JG Chemicals Sets IPO Date, Price Band for March 5th Launch

29 Feb 2024 , 09:35 AM

Zinc oxide manufacturer, JG Chemicals Ltd, has announced the pricing details for its upcoming public offer, which is set to open for subscription on March 5th.

The price band for the shares has been fixed at ₹210-221 each. Prior to the public offer, anchor bidding will take place on March 4th, with the subscription window closing on the 7th. Allotment of shares will be finalized on March 11th, and shares will be credited to investors’ demat accounts by the 12th. The company’s shares are scheduled to be listed on exchanges on March 13th.

The initial public offering (IPO) consists of a combination of fresh shares worth ₹165 Crore issued by the company, alongside an offer-for-sale (OFS) of 39 lakh equity shares by promoters. At the upper end of the price band, the total issue size of the IPO will amount to ₹251.19 Crore, with the post-issue market capitalization estimated at ₹860 Crore.

The promoters participating in the OFS include Vision Projects & Finvest, Jayanti Commercial, Suresh Kumar Jhunjhunwala (HUF), and Anirudh Jhunjhunwala (HUF). 

JG Chemicals plans to utilize ₹91.06 Crore of the net proceeds from the fresh issue to invest in its material subsidiary, BDJ Oxides, and allocate ₹35 Crore towards long-term working capital requirements. The remaining funds will be earmarked for general corporate purposes.

Positioning itself as India’s leading zinc oxide manufacturer in terms of production and revenue generated through the French process, JG Chemicals serves various industries including rubber products, ceramics, paints, pharmaceuticals, electronics, agrochemicals, specialty chemicals, lubricants, and animal feed.

The IPO is being managed by Centrum Capital, Emkay Global Financial Services, and Keynote Financial Services, who are acting as the merchant bankers to the issue.