Jay Bee Laminations Ltd., a well-established manufacturer in the power industry, is launching its Initial Public Offering (IPO) to raise ₹66.72 crores through a Book Built Issue. The IPO consists of a Fresh Issue of 45.7 lakh shares worth ₹66.72 crores and an Offer for Sale of 15.23 lakh shares totaling ₹22.23 crores. The subscription period for the Jay Bee Laminations Ltd. IPO is from August 27, 2024, to August 29, 2024. The allotment is expected to be finalized on August 30, 2024, with shares set to be listed on the NSE SME by September 3, 2024.

Founded in 1988, Jay Bee Laminations Ltd. has become a significant supplier of electrical laminations, slit coils, and assembled cores made from Cold Rolled Grain Oriented (CRGO) Silicon steel and Cold-Rolled Non-Grain Oriented (CRNGO) Steel. These products are critical for applications in transformers, UPS systems, and inverters within the power industry.

Share Pricing and Investment Details

The share price band for the Jay Bee IPO is set between ₹138 to ₹146 per equity share. The minimum lot size is 1,000 shares, with retail investors needing to invest a minimum of ₹146,000. High-Net-Worth Individuals (HNIs) are required to invest in a minimum of 2 lots (2,000 shares), which amounts to ₹292,000.

SWARAJ SHARES AND SECURITIES PRIVATE LIMITED is the book-running lead manager for this IPO, and BIGSHARE SERVICES PRIVATE LIMITED is the registrar. Shreni Shares Limited will serve as the Market Maker for Jay Bee Laminations Ltd., ensuring liquidity for the shares in the market.

Grey Market Premium (GMP) and Allotment Status

The Grey Market Premium (GMP) for Jay Bee Laminations Ltd. IPO is currently estimated to be between ₹100 to ₹110. This range suggests potential listing gains of 70% - 75%. It's essential to understand that GMP is speculative and based on informal trading; the actual price discovery will occur once the shares are officially listed on the stock exchange.

To check the Jay Bee Laminations Ltd. IPO allotment status, investors can visit the registrar's website on or after August 30, 2024. The process involves selecting Jay Bee Laminations Ltd. from the dropdown list of IPOs, entering the application number, PAN, or DP Client ID, and submitting the details to view the allotment status.

Objectives of the IPO and Utilization of Funds

The proceeds from the Jay Bee Laminations Ltd. IPO will be used for the following purposes:

Funding Working Capital Requirements: ₹4,300.00 lakhs will be allocated to meet the company's working capital needs.

General Corporate Expenses: The remaining funds will be utilized for general corporate purposes.

Financial Performance and IPO Review

Jay Bee Laminations Ltd. has demonstrated significant financial growth over the past few years. The company’s revenue has surged from ₹14,167.39 lakhs in FY22 to ₹24,748.86 lakhs in FY23, and it currently stands at ₹30,349.561 lakhs in FY24. Similarly, EBITDA has increased from ₹1,228.61 lakhs in FY22 to ₹2,334.56 lakhs in FY23, reaching ₹3,269.60 lakhs in FY24. The Profit After Tax (PAT) has risen from ₹595.17 lakhs in FY22 to ₹1,360.00 lakhs in FY23, and currently stands at ₹1,935.27 lakhs in FY24.

For the Jay Bee Laminations Ltd. IPO, the pre-issue Earnings Per Share (EPS) is ₹10.75, while the post-issue EPS is ₹8.57. The pre-issue Price-to-Earnings (P/E) ratio is 13.58x, and the post-issue P/E ratio is 17.03x. In comparison, the industry P/E ratio is 67.00x. The company's Return on Capital Employed (ROCE) for FY24 is 39.23%, and Return on Equity (ROE) is 36.42%. These financial metrics suggest that the IPO is fairly priced and offers a promising investment opportunity.

Conclusion

The Jay Bee Laminations Ltd. IPO presents a compelling investment opportunity for both retail investors and High-Net-Worth Individuals (HNIs). The company's robust financial performance, strategic use of IPO funds, and favorable Grey Market Premium make it an attractive option for those seeking listing gains or long-term investment potential.

Investors are advised to carefully evaluate the details of this IPO and consider participating to capitalize on the growth opportunities in the power industry and transformer manufacturing sectors. With a solid track record and growth prospects, Jay Bee Laminations Ltd. is well-positioned to deliver value to its shareholders.

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