JNK India Limited IPO: Company Info, Strengths, Risks and More

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JNK India Limited IPO

JNK India Private Limited, one of the leading heating equipment companies, is all set to launch a Rs. 649.47 crore IPO in April 2024. As per recent data, the global heating equipment industry is expected to grow at a CAGR of 7.7% per annum from the year 2023 to 2030. If you are looking forward to leveraging the industry growth, you can consider investing in JNK India IPO.

Read along to get a comprehensive overview of the company, IPO details, financial summary, competitive strength and the risk factors associated with its business.

IPO Details

JNK India Pvt Ltd is going public with an objective to raise Rs. 649.47 crore. Here are the details of the IPO:

IPO opening date

April 23, 2024

IPO closing date

April 25, 2024

Total issue size

Rs. 649.47 crore (approx)

Fresh issue size

Rs. 300.00 crore (approx)

Issue type

Book Built Issue IPO

Listing at

BSE, NSE

Face value

Rs. 2 per share

Price Band

Rs. 395 to Rs. 415 per share

Lot size

36

Additional Read: JNK India Limited IPO

About the Company

JNK India Pvt Ltd is amongst the leading heating equipment companies in the country. It is primarily into thermal designing, manufacturing, engineering, supplying, installing and commissioning of cracking furnaces, process-fired heaters and reformers. The Mumbai-based company has around 27% market share in the Indian heating equipment market in terms of its order bookings in the financial year 2023.

Moreover, it has completed projects across multiple states including Maharashtra, Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Kerala, Bihar and Assam. It has also executed global projects in Mexico and Nigeria. Furthermore, it has served more than 17 Indian clients and 7 clients overseas.

Recently, the company launched its IPO with the primary objective of funding its increasing working capital requirements.

IPO Tentative Timetable

Here is the tentative timetable for JNK India IPO:

Anchor Allocation Date

22nd April, 2024

IPO Opening Date

23rd April, 2024

IPO Closing Date

25th April, 2024

Cut-off Time for UPI Mandate 

5 PM on 25th April, 2024

Basis of Allotment

26th April, 2024

Date of Refund Initiation 

29th April, 2024

Credit of Shares to Demat

29th April, 2024

Listing date

30th April, 2024

IPO Lot Size

Here is the lot size of the JNK India IPO, showing the minimum/ maximum investment by a retail investor and an HNI.

Application Type

Number of Lots

Amount

Minimum (retail investors)

1

Rs. 14,940

Maximum (retail investors)

13

Rs. 1,94,220

Minimum (S-HNI) 

14

Rs. 2,09,160

Maximum (S-HNI) 

66

Rs. 9,86,040

Minimum (B-HNI) 

67

Rs. 10,00,980

Company Financials

Here is the financial summary of JNK India Pvt Ltd for the last three financial years.

Parameters as per the year ending on

31st March 2023 (Rs. in millions except EPS)

31st March 2022 (Rs. in millions except EPS)

31st March 2021 (Rs. in millions except EPS)

Total Assets

3,377.75

2,683.19

1,251.24

Total Liabilities

2,156.05

1,961.39

883.07

Total Expenses

3,488.34

2,493.10

1,156.49

Total Revenue

4,115.45

2,971.36

1,384.53

Profit After Tax

463.62

359.83

164.76

EBITDA

735.05

545.77

260.15

Earnings Per Share (Basic)

9.66 

7.50 

3.43

Earnings Per Share (Diluted)

9.51 

7.50

3.43

Strengths

Here are some of the strengths of JNK India Pvt Ltd:

  • JNK India Limited is one of the leading players in the Indian heating equipment industry with a market share of around 27% in terms of its order booking in fiscal year 2023. 

  • It is brilliantly positioned to tactfully capture market opportunities such as the growing petrochemical feedstock and transportation fuel in the Indian refinery industry.

  • It has a well-diversified product portfolio, catering for a diverse range of industries such as Oil and gas, petrochemicals, fertilizers, hydrogen and methanol plants etc.

  • Moreover, JNK India Limited has demonstrated a strong financial performance for the fiscal years 2023 and 2021. Its revenue from operations, EBITDA and PAT has witnessed an exponential growth of 71.97%, 68.09% and 67.75%, respectively in the past few years.

  • The company is led by an experienced and skilled management team. In addition, the promoters and directors of the company have significant industry experience and bring extensive expertise to the company.

Risk Involved

All businesses face certain internal and external risk factors. Below are some of the risk factors associated with the business of JNK India Pvt Ltd.

  • A major portion of its revenue comes from orders which are contracted to them by customers in contracting agreements. Failure to secure a new contract can affect the profitability of the company.

  • There is no guarantee that the quantity of orders received in the past or currently will be repeated in the future. In other words, there is uncertainty regarding whether the order book will expand, remain consistent or might even decline. Moreover, any delay in executing our present orders might negatively impact the order book shortly.

  • JNK India Limited derives a significant portion of its revenue from the sale of heating equipment. A decrease in demand within the heating equipment industry might have an adverse effect on their overall business.

Summary

As a major player in India's heating equipment industry, JNK India Pvt Ltd offers a reliable and lucrative investment opportunity for all investors. The company is coming up with an IPO of Rs. 649.47 crore, the IPO will be live from 23rd April to 25th April 2024. If you are looking forward to investing in JNK India IPO, make sure to go through the DRHP carefully. 

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Source - https://www.hzlindia.com/wp-content/uploads/Earnings-Press-Release_Q4FY24-_-190424.pdf

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Frequently Asked Questions

Who are the book-running lead managers of the JNK India IPO?

Answer Field

ICICI Securities Limited and IIFL Securities Limited are book-running lead managers of the JNK India IPO.

What is the fresh issue size of the JNK India IPO?

Answer Field

The fresh issue size of the JNK India IPO is Rs. 300 crore.

Who are the selling shareholders of the JNK India IPO?

Answer Field

The selling shareholders of the JNK India IPO are Dipak Kacharulal Bharuka, Goutam Rampelli, JNK Heaters Co. Ltd, Mascot Capital and Marketing Private Ltd and Milind Joshi.

Who is the registrar of the JNK India IPO?

Answer Field

Link Intime India Private Limited is the registrar of the JNK India issue.

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