JYOTI CNC AUTOMATION LTD IPO
What does Jyoti CNC Automation Limited do?
Jyoti CNC Automation Limited is a renowned global leader in the production of CNC machines for metal-cutting. They have established themselves as the third-largest market player in India and the twelfth-largest globally. With a rich experience of over two decades and a strong emphasis on research and development, they offer a wide range of CNC machines that cater to various industries, including aerospace, defense, and automotive.
The company’s growth is fueled by the increasing demand for precision machinery in sectors like aerospace and defense. Their impressive clientele includes esteemed organizations such as ISRO, Turkish Aerospace, and Bosch, among others.
With a diverse portfolio of more than 200 variants, Jyoti CNC Automation Limited has successfully sold over 8,400 machines to more than 3,500 customers worldwide in recent times. The company’s commitment to global expansion and technological innovation is evident through strategic acquisitions like the acquisition of Huron. They also have strong research and development centers in France and India, which enable them to stay at the forefront of innovation and deliver personalized products and efficient operations.
The product range includes:
- CNC turning centers
- CNC turning-milling centers
- CNC vertical machining centers (VMCs)
- CNC horizontal machining centers (HMCs)
- Simultaneous 3-axis CNC machining centers, simultaneous 5-axis CNC machining centers, and multi-tasking machines.
What is the issue size of Jyoti CNC Automation Limited IPO?
The entire public offer of the company is a fresh issue of equity shares aggregating up to Rs 1000 crores.
Risk factors to consider:
The entire public offer of the company is a fresh issue of equity shares aggregating up to Rs 1000 crores.
What is the issue size of Jyoti CNC Automation Limited IPO?
The entire public offer of the company is a fresh issue of equity shares aggregating up to Rs 1000 crores.
It is worth noting that the company has encountered delays in submitting audited consolidated financial statements in the past. This delay could potentially result in consequences or actions being taken against the company.
Moreover, the company has faced challenges in making payments on its credit facilities, leading to delays in repaying both the principal amounts and interest on its loans. Such difficulties could potentially result in a credit rating downgrade, which would impede the company’s access to debt and could have an impact on the market value of its Equity Shares.
Additionally, the company has taken unsecured loans that lenders can demand back at any time. This could potentially affect the company’s financial stability. Furthermore, there is a possibility that these loans could be converted into Equity Shares, which may dilute the holdings of existing shareholders.
Furthermore, the company heavily relies on long-standing relationships with customers, as it lacks recurring orders on an annual or bi-annual basis. This reliance poses a significant risk of customer attrition. Any delays or defaults in client payments could potentially lead to reductions in profits.