JNK India Shares End At 66% Premium Over IPO Price

Shares of JNK India Ltd. ended at Rs 691.20 apiece on the BSE, a premium of 66.55% over its IPO price of Rs 415 per share. On the National Stock Exchange, the stock ended at Rs 692 per share, a 66.7% premium.

The shares listed at Rs 621 apiece on the National Stock Exchange, and at Rs 620 per share on the BSE.

The strong listing comes after the company's Rs 649.5 crore IPO was subscribed 28.13 times during the three-day bid process. Institutional investors led the subscriptions with 75.72 times, followed by non-institutional investors with 23.26 times and retail investors with 4.11 times.

The IPO was a mix of a fresh issue of Rs 300 crore and an offer for sale of Rs 349.5 crore, with the price band fixed in the range of Rs 395–415 per share. JNK had raised Rs 195 crore from anchor investors a day before its initial share-sale opening for subscriptions.

For the issue, IIFL Securities Ltd. and ICICI Securities Ltd. were the book-running lead managers. According to Tarun Singh, managing director of Highbrow Securities, the IPO stood out because it was backed by strong financials and a strategic decision to set its valuation lower than its listed competitors.

The company is involved in the manufacturing of process-fired heaters, reformers and cracking furnaces that are required in process industries such as oil and gas refineries, petrochemical and fertiliser industries.

The company has completed projects in Andhra Pradesh, Assam, Bihar, Karnataka, Kerala, Maharashtra, Tamil Nadu, and West Bengal; globally, it has completed projects in Nigeria and Mexico.

The company has also diversified into flares and incinerator systems and has been developing capabilities in the renewable sector with green hydrogen.

The business caters to customers primarily from the oil and gas (99.5% revenue mix), petrochemical (0.04% revenue mix) , fertilisers and other industries.