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Raymond Group company JK Files & Engineering is planning an IPO through which it plans to raise somewhere between Rs 500-600 crores.
JK Files and Engineering Ltd. (JKFEL)is a wholly-owned subsidiary of lifestyle group Raymond. It is the world's largest manufacturer of steel files and has a market share of 25% globally with its presence in 55 countries. The company had a market share of 60% by sales volume in India. Alongside steel files, it has several other products in its portfolios such as marble cutters, angle grinders, impact drills, electric drills, cut-off saws, pliers, wrenches, hammers, spanners, screwdrivers, and many more.
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The Board of JKFEL approved the listing proposal in December 2021. Following this, the company filed the DRHP with SEBI to seek its approval to float its IPO a week later. The company received the approval of the market regulator in February 2022.
In the DRHP, the company had stated that the issue would be a 100% OFS which was aimed at raising Rs 800 crores as a part of its parent company's target to be debt-free by 2025. In March 2022, Raymond Ltd. had a debt of Rs 1,088 crores. Today, it was reported by ET that the issue size was being brought down to Rs 500-600 crores.
Raymond Ltd. is a listed company with its shares trading on both major bourses of India. On 2nd June 2022, the share surged over 19% when it announced strong quarterly results. At the time, the share had reported a growth of 43% in the span of a week. However, the share declined shortly after as it currently trades around Rs 894 per share.
Article by Aman Agarwal.
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