JNK India Limited, a company in the business of manufacturing Heating Equipment for various industries, made a stellar debut on the stock market on Tuesday, April 30, 2024. The shares of the company opened with a bang, trading at a premium of nearly 50 per cent against the issue price of Rs 415.
The shares of company on both the BSE and NSE opened at Rs 629 and 621 respectively, marking an increase of approximately 49.4 per cent and 49.63 per cent from the issue price.
Moreover, later in the day, the stocks even surged further, reaching Rs 709, a whopping 71 per cent increase.
The IPO of JNK India on the closing day of bidding reached a subscription rate of 28.13 times, with a positive response from retail investors, qualified institutional buyers (QIBs), and non-institutional investors (NIIs).
Post the listing of JNK India, Tarun Singh, MD, Highbrow Securities said, "Companies focused on creating and nurturing their value are bound to achieve premium listings due to their strategic presentation at appealing valuations to unsuspecting investors, providing plenty for them to anticipate and trust in."
"I believe the IPO of JNK India Ltd. stood out because, it not only had the financials to demonstrate its value but also made the strategic decision to set its valuation lower than the benchmarks of its listed competitors. This approach led to a superior valuation that was more appealing for investors to endorse," he added.
Allocation Details
Retail investors were allotted 15 per cent of the shares, while QIBs were offered up to 50 per cent and NIIs 15 per cent. The IPO consisted of a fresh offering of Rs 300 crore and an offer-for-sale (OFS) by promoter selling shareholders, totaling up to 8,421,052 equity shares.
Key Players
IIFL Securities Ltd. and ICICI Securities Limited served as the book running lead managers for the IPO, while Link Intime India Private Ltd. acted as the issue registrar.
