Jyoti CNC Automation made headlines with its Initial Public Offering (IPO) in January 2024. The company's IPO debuted with a notable premium of ₹84 per share, highlighting the market's excitement. Even a month post-listing, Jyoti CNC sustained the momentum, yielding a return of 30% since its listing. As of February 12, 2024, its stock price stood at ₹563.
The IPO raised ₹1,000 crore, with 75% reserved for institutional buyers, 15% for high-net-worth individuals (HNIs), and 10% for retail investors. The funds raised will be directed toward loan repayment, working capital needs, and other general corporate purposes.
Industry Overview: The Machine Tool Sector
Machine tools, particularly CNC (computer numerical control) systems, are crucial in industries ranging from aerospace to automotive. India's machine tool market is expected to grow at a compound annual growth rate (CAGR) of 11.5% from FY2023 to FY2027, driven by rising demand for precision, productivity, and cost-efficient manufacturing solutions.
CNC machines, which automate metal-cutting processes, are at the heart of this industry transformation. As the need for high-efficiency production systems grows, CNC machines will play a key role in driving India's engineering and manufacturing competitiveness across diverse sectors like defense, heavy machinery, consumer goods, and more.
Jyoti CNC Automation: Company Overview
Founded in 1991, Jyoti CNC Automation is India's third-largest CNC manufacturer, with a domestic market share of approximately 10% in FY2023. The company is also a global player, holding a modest share of 0.04% in the international CNC market in FY2022.
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