File: JK Files files IPO paperwork with Sebi to raise Rs 500-600 crore

Mumbai: JK Files and Techniques, part of Raymond Group, is aiming for sales of ₹1,500 crore over the next few years on expectations of strong demand for precision auto parts. Achieving over 50% growth in FY22 with sales of 812 yen, the auto parts business now accounts for almost one-eighth of consolidated revenue at the Group. This is the second year of strong double-digit growth, which the company believes will last.

ET is told that the company will invest nearly ₹150 crore in the coming years, divided equally between its industrial and automatic tool production facilities, where it produces files, drills and hand tools. The investment is likely to be financed primarily by internal accruals, and the company wants to remain debt-free, the insiders added. An email sent to the company remains unanswered.

JK Files has tripled asset turnover, generating incremental revenue of about ₹450 crore. The company will soon achieve its goal IPO route. According to the draft red herring prospectus submitted to the market regulator, the company has an installed capacity of 8.2 million ring gears by the end of June 2021. The company plans to increase around ₹500-600. crore, will mainly be used to reduce the debt of parent company Raymond.

Gearbox capacity is likely to increase by 4-5 million in the next 5 years, and on average its true value ranges from ₹150 to ₹250 per unit.

Organic growth and new order wins for new passenger car programs are likely to sustain transmission equipment usage above 80% and return on capital (RoCE) is likely to be stable despite despite new investments. The auto division’s share of total sales has grown by nearly 500 basis points to 39-40% over the past five fiscal years thanks to new orders and growing penetration of demanding auto variants. flexiplate.

In the transmission segment, the company holds 52-56% market share in passenger cars and 46-50% in commercial vehicle segment. India.

The company supplies ring gears to Mahindra & Mahindra and the leading global heavy-duty highway manufacturers.

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