Ahead of IPO, Jyoti CNC Automation mobilises Rs 448 cr from anchor investors

Jyoti CNC Automation on Monday raised Rs 448 crore from anchor investors a day before its initial share-sale offer opening for public subscription.

This will be the first public issue of 2024 on the main board of leading stock exchanges BSE and NSE.

The company has allotted 1.35 crore equity shares to 37 funds at Rs 331 apiece, which is also the upper end of the price band, according to a circular uploaded on BSE's website.

At this price, the company has garnered Rs 447.75 crore.

The entities that participated in the anchor bidding include Goldman Sachs, Nomura, Neuberger Berman Emerging Markets Equity Fund, The Master Trust Bank of Japan, Eastspring Investments India Fund, HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, ICICI Prudential Mutual Fund (MF), Axis MF, Nippon India MF and Edelweiss MF.

The IPO is entirely a fresh issue of equity shares worth up to Rs 1,000 crore.

The maiden public issue, with a price band of Rs 315-331 per share, will open for public subscription on January 9 and conclude on January 11.

Proceeds from the issue would be used for debt payment, funding the long-term working capital requirements of the company, and general corporate purposes.

Jyoti CNC Automation is a leading manufacturer of Computer Numerical Control (CNC) machines. Its customers include ISRO, BrahMos Aerospace Thiruvananthapuram Ltd, Turkish Aerospace, MBDA, Uniparts India, Tata Advanced System, Tata Sikorsky Aerospace, Bharat Forge, Kalyani Technoforge, and Bosch Ltd.

As of September 2023, the company had an order book of Rs 3,315.33 crore.

Equirus Capital, ICICI Securities, and SBI Capital Markets are the book-running lead managers to the issue.

Equity shares of the company will be listed on BSE and NSE.

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