JNK India
Book Building issueMainboard₹649 Cr issue
+49.40%
Listing gain over issue price
Issue size
₹649 Cr
1 lot at cut-off
₹14,940
Lot size
36shares
Open
23 Apr 2024
Close
25 Apr 2024
Allotment
26 Apr 2024
Listing
30 Apr 2024
Listing performance
Issue price
₹415
Listed at
₹620
Listing-day close
₹694.55
Latest price
₹374.40
Close on 23 Oct 2026
Listing gain
+49.40%
Return since issue
-9.78%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Apr 2024 – 25 Apr 2024
- Listing date
- 30 Apr 2024
- Face value
- ₹2 per share
- Issue price
- ₹415 per share
- Lot size
- 36 shares
- Issue type
- Book Building issue
- Total issue size
- ₹649 Cr
- Market cap at offer price
- ₹2,308 Cr
- Promoter holding
- 94.56% → 67.97% pre-issue → post-issue
- ISIN
- INE0OAF01028
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- IIFL Capital Services Ltd.
- Registered office
- Unit No.203, 204, 205 & 206, Opposite TMC Office Centrum IT Park, Satkar Hotel, Thane (west), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 46,94,989 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 36 shares per lot, in multiples, at ₹415
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 36 | ₹14,940 |
| Retail (max) | 13 | 468 | ₹1,94,220 |
| S-HNI (min) | 14 | 504 | ₹2,09,160 |
| S-HNI (max) | 66 | 2,376 | ₹9,86,040 |
| B-HNI (min) | 67 | 2,412 | ₹10,00,980 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
46,94,989
Anchor portion
₹195 Cr
at ₹415 per share
Valuation and performance
Valuation at offer price
₹415 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 9.58 | 11.08 |
| P/E (×) | 43.32 | 37.45 |
| Price to book (×) | 11.92 | — |
| Market cap | — | ₹2,308 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 31.79%
- ROCE
- 34.73%
- Debt / equity
- 0.34
- PAT margin
- 18.24%
- NAV per share
- ₹34.83
- Price to book
- 11.92
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About JNK India
JNK India Limited, incorporated as a private limited company on June 14, 2010, and converted to a public limited company in April 2023, is a manufacturer of heating equipment serving process industries. The company has capabilities in thermal designing, engineering, manufacturing, supplying, installing, and commissioning heating equipment for domestic and overseas markets. It caters to end customers who own and operate refineries, petrochemical complexes, and fertilizer plants, as well as contracting customers who work on behalf of these asset owners. The company has diversified into flares and incinerator systems and has been developing capabilities in renewable sector with green hydrogen. As of December 31, 2023, the company had an order book of ₹8,450.27 million and has served 21 customers in India and 8 customers overseas.
Company Analysis
from RHPJNK India Limited manufactures process fired heaters, reformers, and cracking furnaces for oil and gas refineries, petrochemical, and fertilizer industries, with diversification into flares, incinerators, and renewable energy systems.
JNK India Limited, incorporated as a private limited company on June 14, 2010, and converted to a public limited company in April 2023, is a manufacturer of heating equipment serving process industries. The company has capabilities in thermal designing, engineering, manufacturing, supplying, installing, and commissioning heating equipment for domestic and overseas markets. It caters to end customers who own and operate refineries, petrochemical complexes, and fertilizer plants, as well as contracting customers who work on behalf of these asset owners. The company has diversified into flares and incinerator systems and has been developing capabilities in renewable sector with green hydrogen. As of December 31, 2023, the company had an order book of ₹8,450.27 million and has served 21 customers in India and 8 customers overseas.
oil and gas refiningpetrochemicalsfertilizersrenewable energy
Objects of the Issue
- Funding working capital requirements ₹2,626.90 million p.20
- General corporate purposes ₹170.49 million p.20
- Funding working capital requirements p.63
- General corporate purposes p.63
- Funding working capital requirements ₹2,626.90 million p.105
- General corporate purposes ₹170.49 million p.105
- Capital expenditure for expansion of fabrication facilities and enhancement of engineering capabilities
Issue Structure
- Total Issue
- 15,649,967 Equity Shares aggregating to ₹6,494.74 million
- Fresh Issue
- 7,228,915 Equity Shares aggregating to ₹3,000.00 million
- Offer for Sale
- 8,421,052 Equity Shares aggregating to ₹3,494.74 million
- Price Band
- ₹395 to ₹415 per Equity Share
- Lot Size
- 36 Equity Shares and in multiples of 36 Equity Shares thereafter
- Face Value
- ₹2 each
Business Model
The company generates revenue from manufacturing and supplying heating equipment (process fired heaters, reformers, and cracking furnaces) to oil and gas refineries, petrochemical complexes, and fertilizer plants. It operates on an engineering, procurement, and construction (EPC) model, taking on projects from both end customers and contracting customers. The company is asset-light, outsourcing most fabrication to third-party fabricators. It also earns revenue from flares, incinerators, and developing renewable energy systems.
Business Segments
Manufactures process fired heaters, reformers, and cracking furnaces for oil and gas refineries, petrochemical complexes, and fertilizer plants
Manufactures flares, incinerator systems, and other equipment; developing capabilities in renewable sector with green hydrogen
Design, engineering, manufacturing, supply, installation and commissioning of process fired heaters, reformers and cracking furnaces for oil refineries, petrochemical, fertilizer and hydrogen/methanol plants
Design, engineering, installation and servicing of flares and incinerators systems for waste gas handling
Production and storage of grey hydrogen through onsite and offsite systems; development of green hydrogen capabilities; hydrogen fuel stations and solar photovoltaic EPC services
Designs, engineers, manufactures, supplies, and commissions process fired heaters, steam/hydrogen reformers, and cracking furnaces for refineries, petrochemicals, and fertilizer plants.
Manufactures flare systems and thermal incinerators for safe disposal of gaseous wastes in industrial plants including refineries, petrochemicals, and fertilizer plants.
Provides Engineering, Procurement and Construction (EPC) services for hydrogen refueling stations and solar PV plants.
Manufactures and supplies process fired heaters, reformers, and cracking furnaces for refineries, petrochemicals, and fertilizer plants. Process fired heaters heat fluids/gases by burning fuel; reformers convert hydrocarbons into synthesis gas; cracking furnaces break down hydrocarbon molecules.
Designs, engineers, installs and services flares and incinerators systems. Flare systems safely dispose of excess hydrocarbon gases; incinerators treat tail gas effluent from sulfur recovery units prior to atmospheric emission.
Supplies components of hydrogen supply chain including hydrogen refueling stations (HRS) and onsite/offsite hydrogen production and storage systems. Also provides Solar PV-EPC (design, procurement and construction of solar power plants).
Design, manufacture, fabricate, procure, erect, and commission fired heaters and related products for refineries, petrochemical plants, chemical plants, and power plants. Includes incinerators, reaction furnaces, thermal oxidizers, flares, and hydrogen generation units.
Engineering, procurement, and construction of solar panel installations. Supply, manufacturing, designing, trading, and erection of inverters, stabilizers, solar inverter UPS, solar panels, and power systems. Manufacturing, distribution, generation, transmission, supervision, and control of mechanical, hydraulic, gas, and wind power systems.
Manufacturing, import, export, contractor, sub-contractor, seller, and agent services for renewable energy systems including solar, biomass, solid waste, by-product gases, and gas components. Industrial plant setup, project consultancy, product marketing, and management consulting.
Manufacturing process fired heaters, reformers and cracking furnaces for oil and gas refineries, petrochemical and fertilizer industries
Manufacturing flare systems and incinerators for emission control and waste gas handling in process industries
SWOT Analysis
Strengths
- • Established position in heating equipment manufacturing with diversified capabilities(p.19)
- • Strong order book growth and revenue visibility(p.33)
- • Competitive market position with few major players(p.19)
- • Asset-light business model enabling scalability(p.37)
- • Trademark and logo usage rights with JNK Global(p.46)
- • Insurance coverage for key operational assets(p.47)
- • Experienced management team with deep industry expertise(p.49)
- • Established customer relationships and reputation(p.50)
- • Established track record with diverse customer base(p.116)
- • Strong revenue growth trajectory(p.123)
- • Significant market penetration in Indian refineries(p.123)
- • Strong Order Book visibility(p.123)
- • Experienced management team with deep industry knowledge(p.123)
- • Diversified product portfolio(p.123)
- • Well-positioned for industry tailwinds(p.116)
- • Established track record with 29 customers, including 7 out of 12 Indian oil refiners; supplied equipment to 11 of 24 operating Indian refineries(p.178)
- • High barriers to entry in heating equipment market; JNK India is one of only two most prominent players in Indian market(p.174)
- • Strong revenue growth with CAGR of 71.97% for FY21-FY23; robust order book of ₹8,450.27 million (2.5x annualized revenues)(p.178)
- • Experienced management team with extensive industry expertise; 77 engineers in engineering department (33% of workforce)(p.182)
- • Access to global opportunities through JNK Global relationship; JNK Global is ranked among top three process fired heater producers globally(p.189)
- • Comprehensive regulatory compliance framework in place(p.208)
- • Established management team with significant industry experience(p.221)
- • Strong Board composition with independent directors and diverse expertise(p.230)
- • Established subsidiaries with international and renewable energy presence(p.222)
- • Strong revenue growth trajectory with 71.97% CAGR from FY2021-2023(p.321)
- • Substantial Order Book growth indicating future revenue pipeline(p.321)
- • Diversified customer base with geographic expansion beyond JNK Global dependence(p.321)
- • Successful execution and on-time project delivery generating incentives(p.339)
- • High barriers to entry in heating equipment market driven by specialized technical expertise(p.319)
- • New fabrication facilities enhancing production and export capabilities(p.341)
Weaknesses
- • High dependence on Contracting Customers, particularly JNK Global(p.32)
- • Significant revenue concentration from corporate promoter(p.35)
- • Historical regulatory non-compliances and record-keeping issues(p.34)
- • Dependency on third-party fabricators with limited control(p.39)
- • No registered trademark or logo in company's name(p.41)
- • No proceeds to company from Offer for Sale(p.46)
- • Inadequate insurance coverage relative to assets and inventory(p.47)
- • High working capital dependence and management discretion in projections(p.47)
- • Conflict of interest with promoter JNK Global in the same business line(p.46)
- • Dependence on promoter guarantees for financing(p.49)
- • Low board expertise in listed company requirements(p.51)
- • Incomplete promoter group disclosures(p.52)
- • Significant exposure to related party transactions(p.54)
- • Low capacity utilization at Mundra facility(p.65)
- • Lack of in-house R&D facility(p.62)
- • Dependence on few major customers(p.104)
- • High working capital requirements due to project structure(p.106)
- • Heavy reliance on bank guarantees and fixed deposit margin money(p.106)
- • Overutilization of working capital limits(p.107)
- • Heavy dependence on JNK Global for revenue; 27.08% of revenue from JNK Global in 9M FY24(p.189)
- • Terminated Jajpur facility in April 2024 due to commercial reasons; indicates operational challenges(p.182)
- • Low capacity utilization at Mundra facility; only 6.38% for 9M FY24 and 44% in FY23(p.198)
- • Concentrated customer base with 10 repeat customers out of 29; highest concentration among few large domestic customers(p.198)
- • No long-term contracts or fixed pricing with foreign suppliers; vulnerability to input cost volatility(p.198)
- • No patents or trademarks registered; business dependent on credentials and execution track record(p.200)
- • Regulatory non-compliance and disclosure delays in the past(p.34)
- • Regulatory issue regarding Promoter Group disclosure and consent(p.48)
- • Promoters with significant personal guarantees creating contingent liabilities(p.222)
- • High dependence on JNK Global as a contracting customer for significant revenue portion(p.321)
- • JNK Global concentration risk with no assurance of contract retention or future wins(p.322)
- • Significant working capital requirements for project execution creating financing needs(p.321)
- • Limited ability to pass on increased raw material costs to customers(p.323)
- • Absence of in-house R&D facility creating reliance on JNK Global for technology development(p.323)
- • Dependence on customer-designated suppliers limiting supply chain flexibility(p.323)
Opportunities
- • Large addressable market with growing demand for heating equipment(p.19)
- • Diversification into renewable energy and green hydrogen(p.19)
- • Geographic expansion strategy for international markets(p.41)
- • Access to global markets through cooperative partnership(p.41)
- • Expansion into renewable energy systems and green hydrogen(p.52)
- • Diversification into waste gas handling systems(p.52)
- • Geographic expansion to new jurisdictions(p.59)
- • Significant refinery capacity expansion planned in India(p.131)
- • Growing petrochemical capacity additions(p.139)
- • Strong fertilizer production growth(p.140)
- • Renewable energy sector expansion with hydrogen initiatives(p.123)
- • Large announced demand from heating equipment segment(p.107)
- • Government support through Make in India and PLI schemes(p.137)
- • Large domestic refinery pipeline: 18 refinery projects with 124 MMTPA capacity expected by FY31; estimated heating equipment demand of ₹270,890 million by FY29(p.179)
- • Global expansion potential: 52 refinery projects in 20 countries by 2030 with 510.9 MMTPA capacity; heating equipment demand of ₹490,450 million by CY28(p.182)
- • Waste gas handling systems (flares/incinerators): Growing market with ₹21,540 million demand in India by FY29; 88% from flaring systems(p.184)
- • Green hydrogen opportunity: National Hydrogen Mission with ₹197,440 million outlay; India targeting 5 MMT green hydrogen production by 2030(p.156)
- • Solar PV-EPC market expansion: India targeting 500 GW renewable capacity by 2030 (300 GW solar); annual solar EPC opportunity of ~25 GW(p.162)
- • Geographic expansion strategy: Plan to expand into European markets and establish presence in Middle East and Africa(p.183)
- • M&A strategy: Evaluating acquisitions to strengthen flares/incinerators and acquire electrolyser technology for hydrogen(p.185)
- • Expansion into renewable energy and solar installation business(p.209)
- • Hydrogen infrastructure development for fuel cell applications(p.210)
- • International expansion through subsidiaries and partnerships(p.210)
- • Expansion into petrochemical and chemical plant equipment(p.209)
- • Domestic market expansion with strong order wins from Indian oil and gas companies(p.339)
- • Geographic diversification opportunities in overseas markets including Middle East and Europe(p.321)
- • Product diversification into renewable energy and hydrogen refueling infrastructure(p.342)
- • Expansion of flares and incinerators product segment with growing order wins(p.342)
- • Continued reduction of JNK Global dependence with increasing independent domestic order wins(p.322)
Threats
- • Cyclicality and volatility in capital expenditure of oil and gas, petrochemical and fertilizer industries(p.37)
- • Volatility in raw material costs and supply chain disruptions(p.36)
- • Foreign exchange fluctuation exposure(p.36)
- • Regulatory and compliance risks in multiple jurisdictions(p.38)
- • Delay and cost overrun risks in project execution(p.33)
- • Performance standards liability and warranty obligations(p.48)
- • Significant working capital requirement and financing uncertainty(p.48)
- • Delay and delivery timeline risks(p.48)
- • Intense competition in heating equipment market(p.55)
- • Bidding cost estimation and raw material price risk(p.56)
- • Dependence on leased facilities and SEZ restrictions(p.56)
- • Foreign exchange rate fluctuation risk(p.57)
- • Multi-jurisdictional operational risks(p.59)
- • Labour conflicts and workforce dependency(p.64)
- • Natural disasters and force majeure events(p.64)
- • Third-party fabricator performance risks(p.64)
- • Indian economy and inflation risks(p.72)
- • India sovereign credit rating downgrades(p.65)
- • Cyclical nature of oil and refinery industry(p.58)
- • Exposure to volatility in project execution timelines(p.105)
- • Foreign exchange risk exposure(p.105)
- • Dependence on capital expenditure cycles in target industries(p.147)
- • Competition from international manufacturers(p.122)
- • Industry competitive pressure: Process fired heaters market competitive among 7 companies; newer entrants may emerge despite high barriers(p.200)
- • Dependence on order execution; delays or cost overruns could materially impact revenue and cash flows(p.188)
- • Supply chain vulnerability: Imports from Europe and China for critical components; no long-term supplier contracts or fixed pricing(p.198)
- • Cyclical refinery sector and crude oil market volatility affecting capex investments and project timelines(p.182)
- • Regulatory and environmental compliance requirements across multiple jurisdictions(p.200)
- • COVID-19 pandemic disruption to supply chains, logistics, and project execution(p.201)
- • Leased office and facility premises with no guarantee of renewal; operates from leave-and-license arrangements(p.200)
- • Exposure to environmental regulations and compliance requirements(p.206)
- • Complex labour law compliance requirements across multiple jurisdictions(p.207)
- • Dependence on foreign trade policy and import-export regulations(p.207)
- • Hazardous waste management and environmental authorization requirements(p.206)
- • Order Book realization delays and cost overruns impacting revenue and cash flows(p.321)
- • Volatile raw material prices, particularly steel, affecting profitability and margins(p.322)
- • Supply chain disruptions from geopolitical factors increasing freight and project costs(p.343)
- • Foreign exchange rate volatility affecting export revenues and imported component costs(p.347)
- • Intense competition from established players and potential new entrants with lower-cost offerings(p.319)
- • Risk of order cancellations or project deferrals by customers impacting revenue recognition(p.321)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mascot Capital and Marketing Private Limited | Corporate Promoter (also a Selling Shareholder) | 46.62% | — |
| JNK Global Co. Ltd (formerly known as JNK Heaters Co. Ltd) | Corporate Promoter (also a Selling Shareholder) | 25.79% | — |
| Arvind Kamath | Individual Promoter | Nil | — |
| Goutam Rampelli | Individual Promoter (also a Selling Shareholder) | 11.90% | — |
| Dipak Kacharulal Bharuka | Individual Promoter | 10.25% | — |
| Arvind Kamath | Individual Promoter, Chairperson and Whole time Director | — | — |
| Goutam Rampelli | Individual Promoter and Whole time Director | — | — |
| Dipak Kacharulal Bharuka | Individual Promoter, Whole Time Director & CEO | — | — |
| JNK Global (formerly JNK Heaters Co. Ltd.) | Corporate Promoter | — | — |
| Mascot Capital and Marketing Private Limited | Promoter Group | 46.62% | 32.65% |
| JNK Global | Promoter Group | 25.79% | 18.06% |
| Goutam Rampelli | Promoter | 11.90% | 8.34% |
| Dipak Kacharulal Bharuka | Promoter | 10.25% | 8.92% |
| Arvind Kamath | Promoter | — | — |
| Goutam Rampelli | Promoter | — | — |
| Dipak Kacharulal Bharuka | Promoter | — | — |
| JNK Global | Corporate Promoter | 25.79% | — |
| Arvind Kamath | Promoter | — | — |
| Goutam Rampelli | Promoter | 11.90% | — |
| Dipak Kacharulal Bharuka | Promoter | 10.25% | — |
| Mascot Capital and Marketing Private Limited | Promoter | 46.62% | — |
| JNK Global Co. Ltd | Promoter | — | — |
| Mascot Capital & Marketing Pvt Ltd | Corporate Promoter | 46.62% | — |
| JNK Heaters Co Ltd (Korea) | Corporate Promoter | 25.79% | — |
| Goutam Rampelli | Individual Promoter | 11.90% | — |
| Bharuka Family Private Trust managed by Amicorp Trustees India Private Limited | Family Trust of Individual Promoter | 10.25% | — |
Leadership
Arvind Kamath · Chairperson and Whole Time Director
Goutam Rampelli · Whole Time Director
Dipak Kacharulal Bharuka · Whole Time Director and CEO
Pravin Vyankatesh Sathe · Chief Financial Officer
Ashish Soni · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
JNK India IPO FAQs
What is the lot size of JNK India IPO?
The minimum lot size of JNK India IPO is 36 shares. One lot costs ₹14,940 at the cut-off price.
When does JNK India IPO open and close?
JNK India IPO opened for subscription on 23 Apr 2024 and closed on 25 Apr 2024.
What is the listing date of JNK India IPO?
JNK India IPO listed on 30 Apr 2024.