JNK India’s initial public offering (IPO) opened for subscription on Tuesday, April 23, and received a 49% subscription on the first day. Qualified institutional buyers (QIBs) led the subscription, with their portion being fully booked at 67%. The retail portion (48%) and non-institutional investors (25%) also saw decent subscriptions.
Prior to the IPO, the company garnered 194.84 crore from anchor investors. Notable participants included Goldman Sachs, Kotak Mutual Fund, HDFC Mutual Fund, and LIC Mutual Fund.
According to the Red Herring Prospectus (RHP), JNK India is a leading manufacturer of heating equipment, including reformers, cracking furnaces, and process fired heaters, which are essential for industries such as fertilizer, petrochemicals, and oil and gas refineries. The company provides comprehensive services from engineering and development to installation and commissioning for both domestic and international markets.
The JNK India IPO consists of a fresh issue of 300 crore and an offer-for-sale (OFS) of up to 8,421,052 equity shares by promoter selling shareholders and an individual selling shareholder.
Key risks listed by the company in its Red-Herring Prospectus (RHP) include:
* The company’s business is subject to various risks and uncertainties, including economic conditions, competition, technological changes, and changes in government regulations.
* The company’s financial performance may be adversely affected by fluctuations in the prices of raw materials and components.
* The company’s business is subject to seasonal factors and may be impacted by weather conditions.
* The company’s operations may be disrupted by natural disasters, accidents, or other unforeseen circumstances.
* The company’s business may be adversely affected by changes in foreign exchange rates.
Despite these risks, JNK India’s strong position in the heating equipment market, experienced management team, and focus on innovation make it a compelling investment opportunity for investors seeking exposure to the growing process industries sector.
