In the red herring prospectus submitted to SEBI on September 1, the CNC machine manufacturer stated that the IPO would solely involve a fresh issue of Rs 1,000 crore and would not include an offer-for-sale part.

Before submitting the red herring prospectus to the registrar of companies, the company may explore a pre-IPO placement of Rs 200 crore. The size of future issues will be scaled back correspondingly.

For debt retirement (Rs 450 cr), meeting long-term working capital needs (Rs 300 cr), and other corporate uses, the company will utilise the funds.

The Gujarat-based firm claims the twelfth-largest share of the global CNC machine market and serves markets as varied as aerospace and defense, automotive and auto components, general engineering, electronic manufacturing services (EMS), and dies and molds with tailored solutions.

ISRO, BrahMos Aerospace Thiruvananthapuram, Turkish Aerospace, Tata Advances System, Bharat Forge, Shreeram Aerospace & Defence LLP, and Bosch are just few of the companies it claims to have supplied with CNC machines since April 2004.

Jyoti CNC has three factories (two in Gujarat and one in France) with a total order book of Rs 3,143.06 crore as of the 30th of June, 2023.

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With the help of an extraordinary gain related to a loan waiver, the company finally turned a profit in FY23, posting a net profit of Rs 15.06 crore after having lost Rs 48.3 crore the year before.

The company’s operating income increased by 24.5% year-on-year in FY23, totaling Rs 929.3 million. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 34% to Rs 97.4 crore, and the margin increased by 75 basis points to 10.48%, as reported by the DRHP.

Three merchant banks, Equirus Capital, ICICI Securities, and SBI Capital Markets, are handling the offering.

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