-category of NIIs who bid for more than Rs 10 lakhs worth of shares in an IPO. (NII Shares Offered: 2,347,497 (15.00%)).
Anchor Investor Shares Offered: Anchor investor shares in an IPO refer to a portion of shares reserved for Qualified Institutional Buyers (QIBs) who commit to purchasing the shares before the IPO is open to the public. These investors, often comprising mutual funds, banks, insurance companies, and other financial institutions, are seen as a vote of confidence in the IPO due to their reputation and the rigorous research they conduct before investing. They bid at least one day prior to the IPO opening and are subject to a lock-in period post-IPO, which helps stabilize the share price during the initial trading period. The anchor investor's role is crucial in setting a precedent for the IPO's pricing and demand, influencing other potential investors' perceptions of the IPO's value and stability. (Anchor Investor Shares Offered: 4,694,989 (30.00%)).
Conclusion
In conclusion, the JNK India IPO presents a compelling opportunity for investors. The company's niche position in the Heating Equipment segment, consistent growth in financial performance, and a significant order book of Rs. 845 crore as of December 31, 2023, underscore its potential. With a reasonable pricing based on annualized FY24 earnings and a diverse project portfolio across domestic and international markets, JNK India stands as a promising investment for those looking at medium to long-term gains. However, as with any investment, potential investors should consider their individual risk profiles and conduct thorough due diligence before participating in the IPO.
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Disclaimer: This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing securities, that suit your needs. The performance and returns of any equity stock can neither be predicted nor guaranteed.
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