JG Chemicals files pre-IPO papers to raise funds

6 Jan 2023 , 11:03 AM

India’s largest zinc oxide manufacturer in terms of production and revenue, JG Chemicals Limited has filed draft prospectus with SEBI to raise funds via an initial public offer (IPO). The issue consists of fresh issue of up to Rs 202.5 crore and an offer for sale (OFS) of up to 57 lakh equity shares. 

The offer for sale comprises shares by Vision Projects and Finvest Pvt Ltd, Jayanti Commercial Ltd, Suresh Kumar Jhunjhunwala (HUF) and Anirudh Jhunjhunwalal (HUF).

As per DRHP, the company will use net proceeds from the issue to invest in its subsidiary, BDJ Oxides, fund long-term working capital requirements and for other general corporate purposes.

The company is leading supplier of zinc oxide to tyre manufacturers, paints manufacturers, footwear players and cosmetics players in India. It has three manufacturing facilities located in Jangalpur (West Bengal); Belur (West Bengal); and Naidupeta (Andhra Pradesh).

Centrum Capital, Keynote Financial Services Ltd, and Emkay Global Financial Services are the book running lead managers to the issue. KFin Technologies Ltd is working as registrar for the same.