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Jyoti CNC Automation IPO fully subscribed on Day 1, GMP surges 29%

Jyoti CNC Automation IPO: Jyoti CNC Automation's grey market premium jumps 29 percent as the IPO opens for subscription. The stock is expected to list on January 16


Jyoti CNC Automation Limited's Rs 1,000-crore initial public offering (IPO) was fully subscribed within hours of opening on January 9.

The investor enthusiasm was also visible in the grey market premium (GMP) which surged Rs 96, or 29 percent, over the issue price Rs 331 on Day 1 of bidding. The GMP implies a listing price of Rs 426.

The grey market is an unofficial ecosystem where shares start trading much before the allotment and until the listing day. Investors typically track the grey market premium (GMP), which can fluctuate wildly, to get an indication of the listing price.

The IPO, which will close on January 11, is a purely a fresh offer of 3.02 crore shares in the price band of Rs 315-331 a share.

The company raised Rs 447.75 crore from several investors through the anchor book a day earlier.

Marquee names like Goldman Sachs, Nomura Funds, Natixis International Funds, Neuberger Berman Emerging Markets Equity Fund, Optimix Wholesale Global, The Master Trust Bank of Japan, Prudential Hong Kong, Carmignac Portfolio, Allianz Global Investors Fund, Eastspring Investments India Fund invested in the Rajkot-based company.

The company provides a range of CNC machines to industries including aerospace, defence, and medical sectors, securing the third-largest market share, contributing to around 10 percent of the market share in FY23.

The company operates three manufacturing facilities — two in Gujarat and one in Strasbourg, France. These units have an annual manufacturing capacity of 4,400 machines in India and 121 in France.

In FY23, Jyoti CNC Automation reported a profit of Rs 15.06 crore against a loss of Rs 48.3 crore in the previous fiscal. The revenue increased by 24.5 percent to Rs 929.3 crore.

The share is expected to begin trading on January 16.

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