On April 30, JNK India shares entered the market with a bang, boasting a nearly 50% premium over their IPO price of ₹415.
Analysts had anticipated a premium of 22-30%, but the actual listing surpassed these estimates.
Listing Performance
The stock debuted on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) at significant premiums of 49.64% and 49.4% respectively, trading at ₹621 and ₹620 per share.
Analyst Insights and Recommendations
Ahead of the listing, JNK India shares were trading at a premium of ₹130 in the unlisted market, indicating a listing gain of 31.33%.
Prashanth Tapse of Mehta Equities attributed the premium to the company’s strong market leadership in heating equipment and its promising future prospects.
Tapse recommended conservative investors to book profits while advising risk-taking investors to hold onto their shares for the long term.
Shivani Nyati of Swastika Investmart Ltd. echoed this sentiment, suggesting existing investors to hold their shares with a stop loss at 560 and monitor performance closely.
IPO Overview and Subscription Status
The IPO was oversubscribed by more than 28 times, with qualified institutional bidders (QIBs) showing robust interest at 75.72 times subscription.
Non-institutional investors subscribed 23.26 times, while retail investors showed a demand of 4.11 times.
The IPO, which ran from April 23 to 25, comprised fresh shares worth ₹300 crore and an offer-for-sale (OFS) of up to 84.2 lakh shares by existing shareholders and promoters.
The net proceeds will be allocated towards working capital requirements and general corporate purposes.
Business Overview and Expansion Plans
JNK India specializes in manufacturing heating equipment for process industries like oil refineries
and petrochemical plants, holding a substantial market share of 27%. The company, aiming for further growth, plans to venture into the renewable sector with green hydrogen.
Financial Performance
In FY23, JNK India reported a revenue of ₹407 crore, marking significant growth from ₹296.40 crore the previous year.
Net profit for the fiscal stood at ₹46 crore compared to ₹36 crore in the preceding year.
As of December 2023, the company’s total debt amounted to ₹56.73 crore, with an order book totaling ₹845.03 crore, primarily from India and overseas markets.
