Jyoti CNC Automation files papers to raise Rs 1,000 crore via IPO

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CNC machine manufacturer Jyoti CNC Automation Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 1,000 crore through an initial public offering (IPO).

The company's maiden public issue is entirely a fresh issue of equity shares with no offer for sale (OFS) component, according to the draft red herring prospectus (DRHP) filed on Friday.

The company may consider a pre-IPO placement of equity shares worth Rs 200 crore. If such placement is undertaken, the size of the fresh issue will be reduced.

Proceeds from the issue would be used for debt payment, funding long-term working capital requirements of the company, and general corporate purposes.

Jyoti CNC Automation is one of the leading manufacturers of computer numerical control (CNC) machines and has customers in varied sectors.

The company's customers include ISRO, BrahMos Aerospace Thiruvananthapuram Ltd, Turkish Aerospace, Uniparts India Ltd, Tata Advances System Ltd, Tata Sikorsky Aerospace Ltd, Bharat Forge Ltd, Kalyani Technoforge Ltd, Rolex Rings Ltd and Bosch Ltd.

As of June 30, 2023, Jyoti CNC Automation had an order book of Rs 3,143 crore.

Equirus Capital, ICICI Securities, and SBI Capital Markets are the book-running lead managers to the issue. The equity shares of the company will be listed on BSE and NSE.

Earlier Jyoti CNC Automation had filed draft papers with Sebi in 2013 to mop up funds through an IPO but later the company shelved its plan.