JNK India Limited’s initial public offer of ₹650 crore i.e. IPO is going to open for public subscription on 23 April 2024. Meanwhile, in an interview given to Dainik Bhaskar, the company’s CEO Deepak Kachrulal Bharuka said that the company will fully utilize the funds raised from this public issue to meet its working capital requirements. Apart from this, while talking to Bhaskar, he shared many things related to the company and IPO. What will be the promoters’ stake in the company after IPO? Deepak Bharuka said, ‘After the IPO, the promoters’ stake in the company will be around 70%. The promoters are selling about 30% of their stake through this issue. The company is raising Rs 300 crore in primary, the rest will be sold in secondary. JNK India Limited specializes in manufacturing heating equipment for process industries such as oil refineries and petrochemical plants. Which business segment has seen the maximum growth in the last three years? Deepak Bharuka said, ‘Our major business growth in the last three years was in the refinery segment. Our main business is of projects. The Government of India had increased capital expenditure significantly in the last 4-5 years. Only last year it had decreased slightly. However, the government’s capital expenditure may increase again after the elections. Because of this also we hope to get many projects from India and abroad. What % of the order book is from Indian market and overseas? Deepak Bharuka said, ‘80% of the company’s current order book will be from the Indian market. However, earlier 70% of the turnover in a year was from exports. The order book always varies. Sometimes the turnover is more than domestic and sometimes it is more than export. But, we feel that in future our turnover will increase more from exports than domestic. Deepak Bharuka said that the market is growing and we are getting funds for working capital. With this our company will be in a better position. We hope to maintain what our company has achieved so far. What will be the impact of green hydrogen in the industry going forward? Deepak Bharuka said, ‘Our company builds green hydrogen plants for clients. Green hydrogen is in its early stages in India. It will take about 4 to 5 years for growth. Green hydrogen is used in many things including electricity generation and electric cars. Currently, the cost of green hydrogen is high, hence its demand in the industry is not that much and there is not that much investment in it. However, as technology advances, the demand for green hydrogen will increase in the market and there will also be a lot of investment. If you are also planning to invest money in JNK India’s IPO, then we are also telling you all the details of the issue and how much you can invest in it… Retail investors can invest in IPO till 25th April. JNK India Limited wants to raise ₹649.47 crore by selling a total of 1,60,15,988 shares through this public issue. Retail investors can invest in JNK India’s IPO till 25 April 2024. The company has fixed the IPO price band at ₹395-₹415 per equity share. The company’s shares will be listed on BSE-NSE on April 30. The allotment of JNK India’s shares will take place on April 26, 2024. The company’s shares will be listed on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on April 30, 2024. JNK India’s IPO is a combination of fresh issue and offer for sale. This IPO of JNK India is a combination of fresh issue and offer for sale (OFS). Through the fresh issue, the company will sell 0.76 crore shares worth Rs 300 crore. Whereas the existing shareholders and promoters of the company will sell 0.84 crore shares worth Rs 349.47 crore through OFS. The market capitalization of the company is estimated to be ₹2,300 crore after the issue. Before the issue, the promoters held 94.56% stake in the company. The promoters of the company included Deepak Kachrulal Bharuka, Gautam Rampelli, Arvind Kamat, Milind Joshi, JNK Heaters. Ltd. and mascot capital and marketing pvt. ltd. The promoters hold 94.56% stake in the company before the issue. What is the minimum and maximum amount that retail investors can invest? For this IPO, retail investors can apply for minimum one lot i.e. 36 shares. If you apply for 1 lot at the upper price band of IPO at ₹415, you will have to invest ₹14,940. Whereas retail investors can bid for a maximum of 13 lots i.e. 468 shares of IPO. For which investors will have to invest a maximum of ₹ 194,220. 35% of the company’s issue has been reserved for retail investors. About 50% of the company’s issue has been reserved for Qualified Institutional Buyers (QIB). Apart from this, about 35% share is reserved for retail investors and the remaining 15% share is reserved for non-institutional investors (NII). In FY23, the company had recorded a revenue of ₹407.32 crore. In FY23, the company had recorded a revenue of ₹407.32 crore, which was more than ₹296.40 crore in the previous year. Its oil and gas segment accounted for 77% of the company’s revenue. The company’s net profit for the financial year stood at ₹46.36 crore, compared to ₹35.98 crore in the previous year. The company’s total debt for the nine months ending 2023 stood at Rs 56.73 crore. The company’s order book as of December 31, 2023, amounted to ₹845.03 crore, of which 86.29% was from India and 13.71% from overseas. What does JNK India Limited do?
