J Pan Tubular Components gets SEBI nod to proceed with IPO plans

SEBI issued its observations on the company's draft red herring prospectus (DRHP) on Monday. The issuance of observations allows the company to launch its IPO within the next year. J Pan Tubular Components proposes to issue 51.8 lakh equity shares through the IPO, comprising a fresh issue of 49.2 lakh shares and an offer for sale (OFS) of 2.6 lakh shares by promoter Jignesh Panchal. The HVAC and refrigerator components maker plans to utilise Rs 42.68 crore of the net proceeds from the fresh issue to expand its manufacturing facility in Sanand, Gujarat, and Rs 20.49 crore to establish a new manufacturing facility at Sri City, Andhra Pradesh.

Additionally, Rs 35 crore will be used to repay debt, while the remaining proceeds will be allocated towards general corporate purposes. According to the DRHP, J Pan Tubular Components is expanding its Sanand facility to diversify its product portfolio by commencing the manufacture of brass air-conditioner service valves, including two-way and three-way valves. The facility is expected to have an installed capacity of 16,000 sets per day.

At its proposed new facility in Sri City, Andhra Pradesh, the company plans to establish an automated copper tubing assembly line for air conditioners, with a production capacity of 6,000 sets per day. The company currently operates five manufacturing facilities in India, located in Noida, Neemrana, Pune, Bengaluru, and Sanand. On the financial front, J Pan Tubular Components reported a standalone net profit of Rs 17.55 crore on revenue of Rs 468.1 crore for the financial year ended March 2026. Hem Securities has been appointed as the merchant banker to manage the J Pan Tubular Components IPO.