Jyoti CNC Automation closes debut day with 30% listing gains

• The stock listed at ₹433 as compared to its issue price of ₹331 per share.
• Its market cap for the company is at ₹9,850 crore crore as per Bombay Stock Exchange.

Jyoti CNC Automation debuted on the stock exchanges on Tuesday at a 12.3% premium in the morning trade. However, it later gained speed and closed its debut day with 30% listing gains on Tuesday.

This is much higher than the grey market’s expectations of 13% listing gains. The stock closed at ₹433 which is ₹102 higher than the issue price of ₹331 per share.

Jyoti CNC’s market cap is at ₹8,460 crore as per Bombay Stock Exchange. The ₹1,000 crore initial public offer (IPO) of the company was subscribed 41 times the shares on offer.

The year of 2023 has been good market debuts with many stocks providing investors with positive listing gains.

Here are the listing gains of the last few market debuts

The company is a manufacturer of metal cutting computer numerical control (CNC) machines. It is a global leader in CNC machine manufacturing, commanding the third largest market share in India with 10% as of FY23. It’s the twelfth largest globally with 0.4% share in 2022.

Some of its top clients include Space Applications Centre – ISRO, BrahMos, Turkish Aerospace, Tata Advanced System, Bharat Forge, Kalyani Technoforge and more.

It has vertically integrated operations which they consider essential to their ability to provide technologically relevant and customized solutions.

“Led by chairman and managing director, Parakramsinh Ghanshyamsinh Jadeja, their integrated approach across operations prioritizes customization, reduced delivery timelines, and robust after-sales support. Their pioneering '7th Sense' solution aligns with 'Industry 4.0', automating machine diagnostics for heightened productivity,” says a report by Ventura Securities.

“We believe Jyoti CNC is poised to benefit from the ongoing capex cycle and should see healthy growth over the medium term owing to a strong order book,” says Indsec Securities which assigns a ‘subscribe’ rating to the IPO.

The 20-year old Gujarat based company has three facilities — two in Rajkot and one in Strasbourg, France, with a capacity of 4,400 machines per annum in India and 121 machines per annum in France.