Heating equipment manufacturer JNK India made its debut in the stock market to a roaring reception on Tuesday, with its share price listing at Rs 621 against the IPO price of Rs 415. The JNK India share price traded at Rs 675 at the time of writing, 12% above the IPO price. The JNK India IPO saw the company issue 31.17 crore equity shares, from which it raised RS 649.47 crore. Furthermore, it was oversubscribed 28 times, underlining the company’s attractiveness to investors. In addition, JNK India had a fresh issue of Rs 300 crore. The company will use the proceeds from the fresh issue to support its operations, including serving as working capital and general corporate purposes.
Notably, the IPO attracted key institutions such as Goldman Sachs, Bajaj Allianz Life Insurance Company, Kotak Mahindra Mutial Fund among others. This shows a strong foundational standing by JNK India, which will contribute to a positive sentiment around the stock.
Incorporated in 2010, JNK India deals in the the design, manufacture, supply, installation, and commissioning of process-fired heaters, reformers and cracking furnaces. Its client list includes some of India’s largest companies, such as Indian Oil Corporation Limited, Numaligarh Refinery Limited, Tata Projects Limited, among others.
Also, the company recently ventured into renewable energy systems and waste gas handling, showcasing its adaptability to changing needs and ability to diversify into new markets. Not only does it serve the Indian market, but JKNK India has also undertaken major projects overseas, including in Nigeria and Mexico.
Technical analysis
The JNKINDIA share price will need to stay above the 665.65 pivot level to maintain the upside momentum. That will favour the buyers to be in control, although they will likely encounter resistance at 694.15. A continuation of control by the sellers at the resistance point could help them build the momentum to break the resistance and test 714.85. However, a move below the pivot mark will signal control by the sellers, with support coming at 634.80. A continuation of bearish control will favour them to breach the support, and potentially test the psychological support at 610.00.
