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JG Chemicals IPO is a book-built issue of Rs 251.19 crores. The issue is a combination of a fresh issue of 0.75 crore shares aggregating to Rs 165.00 crores and an offer for sale of 0.39 crore shares aggregating to Rs 86.19 crores.
JG Chemicals IPO opens for subscription on March 5, 2024, and closes on March 7, 2024. The IPO price band is set at ₹210 to ₹221 per share and the minimum lot size for an application is 67 Shares.
Company Summary
JG Chemicals Limited was founded in 1975 and is a zinc oxide manufacturer using the French process. The company produces more than 80 grades of zinc oxide.
This product is used in various industrial applications such as ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics and batteries, agrochemicals and fertilizers, specialty chemicals, lubricants, oil and gas, and animal feed.
The company operates three manufacturing facilities in Jangalpur and Belur, both in Kolkata, West Bengal, and Naidupeta in Nellore District, Andhra Pradesh. Naidupeta is the largest facility, owned and operated by the Material subsidiary. All manufacturing facilities are ISO 45001:2018 and ISO 14001:2015 certified and ISO 9001:2015 accredited. The company has served the needs of more than 200 local and 50 international customers in more than 10 countries.
Company Strengths
They are the largest manufacturer of zinc oxides in India and among the top ten manufacturers of zinc oxides globally, with an installed capacity of 59,904 MTPA for zinc oxide, 7,056 MTPA for zinc ingots, and 10,080 MTPA capacity for zinc sulphate and other allied chemicals.
Diversification of their customer base across the domestic and global markets has enabled them to further diversify and expand their business Relationships.
Their long-term association with key customers also offers significant advantages such as revenue visibility, industry goodwill, and quality assurance. They believe that their ability to diversify into new markets, lack of dependence on any specific market, and efficient operating process a key strengths in their business operations.
Company Financials
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 271.26 | 297.79 | 264.14 | 209.94 |
| Revenue | 491.10 | 794.19 | 623.05 | 440.41 |
| Profit After Tax | 18.51 | 56.79 | 43.13 | 28.80 |
| Net Worth | 217.86 | 199.89 | 147.66 | 108.48 |
| Reserves and Surplus | 193.22 | 175.67 | 151.23 | 107.17 |
Amount in ₹ Crore | ||||
Objectives of the IPO
The Company intends to utilize the Net Proceeds towards the following objects:
- Investment in their Material Subsidiary, viz. BDJ Oxides
(i) Repayment or pre-payment, in full or in part, of all or certain borrowings availed by the material Subsidiary
(ii) Funding capital expenditure requirements for setting up a research and development center situated in Naidupeta, Andhra Pradesh
(iii) Funding its long-term working capital requirements
- General corporate purposes
Promoters of the Company: The Promoters of the Company are Suresh Jhunjhunwala, Anirudh Jhunjhunwala, and Anuj Jhunjhunwala. The Promoters hold 11,960,000 Equity Shares, equivalent to 37.71% of the issued, subscribed, and paid-up Equity Share capital of the Company.
IPO details
| IPO Date | March 5, 2024 to March 7, 2024 |
| Listing Date | Wednesday, March 13, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹210 to ₹221 per share |
| Lot Size | 67 Shares |
| Total Issue Size | 11,366,063 shares (aggregating up to ₹251.19 Cr) |
| Fresh Issue | 7,466,063 shares (aggregating up to ₹165.00 Cr) |
| Offer for Sale | 3,900,000 shares of ₹10 (aggregating up to ₹86.19 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 67 | ₹14,807 |
| Retail (Max) | 13 | 871 | ₹192,491 |
| Small-HNI(Min) | 14 | 938 | ₹207,298 |
| small-HNI(Max) | 67 | 4489 | ₹992,069 |
| Large-HNI (Min) | 68 | 4556 | ₹1,006,876 |
Allotment Schedule
| Basis of Allotment | Monday, March 11, 2024 |
| Initiation of Refunds | Tuesday, March 12, 2024 |
| The Credit of Shares to Demat | Tuesday, March 12, 2024 |
| Listing Date | Wednesday, March 13, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on March 7, 2024 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
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