JNK India IPO: All You Need To Know
JNK India plans to raise up to Rs 649.5 crore via the IPO route, with the price range for the issue fixed in the range of Rs 395–415 apiece.
JNK India Ltd. will launch its three-day initial public offering on Tuesday to raise up to Rs 649.5 crore. The IPO is a mix of a fresh issue of Rs 300 crore and an offer for sale of Rs 349.5 crore, with the price band fixed in the range of Rs 395–415 per share. Anchor investors began bidding on April 22, 2024.
Mascot Capital, Goutam Rampelli, Milind Joshi, and JNK Global Co. will all offload equity shares as part of the OFS.
IIFL Securities Ltd. and ICICI Securities Ltd. are the book-running lead managers for the issue. The company's shares will be listed on both the NSE and the BSE.
Issue Details
Issue opens: April 23
Issue closes: April 25
Issue price: Rs 395-415 per share.
Fresh issue: Rs 300 crore.
Offer for sale: Rs 349.5 crore.
Total issue size: Rs 649.5 crore.
Listing: BSE and NSE.
Use of Proceeds
This is how the net proceeds from the issue will be utilised:
Proceeds worth Rs 262.7 crore will be directed towards the working capital requirements to bid and execute projects.
Rest of the proceeds to be utilised for other general corporate purposes.
Business
The company is involved in the manufacturing of process-fired heaters, reformers and cracking furnaces that are required in process industries such as oil and gas refineries, petrochemical and fertiliser industries.
The company has completed projects in Andhra Pradesh, Assam, Bihar, Karnataka, Kerala, Maharashtra, Tamil Nadu, and West Bengal; globally, it has completed projects in Nigeria and Mexico.
The company has also diversified into flares and incinerator systems and has been developing capabilities in the renewable sector with green hydrogen.
The business caters to customers primarily from the oil and gas (99.5% revenue mix), petrochemical (0.04% revenue mix) , fertilisers and other industries.
The order book of the company stood at Rs 845 crore as of Dec. 31, 2023, out of which Rs 729.2 crore, or 86.29%, was from the Indian market and Rs 115.8 crore, or 13.71%, was from the overseas market.
Key Risks
The company gets a significant portion of its revenue from operations from its contracting customers. As of 9MFY24, out of its total order book value of Rs 845 crore, 45.83% or Rs 387.2 crore was from its contracting customers.
The company was unable to trace some of its historical records and there have been certain instances of regulatory non-compliance in the past.
Delays in execution of its orders expose may impact its revenue from operations and cash flows in the future.
The company derives majority of its revenues from its corporate Promoter, JNK Global. Any kind of dissociation with JNK Global may hurt its operations.
Any downside in the capital expenditure of oil and gas, petrochemical and fertilizers industry would adversely impact the company's business operations.