JG Chemicals IPO ends with decent subscription

Published on Mar 08, 2024 13:02

The initial public offer (IPO) of JG Chemicals received 22,69,66,453 bids for shares as against 81,68,714 shares on offer. The issue was subscribed 27.78 times.

The Non Institutional Investors (NIIs) category was subscribed 46.33 times. The Qualified Institutional Buyers (QIBs) category was subscribed 32.09 times. The Retail Individual Investors (RIIs) category was subscribed 17.44 times.

The issue opened for bidding on 5 March 2024 and it closed on 7 March 2024. The price band of the IPO was fixed at Rs 210 to 221 per share.

The offer comprised fresh issue of equity shares aggregating Rs 165 crore and an offer for sale of up to 39 lakh equity shares.

The company proposed to utilize the net proceeds from the fresh issue to invest in its material subsidiary, BDJ Oxides, amounting to Rs 91.06 crore; funding long-term working capital requirements amounting to Rs 35 crore and the balance for general corporate purposes.

Ahead of the IPO, JG Chemicals on Monday, 4 March 2024 raised Rs 75.35 crore from anchor investors. The board allotted 34.09 lakh shares at Rs 221 each to 4 anchor investors.

JG Chemical is the largest manufacturer of zinc oxides in India and among the top 10 manufacturers of zinc oxides globally manufacturing through French process the dominant production technology for producing zinc oxide adopted by all the major producers in Americas, Europe and Asia. The market share of the company was around 30% end March 2022.

The company produces more than 80 grades of zinc oxide. The products caters to a wide spectrum of industrial applications, including in the rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agrochemicals & fertilizers, speciality chemicals, lubricants, oil &gas and animal feed.

The firm reported a net profit of Rs 18.51 crore and total income of Rs 486.32 crore for the nine months ended on 31 December 2023.