JG Chemicals IPO: Everything you need to know

1 Mar 2024 , 10:23 AM

The Indian capital market is abuzz with anticipation as JG Chemicals Ltd, the nation’s leading zinc oxide manufacturer, gears up for its highly anticipated initial public offering (IPO). Scheduled to open for subscription on March 5, JG Chemicals Ltd has set the price band for its IPO at Rs 210-221 per share, with the subscription opening on March 5 and closing on March 7. 

The minimum bid quantity is set at 67 shares, with bids allowed in multiples thereof. The IPO consists of a mix of fresh shares worth Rs 165 crore by the company and an offer-for-sale (OFS) of 39 lakh equity shares by promoters.

Key Dates:

• Anchor bidding opens on March 4
• Subscription opens on March 5 and closes on March 7
• Basis of allotment on March 11
• Shares credited to demat accounts on March 12
• Listing on exchanges on March 13

Offer Structure: The IPO offers a diverse allocation to different investor categories, with QIBs, retail investors, and NII (HNI) investors receiving shares in proportion to the net issue. Prominent entities like Vision Projects & Finvest, Jayanti Commercial, Suresh Kumar Jhunjhunwala (HUF), and Anirudh Jhunjhunwala (HUF) will be part of the selling shareholders in the OFS.

Utilization of Proceeds: JG Chemicals intends to utilize the net proceeds from the IPO for various strategic purposes, including investment in its Material Subsidiary BDJ Oxides, funding long-term working capital requirements, and for general corporate purposes. This allocation underscores the company’s commitment to bolstering its operational capabilities and driving sustained growth.

Company Overview: With a proud legacy as India’s largest zinc oxide manufacturer, JG Chemicals has carved a niche for itself in the industry. Leveraging the French process, the company produces high-quality zinc oxide catering to diverse sectors such as rubber, ceramics, paints, pharmaceuticals, electronics, agrochemicals, and more. Its robust product portfolio and customer-centric approach have solidified its position as a trusted partner across industries.

Financial Performance: The company’s stellar financial performance underscores its resilience and growth potential. In the fiscal year ended March FY23, JG Chemicals recorded a consolidated net profit of Rs 56.8 crore, marking a commendable growth of 31.7% over the previous year. Revenue from operations surged by 28% to Rs 784.6 crore, reflecting the company’s strong market presence and operational efficiency.

Merchant Bankers: Centrum Capital, Emkay Global Financial Services, and Keynote Financial Services are entrusted with the responsibility of managing the IPO process, ensuring seamless execution and optimal investor participation.