JNK India IPO: Retail Investors Lead With Subscriptions On Day 2; GMP Hints Premium Listing; Check Status

The second day of bidding for the initial public offering (IPO) of JNK India, a heating equipment manufacturer, witnessed a surge in investor interest, with the offer being subscribed 63%. This translates to 69.3 lakh equity shares being snapped up out of an issue size of 1.1 crore, according to subscription data available with the exchanges.

Contrary to the first day's trend where qualified institutional buyers (QIBs) dominated the bidding, retail investors took the lead on day two, securing 68% of their allotted quota. Meanwhile, non-institutional investors bid at 0.44 times the reserved portion, and QIBs acquired 67% of the portion allocated for them.

The IPO comprises a mix of fresh issuance of shares worth Rs 300 crore and an offer-for-sale (OFS) of 84.21 lakh equity shares valued at Rs 349.47 crore by existing shareholders. Notable selling shareholders in the OFS include Goutam Rampelli, JNK Global Company, Mascot Capital and Marketing, and Milind Joshi.

JNK India, headquartered in Maharashtra, specializes in process-fired heaters, reformers, and cracking furnaces. The company successfully raised Rs 194.84 crore through the anchor book on April 22, attracting investments from prominent funds such as Natixis International Funds, Kotak Mutual Fund, Goldman Sachs, HDFC Mutual Fund, Allianz Global Investors Fund, DSP Mutual Fund, and LIC Mutual Fund.

In the fiscal year 2022-23, JNK India witnessed a notable increase in revenue, reaching Rs 407.32 crore compared to Rs 296.40 crore in the previous year. The oil and gas segment emerged as the primary revenue contributor, constituting 77% of the total revenue. Additionally, the company reported a net profit of Rs 46.36 crore for the fiscal year, marking an improvement from Rs 35.98 crore reported in the preceding year.

The positive response to JNK India's IPO reflects investor confidence in the company's growth prospects and operational performance. With a strong foothold in the heating equipment manufacturing sector and a track record of financial stability and growth, JNK India aims to leverage the funds raised through the IPO to further expand its business operations and capitalize on emerging opportunities in the market.