JG Chemicals IPO Heats Up: Retail Portion Fully Subscribed on Day 1

5 Mar 2024 , 12:37 PM

The initial public offering (IPO) of JG Chemicals opens for subscription today, with a price band set at ₹210 to ₹221 per equity share. Investors have the option to apply for 67 shares in a lot. As of day 1, the subscription rate stands at 83%. The retail portion of the IPO has been fully subscribed, while the non-institutional investors’ portion is subscribed at 57%. Click here to subscribe the IPO.

Prior to the IPO, the zinc oxide manufacturer garnered over ₹75 Crore from anchor investors, with the company allocating 34.09 lakh shares to four funds at ₹221 apiece. As part of the offer-for-sale (OFS), Vision Projects & Finvest Pvt., Suresh Kumar Jhunjhunwala (HUF), Anirudh Jhunjhunwala, and Jayanti Commercial Ltd. will offload equity shares.

Centrum Capital Ltd., Emkay Global Financial Services Ltd., and Keynote Financial Services Ltd. are serving as the book-running lead managers for the issue. The company’s shares are slated to be listed on the National Stock Exchange and the BSE.

The net proceeds from the IPO will be utilized as follows: ₹910 Crore will be directed towards BDJ Oxides, a subsidiary of the company, to facilitate repayment, funding capital-expenditure requirements for setting up a research & development centre, and financing the long-term working capital requirements of the subsidiary. Additionally, ₹35 Crore from the issue will be allocated for funding the long-term working capital of the company itself.