Jyothi CNC Automation shares list at 12.39% premium; Buy, Sell or Hold?

Jyoti CNC Automation Share Price: Jyothi CNC Automation share price made a slow start in the stock market today. On the NSE, Jyothi CNC share price was listed at Rs 370 per share today, 11.78 per cent higher than the issue price of Rs 331. On BSE, Jyothi CNC Automation’s share price was listed at Rs 372, 12.39 per cent higher than the issue price. price.

Jyoti CNC Automation’s gray market premium (GMP) continues to improve since the issue close, while the broader markets are hitting new highs. Last heard, the company was commanding a premium of Rs 40-45 per share, suggesting a listing pop of 12-15 per cent for investors. However, it was around Rs 80-100 before the issue opened for bidding.

Jyothi CNC Automation has sold its IPO in the price band of Rs 315-331 with a lot size of 45 shares, which was open for bidding between January 9 and January 11. The company has raised a total of Rs 1,000 crore from its primary offering. , which entirely comprised fresh share sale of over 3.02 crore equity shares.

The issue was subscribed 38.53 times overall due to strong bidding across all investor categories. The allotment for qualified institutional bidders (QIBs) was booked 44.13 times, while the quota for non-institutional investors was subscribed 36.48 times. The portion reserved for retail investors and employees was subscribed 26.17 times and 12.47 times, respectively.

Jyoti CNC Automation is a manufacturer and supplier of CNC machines, specializing in a diverse range of CNC machines, offering 200 types in 44 series. CNC machines are computer numerical control machines, which play an important role in the manufacturing industry.

SBI Capital Markets, Equirus Capital and ICICI Securities are the book running lead managers to the Jyoti CNC Automation IPO, while Link Intime India is the registrar to the issue. The company’s shares will be listed on both BSE and NSE, the tentative date of listing is Tuesday, January 16.

Investors who bid for the issue of Jyoti CNC Automation can check the allotment status on the IPO application check page of the BSE website. Check-in Equity under Issue Type and select Jyoti CNC Automation Limited in Dropbox; Type the application number and add the PAN card number before checking-in on ‘I am not a robot’ before pressing submit button.

What should investors do?

Shivani Nyati, Head of Wealth, Swastik Investmart Ltd, said: “Jyoti CNC Automation, the Indian leader in CNC machine manufacturing, made its stock market debut, listing at Rs 370 per share, 11.8% higher than its issue price. Of Rs 331. While Jyoti CNC’s strong brand presence and strong market share are undeniable, financial concerns and hefty valuations require a cautious approach. Jyothi CNC’s listing had a positive start but was surrounded by concerns. Thus we advise investors to book profits and exit their positions; However, those who still want to hold it should place a stop loss around the issue price.