Jyoti CNC Automation Ltd has recently aimed to file its Draft Red Herring Prospectus (DRHP) with the prevalent market regulator Securities and Exchange Board of India (SEBI). The CNC machine manufacturer has high plans to raise an amount of ₹1,000 crore through its initial public offering (IPO).
The company’s maiden public issue is completely a new issue of equity shares with almost no offer for sale (OFS) component, as regard to the preliminary papers filed by the company. The automation firm might consider a pre-IPO placement of equity shares worth ₹200 crore. If any such placement is to be carried out, the size of the latest issue will be reduced. The proceeds from the issue would be certainly be utilised for debt payment, funding long-term working capital requirements of the company, and general corporate purposes, according to the company’s statement. Jyoti CNC Automation is considered as one of the leading manufacturers of computer numerical control (CNC) machines and has customers in numerous sectors.
The company’s customers include ISRO, BrahMos Aerospace Thiruvananthapuram Ltd, Turkish Aerospace, Uniparts India Ltd, Tata Advances System Ltd, Tata Sikorsky Aerospace Ltd. Currently as of June 30, 2023, Jyoti CNC Automation had an order book of ₹3,143 crore.