JNK India IPO - Investment Rationale, Issue Details, Financials, Key Strategies, Risks: Anand Rathi

The three-day initial public offering launched today to raise up to Rs 649.5 crore, with a price band of Rs 395-415 per share.

JNK India Ltd. (Source: Company official website)

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Anand Rathi Report

JNK India Ltd. launched its initial public offering today and the offer will close on April 25. A manufacturer of heating equipment has set the price band in the range of Rs 395-415 per share.

The Rs 649.5 crore IPO comprises of a fresh issue of Rs 300 crore and an offer for sale of Rs 349.5 crore. The minimum order lot is 36.

Object of fresh issue:

  • Funding working capital requirements of the company.

  • General corporate purposes

Valuation

JNK India has an established track record with a diverse customer base with well-positioned to capture industry tailwinds through their demonstrated capabilities over time and diversifying product portfolio to cater to varied industries along with demonstrated financial performance with a robust order book reflecting revenue visibility for last three Fiscals.

At the upper price band company is valuing at price/earning of 49.38 times, enterprise value/Ebitda 33.13 times with a market cap of Rs 23,082 million post issue of equity shares and return on net worth of 47.71%.

We believe that the IPO is fairly priced and recommend a “Subscribe-Long term” rating to the IPO.

Click on the attachment to read the full IPO report:

Anand Rathi IPO Note JNK India Ltd.pdf
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Also Read: JNK India IPO: All You Need To Know

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