JNK India Ltd Moves Towards IPO: Mumbai’s Premier Heating Equipment Company Takes Step with SEBI Filing
Mumbai, [Date] – JNK India Ltd, a prominent player in the heating equipment industry, headquartered in Mumbai, has taken a significant stride in its growth journey by filing the Draft Red Herring Prospectus (DRHP) with the esteemed Securities and Exchange Board of India (SEBI). This pivotal move marks the initiation of the company’s plans for an Initial Public Offering (IPO).
The JNK India IPO is strategically structured, encompassing both a fresh issue of equity shares totaling ₹300 crore and an enticing offer-for-sale (OFS) of up to 8.42 million equity shares. These shares are being offered by various stakeholders, including the company’s promoters and other notable selling shareholders, with each equity share holding a face value of ₹2.
Among the notable shareholders partaking in the offer are Goutam Rampelli, who is poised to offer up to 1 million shares, Dipak Kacharulal Bharuka with 8.67 lakh shares, JNK Heaters Co. Ltd. offering 2.18 million shares, Mascot Capital and Marketing Private Limited contributing 3.94 million shares, and Milind Joshi potentially offering up to 4.19 lakh shares.
The company’s proposed utilization of the ₹275.72 crore from the fresh issue proceeds is directed towards enhancing general corporate objectives and effectively meeting the dynamic demands of working capital requirements.
In a noteworthy consideration, the company is open to the prospect of issuing additional equity shares, capped at ₹60 crore. This decision, contingent upon consultations with the lead bankers on the issue, may be facilitated through a “Pre-IPO Placement.” The successful execution of such a placement would subsequently lead to a reduction in the size of the fresh issue.
The mechanism chosen for the offering is the book-building process, designed to ensure inclusivity. This entails reserving a minimum of 15% of the offering for non-institutional investors and a further 35% for retail individual investors. Qualified institutional buyers, on the other hand, could potentially secure a maximum of 50% of the offering.
The designated registrar of this promising endeavor is Link Intime India Private Limited, while the pivotal roles of book running lead managers are entrusted to IIFL Securities Limited and ICICI Securities Limited. As part of its trajectory, JNK India’s equity shares are earmarked for listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Unveiling its strengths and accomplishments, the DRHP features a comprehensive F&S Report underscoring JNK India’s position as a frontrunner in India’s process fired heaters segment. The company proudly holds a commanding market share exceeding 27% in the Indian Heating Equipment market in terms of new order bookings during the Fiscal Year 2023. A glance at the order book, as of March 31, 2023, reveals a remarkable leap from ₹143.58 crore in 2021 to an impressive ₹868.27 crore, signifying a sixfold increase.
Moreover, the Fiscal Year 2023 has proven to be a year of significant growth, as consolidated revenue from operations soared by an impressive 37.42%, surging from ₹296.40 crore in the preceding year to an impressive ₹407.30 crore. This upward trajectory is attributed to augmented income levels across various regions and product segments. The company’s net profit between Fiscal Years 2022 and 2023 also witnessed a commendable surge of 28.84%, climbing from ₹35.98 crore to an impressive ₹46.36 crore.
About JNK India:
Between the fiscal years FY21 and FY23, JNK India has established itself as a prominent player in the Indian heating equipment sector. The company specializes in a comprehensive range of activities including thermal design, engineering, manufacturing, supply, installation, and commissioning of process fired heaters, reformers, and cracking furnaces.
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