Maharashtra-based JNK India Ltd is set to commence its initial public offering (IPO) subscription from April 23 to April 25. Prior to this, anchor investors can place their bids on April 22. The basis of allotment will be decided on April 26, with refunds and credit of equity shares scheduled for April 29. The company is expected to list on exchanges on April 30.
Details of the IPO
The IPO comprises a fresh issue of Rs 300 crore along with an offer-for-sale of up to 8.42 million shares by existing shareholders and promoters. The offer-for-sale includes shares from Goutam Rampelli, JNK Global, Mascot Capital and Marketing, and Milind Joshi.
Utilization of Funds
Proceeds from the fresh issue will primarily be allocated to fund working capital requirements. IIFL Securities and ICICI Securities are the lead managers to the issue.
Company Profile
JNK India Ltd specializes in manufacturing heating equipment for process industries such as oil refineries and petrochemical plants. It manages the entire process from design to installation, catering to both domestic and international markets. The company faces competition primarily from Thermax Ltd. It has also diversified its offerings into flares, incinerator systems, and is exploring opportunities in the renewable sector, particularly in green hydrogen.
Financial Performance
For the fiscal year 2022-23, JNK India Ltd reported a revenue of Rs 407.32 crore, a significant increase from Rs 296.40 crore in the previous year. The oil and gas segment accounted for 77 percent of the revenue. Net profit for the fiscal stood at Rs 46.36 crore compared to Rs 35.98 crore in the previous year. As of the nine months ended December 31, 2023, the total debt of the company amounted to Rs 56.73 crore.
Order Book and Revenue Visibility
As of December 31, 2023, the company’s order book totaled Rs 845.03 crore, with 86.29 percent of orders from India and 13.71 percent from overseas. This robust order book, equivalent to 2.50 times its annualized revenue for the same period, indicates strong revenue visibility. The company is engaged in ongoing contract negotiations for prospective projects, further supporting its revenue outlook.
