Tue. Jun 25th, 2024

Summary:

  • Gujarat-based Jyoti CNC Automation is planning to raise ₹1,000 crore through an initial public offering (IPO) on January 9.
  • The company is one of the leading manufacturers of metal cutting computer numerical control (CNC) machines, with a 10% market share in India.
  • The funds raised from the IPO will be used for debt reduction, working capital, and to tap into the electronics manufacturing services (EMS) opportunity.
  • The company expects import substitution in the CNC industry to be a big opportunity, as imports have decreased from 80% to 65% in recent years.
  • The company’s order book is robust, with aerospace accounting for ₹1,900 crore, auto for ₹800 crore, and EMS for ₹300 crore.

Gujarat-based Jyoti CNC Automation is planning to raise ₹1,000 crore through an initial public offering (IPO) on January 9. The company is one of the leading manufacturers of metal cutting computer numerical control (CNC) machines and has a 10% market share in India. The funds raised from the IPO will be used for debt reduction, working capital, and to tap into the electronics manufacturing services (EMS) opportunity. Import substitution in the CNC industry is seen as a big opportunity, as imports have decreased from 80% to 65% in recent years. The company’s order book is robust, with aerospace accounting for ₹1,900 crore, auto for ₹800 crore, and EMS for ₹300 crore. The IPO comes at a time when the CNC industry is growing at 20% annually and Jyoti CNC has grown at 27% over the past three years. The company expects to improve margins as capacity utilization increases and aims to be profitable in the future. With a strong financial performance, a solid order book, and a focus on the growing EMS opportunity, Jyoti CNC Automation’s IPO has the potential to attract investor interest.