Jyoti CNC Automation IPO subscribed 3.9x on day 2

• Jyoti CNC IPO’s retail investor portion of the issue was subscribed 11x on the second day of the issue.
• It’s a Gujarat based manufacturer of metal cutting computer numerical control (CNC) machines.
• The entirely fresh issue intends to raise as much as ₹1,000 crore.

The ₹1,000 crore initial public offer (IPO) of Jyoti CNC Automation was subscribed 3.9 times the shares on offer, on the second day of the issue.

The retail portion of the issue was subscribed 11 times over, while the non-institutional investor portion was subscribed 6.4 times.

The company is a manufacturer of metal cutting computer numerical control (CNC) machines. It has raised ₹448 crore from 37 anchor investors ahead of opening the issue to the public.

Some of its marquee investors are Nomura Funds Ireland, Goldman Sachs Funds, Bajaj Allianz Life Insurance Company, ICICI Prudential and more.


Source: BSE




Jyoti CNC Automation is the 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 fixed a price band of ₹315-331 per equity share for its entirely fresh issue. Investors can bid for 45 equity shares and in multiples of 45 equity shares thereafter. The company intends to use proceeds from the issue towards working capital needs, loan payment, and for general corporate purposes.

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.

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.

“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.