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JNK India Limited, a manufacturer of process-fired heaters, reformers, and cracking furnaces, is set to enter the public market with an initial public offering (IPO) opening on April 23, 2024. Let's delve into the key details to help you decide if this offering aligns with your IPO investment goals.

JNK India IPO fundamentals

  • Issue size: Rs 649.47 crore
  • Fresh issue: Rs 300.00 crore (0.76 crore shares)
  • Offer for sale (OFS): Rs 349.47 crore (0.84 crore shares)
  • Price band: Rs 395 - Rs 415 per share
  • Minimum lot size: 36 Shares (Rs 14,940)
  • JNK India IPO dates: April 23 - April 25, 2024
  • Expected listing date: April 30, 2024 (BSE & NSE)

About JNK India Limited

  • Established in 2010, JNK India Limited designs, manufactures, supplies, installs, and commissions process-fired equipment used in various industries.
  • The company boasts a domestic and international presence, having completed projects in India and countries like Nigeria and Mexico.
  • Its clientele includes prominent names like Indian Oil Corporation Limited and Tata Projects Limited.

JNK India IPO financials

  • JNK India Limited has demonstrated revenue growth of 38.5% and a profit after tax (PAT) increase of 28.84% between FY2023 and FY2022.
  • As of December 2023, the company reported:

    • Revenue: Rs 256.76 crore
    • PAT: Rs 46.21 crore
    • Net Worth: Rs 168.56 crore

  • Market capitalisation of the IPO is estimated at Rs 2308.27 crore.

JNK India IPO: strengths

  • Established track record with a diversified client base in India and overseas.
  • Experienced in handling complex projects and adhering to international quality standards.
  • Growing revenue and profitability suggest a positive business trajectory.

JNK India IPO: risks to consider

  • The IPO includes an Offer for Sale (OFS) component, meaning existing shareholders are selling their stake. This might not directly infuse fresh capital into the company for growth.
  • The company operates in a competitive industry, and future success depends on its ability to secure new projects and maintain profitability.
  • JNK India's financial performance for a shorter period (December 2023) is limited and may not provide a complete picture of its financial health.

Overall, JNK India's IPO presents an opportunity to invest in stocks of a company with a presence in the industrial equipment manufacturing sector. However, carefully weigh the risks and consider your investment horizon and risk tolerance before making a decision. Consulting a financial advisor can be beneficial for personalised guidance.

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