Jyoti CNC Automation, a CNC machine manufacturer, has secured approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), marking a significant milestone in the company’s financial plans. The approval follows the filing of its Draft Red Herring Prospectus (DRHP) with the market regulator in September 2023, signaling the company’s intent to raise funds through this public offering.
Jyoti CNC Automation asserts its position as the second-largest CNC machine manufacturer in India, boasting an impressive 8% market share in fiscal 2022. Renowned for its expertise, the company specializes in simultaneous 5-Axis CNC machines, contributing to its status as one of the key suppliers with one of the most comprehensive CNC machine portfolios in the country, as per a F&S Report. The diverse range of CNC machines offered by Jyoti CNC Automation encompasses CNC Turning Centers, CNC Turn Mill Centers, CNC Vertical Machining Centers (VMCs), CNC Horizontal Machining Centers (HMCs), simultaneous 3-Axis CNC machining Centers, simultaneous 5-Axis CNC machining Centers, and multi-tasking machines. This extensive product lineup positions the company as a leader in providing versatile solutions to meet various machining needs. With an expansive offering of over 200 variants spread across 44 series, Jyoti CNC Automation has made a significant impact in the market. Over the last three fiscal years, the company has successfully delivered more than 7,200 CNC machines to a broad customer base exceeding 3,000 clients. Its reach extends not only across India but also spans Asia (excluding India), Europe, North America, and other parts of the world.
Since April 1, 2004, Jyoti CNC Automation has achieved a remarkable global milestone by supplying over 30,000 CNC machines, emphasizing its extensive footprint and influence in the CNC machine manufacturing sector. The company’s vision to innovation, quality, and customer satisfaction has positioned it as a reliable and preferred choice for CNC machining solutions on a global scale. The proposed IPO by Jyoti CNC Automation is set to include a fresh issue of ₹1000 crore, a move that reflects the company’s strategic approach to bolster its financial position and support future growth initiatives. The net proceeds from the fresh issue will be allocated with a clear focus on debt repayment, long-term working capital requirements, and general corporate purposes.
Out of the total fresh issue proceeds, ₹450 crore has been earmarked for the purpose of repaying the company’s existing debts, a prudent measure to enhance financial stability and reduce financial obligations. Another ₹300 crore will be allocated to address long-term working capital requirements, ensuring sustained operational efficiency. The remaining funds will be set aside for general corporate purposes, providing the company with flexibility in navigating diverse business needs and opportunities. The decision to utilize the net proceeds for debt repayment reflects Jyoti CNC Automation’s goal to financial prudence and stability. By reducing debt, the company aims to strengthen its financial position, potentially lowering interest burdens and enhancing overall financial flexibility.
Equirus Capital Private Limited, ICICI Securities Limited, and SBI Capital Markets Limited have been appointed as the Book Running Lead Managers to the IPO, indicating a well-structured and managed offering process. The involvement of these reputed financial institutions underlines the credibility and market confidence associated with Jyoti CNC Automation’s IPO. Once the IPO is successfully launched, the equity shares of Jyoti CNC Automation will be listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), providing investors with the opportunity to engage with and trade the company’s shares on these prominent stock exchanges.