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JG Chemicals IPO Details
Issue opened for subscription on Tuesday, March 5, and will close on Thursday, March 7. JG Chemicals IPO price band has been set in the range of ₹210 to ₹221 per equity share of the nominal value of ₹10. Investors may bid for a minimum of 67 equity shares and in multiples of 67 equity shares thereafter.
It reserved no more than 50% of the shares in the public issue for qualified institutional buyers (QIB), no less than 15% for non-institutional Institutional Investors (NII), and no less than 35% of the offer is reserved for retail investors.
JG Chemicals IPO allotment and listing dates
JG Chemicals IPO is a book-built number of ₹251.19 crores. The issue is a combination of fresh issue of 0.75 crore shares joined to ₹165.00 crore and offer for sale of 0.39 crore shares aggregating to ₹86.19 crores.
The allotment for the JG Chemicals IPO is likely to be finalized on Monday, March 11, 2024. JG Chemicals IPO will list on BSE, NSE and tentative listing set is Wednesday, March 13, 2024.
Read also: JG Chemicals IPO: Issue oversubscribed on day 2 led by retail investors, NIIs; check GMP
JG Chemicals IPO: Objectives of the issue
The selling shareholders in the Offer for sale component are Vision Projects & Finvest Private Ltd (selling up to 2,028,900), Jayanti Commercial Limited (selling up to 1,100 equity shares), Suresh Kumar Jhunjhunwala (HUF) (selling up to 1,260,000 equity shares), and Anirudh Jhunjhunwala (HUF) ( downloading up to 610,000 stock shares).
The net proceeds form a fresh issue of 0.75 crore shares joined to ₹165.00 crores will be used for the following purposes of the company:
a) for investing in the Material Subsidiary, BDJ Oxides with the aim of repaying or prepaying all or some of the loans that the Material Subsidiary has taken. The funds will also be used to finance the capital expenditure required to establish a Research and Development Center in Naidupeta. In addition, some portion will be used to finance the company’s extended working capital needs.
b) Financing long term working capital requirements of the Company
c) General corporate objectives
JG Chemicals IPO: About the Company
In terms of both output and revenue, JG Chemicals is India’s largest zinc oxide manufacturer, according to the Red Herring Prospectus (RHP). The offering for the JG Chemicals IPO is expected to be completed on Monday March 11, 2024. JG Chemicals IPO will list on BSE, NSE with a tentative listing set as Wednesday March 13, 2024.
The company is one of the top 10 producers of zinc oxides worldwide and distributes more than 80 grades of the metal.
Many industrial sectors, including the rubber sector (tires and related products), ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics and batteries, agrochemicals and fertilizers, specialty chemicals, lubricants, oil and gas and animal feed, use the products of the company
JG Chemicals IPO Finance
Between March 31, 2022 and March 31, 2023, the profit after tax of JG Chemicals Limited (PAT) climbed by 31.69%, while its sales increased by 27.47%. For nine months ended.
For the gross nine months ending December 31, 2023 and Fiscals 2023, 2022 and 2021, its adjusted profit after tax for the year was ₹ 185.10 million, ₹ 567.93 million, ₹ 431.26 million and ₹ 287.99 million, respectively. Its restated profit after tax grew at 40.43% CAGR between Fiscal 2021 and 2023.
JG Chemicals IPO: Peer Group
According to the RHP, JG Chemicals listed partners are Rajratan Global Wire Ltd, NOCIL Ltd, and Yasho Industries Ltd.
The earnings per share of JG Chemicals Ltd for FY23 stood at ₹6.30, which means Hence JG Chemicals issue is at 2.23 times P/B (price to book) and 35.09 times price to equity (P/E) as per analyst calculation.
Rajratan Global Wire P/E stood at 33.43 times, P/B of 7.15 times as on February 22, 2024
NOCIL, P/E is at 30.97 times, P/B of 2.62 times.
Yasho Industries Ltd P/E stands at 30.03 times.
Details of JG Chemicals promoters
The promoters of the company are Suresh Jhunjhunwala, Anirudh Jhunjhunwala and Anuj Jhunjhunwala.
JG Chemicals IPO registrar
JG Chemicals IPO Centrum Capital Limited, Emkay Global Financial Services Ltd and Keynote Financial Services Ltd are the book-running lead managers of the JG Chemicals IPO, while Kfin Technologies Limited is the registrar for the issue.
Also Read- Gopal Snacks IPO: Topic subscribed 43% on day 1 so far, retail potion subscribed 73%; check GMP
JG Chemicals IPO: Key Risks
1), JG Chemicals business is almost entirely dependent on the sale of one main product ie zinc oxide (in varying degrees) and any reduction in demand for the same may have an adverse effect on its business and financial performance.
2) JG Chemicals is significantly dependent on the business operations of our material subsidiary ie BDJ Oxides Private Limited and any impairment in the performance of its material subsidiary may adversely affect its business, financial condition and results of operation.
JG Chemicals IPO: GMP
JG Chemicals IPO gray market premium is +37. This indicates that the share price of JG Chemicals was trading at a premium of ₹37 in the gray market, according to investorgain.com.
Considering the upper end of the IPO price range and the current premium in the gray market, the estimated listing price of the JG Chemicals share price was indicated at ₹ 258 per which is 16.74% higher than the IPO price of ₹221.
“Grey market premium” indicates the willingness of investors to pay more than the issue price.
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Published: 06 Mar 2024, 16:56 IST
(tagsTo Translate)JG Chemicals