JNK India IPO Review 2024 – GMP, Financials And More


JNK India IPO Review 2024: JNK India is coming up with its IPO issue of Rs. 649.47 Cr which will open on 23rd April 2024. The issue will close on 25th April and be listed on the exchange on 30th April 2024. This article will analyze the strengths and weaknesses of the JNK India Limited IPO Review 2024. Keep reading to find out!

JNK India IPO Review – Company Overview

JNK India is a manufacturer of process-fired heaters, reformers, and cracking furnaces that are required in process industries such as oil and gas refineries, petrochemicals, and fertilizer industries. The Company is a subsidiary of JNK Global, a Korean Company with is one of the world’s largest manufacturers of Process heaters. 

A process-fired heater is an industrial heater that heats fluids or gases directly by burning a fuel source like natural gas or propane. Reformers are devices that transform hydrocarbons like natural gas or naphtha into synthesis gas, or syngas, a mixture of hydrogen and carbon monoxide. 

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Furthermore, cracking furnaces are used to convert large hydrocarbon molecules into smaller ones, which can subsequently be used to make a range of goods such as fuels, chemicals, and polymers. Cracking is the process of breaking down hydrocarbons, which typically includes heating the feedstock in the presence of a catalyst. 

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The Company specializes in thermal designing, engineering, manufacturing, supplying, installing, and commissioning Heating Equipment and caters to both domestic and overseas markets. Over the years JNK India has diversified into flares and incinerator systems and has been developing capabilities in the renewable sector with green hydrogen. 

The Heating Equipment is required in process industries such as oil and gas refineries, petrochemicals, fertilizers, hydrogen and methanol plants, etc.  In India, JNK has completed projects in 8 Indian states and globally has completed projects in Nigeria and Mexico. 

Further, domestically it has ongoing projects in Gujarat, Odisha, Haryana, and Rajasthan in India. Globally it has projects in Oman, Algeria, and Lithuania. 

About the Industry

India is the 3rd largest oil consumer in the world and the oil demand is expected to reach 11 million barrels per day by CY2045, recording 2X growth between CY2022 & CY2025. 

Growing demand for transportation fuels and petrochemical feedstock are the primary growth enablers of the Indian refinery industry. India is expected to be one of the largest contributors to non-OECD petroleum consumption globally. 

As per the Ministry of Petroleum and Natural Gas (“MoPNG”), the country’s consumption of petroleum products during FY23 increased by 10% compared to FY22, reaching a volume of nearly 223 million metric tonnes. There are 18 refinery projects expected to be commissioned by Fiscal 2031 with a cumulative capacity of 124.0 MMTPA. 

Petrochemicals are key elements in the Indian industrial segment and a major driver for economic growth. In CY2020, the per capita consumption of polymers in India was around 12 Kg, while the global average was 37 kilograms. With the progressive GDP growth, demand for petrochemical products is expected to grow significantly over the medium to long- term. 

India is an agricultural economy and about 80% of the people depend on agriculture. With the growing population, there is a need to increase agricultural production and diversify agricultural base. Fertiliser is one of the main agriculture inputs for increasing food grain production. It strengthens the soil and enhances its fertility. 

Urea is the major fertilizer used in India and accounts for about 60% of the total fertilizer consumption in India. Local production of urea is not able to meet the domestic demand. India is planning capacity additions in this segment to reduce its import dependency and has a target to become self-reliant by calendar year 2025. 

JNK India IPO Review – Financials

JNK India reported a revenue of Rs. 407 Cr in FY23, which increased by 37.4% from Rs. 296 Cr in FY22. Revenues continued to scale higher on account of higher revenue recognition. Since FY21, JNK India’s revenue has increased by 72% CAGR.

During the same period Net profits has scaled by a whopping 68% CAGR from FY21. In FY23 JNK India reported a net profit of Rs. 46 Cr in FY23, which increased by Rs. 36 Cr in FY22.

JNK India IPO Review – Key Players 

JNK India is the 3rd and the smallest player in the process heat manufacturing Industry. Thermax is the closest competitor to the Company, which is also into offering multiple solutions in the energy, environment and chemcal space. JNK predominantly is just a manufacturer of  process-fired heaters, reformers, and cracking furnaces. 

Due to the vast diversification of Thermax, and its ventures in the solar & green energy space the Company has been commanding sky high valuations of 113x price-to-earnings. BHEL on the other hand is also a manufacturer of heavy duty equipment has received multiple year worth of contract from the government, due to which it is commanding a PE of 186x.

Compared to peers, JNK with basic earnings of Rs. 9.66 and price band at the higher end of Rs. 415 will be issued at a price-to-earnings ratio of 42.96x.

JNK India IPO Review key players
Source: RHP of the Company

Strengths of the Company 

  1. Established Track record with a diversified customer base:  JNK India commenced operations in 2010 and has a successful project completion track record of over 10 years. As of December 2023, the Company has served 21 domestic & 8 overseas customers.
  2. Well-positioned to capture Industrial tailwinds: Increasing demand for transportation fuels and petrochemicals are the primary growth enablers of the Indian refinery industry and the Company stands well-positioned to benefit from this
  3. Diversified product portfolio: JNK has a diversified portfolio with its heating equipment required by multiple industries such as Oil & Gas, Petrochemicals, Fertilisers, and others.
  4. Strong Order Book: As of December 31, 2023, JNK India had a strong Order book of Rs. 845 Cr, out of which 86% of the orders came from India. The current size of the order book gives the Company revenue visibility for the next 2.5 years, given the current revenue amount.

Weaknesses of the Company

  1. Inconsistent source of Revenue: As the Company earns based on its projects which are awarded in the form of a contract, the Company’s revenue stream remains fairly unpredictable. 
  2. Dependence on Promoter: JNK India derived 54% of FY23 revenues from its Korean Promoter JNK Global. The subsidiary derived 74% of revenue from its promoter back in FY22.
  3. Rising Raw material Prices: For the construction of JNK’s products steel, pipes, buriners and fans are some of the required raw materials. The Company also imports some of its products from China & Europe. Inflation of products in these countries can significantly impact earnings of JNK
  4. Product Concentration Risk: JNK India derived 85% of its FY23 revenue from the sale of heating equipment. The exposure was even higher in the first 9 months of FY24, during which 93% of the revenue came from heating equipment.

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JNK India IPO Review – GMP

As of the date of writing this article, the Grey Market Premium for the shares was JNK India Ltd has not yet been published. We will update the article with the respective expected as soon as its GMP is updated.

JNK India IPO Review – Key IPO Information

Promoters: Mascot Capital & Marketing Pvt Ltd, JNK Global Co. Ltd (Formerly known as JNK Heaters Co. Ltd, Arvind Kamath, Goutam Rampelli and Dipak Kacharulal Bharuka

Book Running Lead Manager: IIFL Securities Ltd and ICICI Securities Ltd

Registrar to the Offer: Link Intime India Pvt Ltd

The Objective of the Issue

  1. Rs. 263 Cr to be used towards funding working capital requirements.
  2. The remaining amount is to be utilized for General Corporate Purposes.

If you would like to check the DRHP – Click here


In conclusion, JNK India’s upcoming Rs. 649.47 crore IPO is an investment opportunity to benefit from India’s growing refinery and petrochemical industries. With a strong order book and diversified customer base, the company’s prospects appear promising. 

However, investors should carefully evaluate the risks stemming from JNK India’s high dependence on its Korean promoter company. Vulnerability to raw material price fluctuations, and product concentration in heating equipment sales are some other weaknesses of the Company. 

While the company’s financials show robust growth, a balanced assessment of both strengths and weaknesses is advisable before making an investment decision on this IPO. So what do you think about this upcoming IPO? Will you be applying for it? Let us know in the comments below.

Written by Nasir Hussain

By utilizing the stock screenerstock heatmapportfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks, also get updated with stock market news, and make well-informed investments.

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