Kolkata based Chemicals Company J G Chemicals files DRHP with SEBI for the proposed IPO; Key Details here

J G Chemicals is into Industrial Chemicals and is looking raise funds through Fresh Issue and Offer For Sale

J G ChemicalsIPO: Fresh Issue of Equity shares aggregating up to Rs.202.5 crores. Offer of Sale of 5,700,000 Equity Shares through public issue IPO

J G Chemicals IPO: J G Chemicals Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

Promoters of J G Chemicals are Suresh Jhunjhunwala, Anirudh Jhunjhunwala and Anuj Jhunjhunwala and holds 100% stake in the company.

Key Details:

• Initial Public Offer comprising of a Fresh Issue of Equity shares aggregating up to Rs 202.5 Cr and an Offer for Sale of up to 57,00,000 Equity Shares.
• Centrum Capital, Emkay Global, Keynote Financial have been appointed as lead merchant bankers for the proposed IPO.
• It has appointed Kfin Technologies Ltd. as Registrar and Share transfer Agent.
• Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 203 Crs and offer-for-sale (OFS) of up to 5,700,000 equity shares by Vision Projects & Finvest Private Limited, Jayanti Commercial Limited, Suresh Kumar Jhunjhunwala (HUF), and Anirudh Jhunjhunwala (HUF) - All promoters group who will offload Up to 3,640,000 Equity Shares, Up to 140,000 Equity Shares, Up to 1,270,000 Equity Shares and Up to 650,000 Equity Shares respectively...

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Objects of the issue:
Investment in Material Subsidiary, Repayment/Pre payment of certain borrowings, Funding Capital Expenditure, Long-Term Working Capital.

About Company:
J G Chemicals established in _ is India’s largest zinc oxide manufacturer in terms of production and revenue for zinc oxide manufacturing through French process, which is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in Americas, Europe and Asia. It sell over 80 grades of zinc oxide and are among the top ten manufacturers of zinc oxides globally.

Plants have total installed capacity of 77,040 MTPA is spread across our three manufacturing facilities located at (i) Jangalpur (Kolkata, West Bengal); (ii) Belur (Kolkata, West Bengal); and (iii) Naidupeta (Nellore District, Andhra Pradesh), which is the largest manufacturing facility and is owned and operated by our Material Subsidiary.

Key products manufactures are i) Zinc Oxide having capacity of 59,904 MT, ii) Zinc Ingots having capacity of 7,056 MT and iii) Zinc Sulphate and other allied chemicals having capacity of 10,080 MT.

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About Industry:
India ranked sixth in terms of global chemical sales with a contribution of USD 105 billion and accounted for a share of 2.7% during the year. In terms of volume, the zinc oxide production in India has been around 100 – 115 thousand tonnes in the past 5 years from Fiscal 2018 to 2022. During this period, the Indian zinc oxide market size is estimated at around ₹ 18,000 million to around ₹ 20,000 million. The Indian zinc oxide industry includes limited organized players, who constitute a major portion of the market due to high entry barriers for any new entrant.

Source: SEBI, BSE, NSE, DRHP, J G Chemicals, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.