JNK India IPO: 10 things to know before subscribing to the Rs 649-crore issue

JNK India has launched an initial public offer (IPO) to raise Rs 649.47 crore. The heating equipment company's issue is a mix of a fresh issue and an offer-for-sale component.

As JNK India IPO opens on April 23, here's everything you need to know about it.

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1.) IPO Dates

The IPO will open for subscription on April 23, 2024 and close on April 25, 2024.

2.) Price Band

The price band of the issue has been fixed at Rs 395-415.

3.) Offer Details

It is a mix of fresh issuance of shares worth Rs 300 crore, and an offer-for-sale (OFS) of 84.21 lakh equity shares by the existing shareholders. Goutam Rampelli, JNK Global Company, Mascot Capital and Marketing, and Milind Joshi are the selling shareholders in the OFS.

4.) Objectives of the Issue

The company will spend Rs 262.69 crore out of the net fresh issue proceeds on its working capital requirements, and the remaining on general corporate purposes.

5.) Lot Size

Investors can bid for a minimum of 36 equity shares and in multiples thereof. Hence, the minimum investment by retail investors would be Rs 14,220 (36 (lot size) x Rs 395 (lower price band)). At the upper end, the bidding amount will increase to Rs 14,950

6.) Company Profile

Established in 2010, JNK India specialises in the design, manufacturing, supply, installation, and commissioning of process-fired heaters, reformers, and cracking furnaces. The company has successfully executed projects across various states in India, including Andhra Pradesh, Assam, Bihar, Karnataka, Kerala, Maharashtra, Tamil Nadu, and West Bengal.

7.) Financials of the Company

In FY23, the company achieved a significant increase in revenue, reaching Rs 407.32 crore compared to Rs 296.40 crore in the previous year. The oil and gas segment emerged as the primary contributor, accounting for 77 percent of the total revenue. Net profit for the fiscal year amounted to Rs 46.36 crore, reflecting an improvement from Rs 35.98 crore reported in the preceding year. As of the nine months ending in 2023, the company's total debt stood at Rs 56.73 crore.

8.) Lead Managers

IIFL Securities Ltd and ICICI Securities Limited are the book running lead managers of the JNK India IPO, while Link Intime India Private Ltd is the registrar for the issue.

9.) Key Risks

i.) The company derives a majority portion of its revenues from sales of Heating Equipment. Loss or decline in the demand from the segment may result in an adverse effect on business, revenue from operations and financial condition.

ii.) Any downside in the capital expenditure of oil and gas, petrochemical and fertilizers industry would create an adverse impact on revenue from operations and overall business of the company.

iii.) JNK's business may be subject to labour conflicts, strikes, or other types of conflicts with workforce and third-party fabricators which may harm the financial conditions of the company.

10.) Listing Date

JNK India IPO will likely list on BSE and NSE with a tentative listing date fixed as April 30, 2024.