IPO screener: JNK India subscribed 0.49 times at end of Day 1

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The public issue of heating equipment maker JNK India Ltd was subscribed 0.49 times.

The issue, at a price band of ₹395-415, received bids for 53.91 lakh shares against the offer size of 1.10 crore shares (Net off anchor portion). The minimum lot size is 36 shares.

The ₹650-crore IPO is a combination of fresh issue of equity shares worth up to ₹300 crore and an offer for sale (OFS) of up to 84.21 lakh equity shares (worth ₹349.47 crore) by promoters and an existing shareholder. Those offloading shares in the OFS are promoters Goutam Rampelli, Dipak Kacharulal Bharuka, JNK Heaters Co Ltd, and Mascot Capital and Marketing Pvt Ltd, and a shareholder Milind Joshi.

The IPO has reserved 15 per cent of the size to non-institutional institutional investors (NII), 50 per cent to qualified institutional buyers, and the balance 35 per cent to retail investors.

While QIB portion was subscribed 0.67 times that of NIIs and retail investors by 0.25 times and 0.48 times respectively.

Anchor investors

As part of IPO, the company has garnered ₹195 crore from anchor investors. It allotted 46.95 lakh shares to 19 funds at ₹415 apiece to marquee investors including Goldman Sachs, Kotak Mahindra Mutual Fund (MF), HDFC MF, LIC MF, DSP MF, Bajaj Allianz Life Insurance Company and Aditya Birla Sun Life Insurance Company.

Proceeds from the fresh issue will be used for funding working capital requirements (worth ₹262.69 crore) and general corporate purposes.

JNK India is engaged in the business of thermal designing, engineering, manufacturing, supplying, installing, and commissioning heating equipment and caters to both domestic and overseas markets. The heating equipment is required in industries such as oil and gas refineries, petrochemicals, fertilisers, hydrogen, and methanol plants, etc.

The company’s clientele include Indian Oil Corporation, Tata Projects, and Rashtriya Chemicals & Fertilisers.

IIFL Securities and ICICI Securities are the book-running lead managers of the public issue. The equity shares are proposed to be listed on the BSE and the NSE.